Advanced Manufacturing

A Strong Foundation to Build On

Manufacturing in Colorado Springs achieves an industry sweet spot that includes world-class reliability and low utility costs for companies that operate in the Rocky Mountain metro.

Colorado Springs manufacturing firms like Diversified Machine Systems and Bal Seal are strategically located in the central part of the country. Interstate 25 runs conveniently through the city and intersects with Interstate 70 for broad east-west access. With a $350 million investment, lanes are being added to Interstate 25 to streamline the short trip between Colorado Springs and Denver. Interstate interconnectivity means commutes to ports in Texas and California take less than one day.

By air, Colorado Springs manufacturers gain the greatest convenience from the Colorado Springs Airport. Located minutes downtown Colorado Springs, the airport is a joint military and commercial facility with two parallel runways and one crosswind runway. FedEx Express Cargo is on site, as are no-fee U.S. Customs Services.

From bicycle component maker SRAM to food processors Trisco Foods and Promised Land Dairy, 450-plus manufacturing companies in Colorado Springs have the space to launch or expand. Properties and sites for industrial works, R&D testing labs, and distribution centers are located throughout the region, with many in zones that provide a home (and incentives) designed for manufacturing.

From high-end luxury interiors to electromechanical assembly, aviation manufacturers leverage benefits specific to their success. The Sierra Nevada Corporation, Collins Aerospace, The Aerospace Corp., and Ball Aerospace are some of the firms housed within the airport’s Commercial Aeronautical Zone. All local sales and use taxes, with some exemptions, are abated for companies operating within the zone.

Fabrication from the Front Range of Colorado serves a number of purposes. Springs Fabrication, a metal manufacturing company, led the assembly for a system that filtered radiation out of Fukushima’s waters. In support of COVID-19 pandemic recovery, medical carts maker Harloff added new mobile vaccine refrigerator carts to keep vaccines cold, viable, and ready for inoculation.

Colorado Springs manufacturers are supported by an active industry associations that include the Colorado Advanced Manufacturing Association and the Manufacturer’s Edge.

Search Colorado Springs properties for manufacturing locations.

Making Investments Go Further

The following is an overview. To learn more, review our Incentives & Taxes page or contact a member of our economic development team to discuss options specific to your plans.

Commercial Aeronautical Zone

Aeronautical businesses can realize significant incentives within the Commercial Aeronautical Zone at the Colorado Springs Airport. All local sales and use taxes, with some exemptions, are abated for companies operating within the zone.

Pikes Peak Enterprise Zone

Tax credits are available to businesses operating in the Pikes Peak Enterprise Zone.

Manufacturing and Mining Equipment: State and county sales tax exemptions for purchases of manufacturing machinery or machine tools and parts.

Investment: 3% Colorado income tax credit for investments in equipment used in the zone for at least one year.

Job Growth: $1,100 Colorado income tax credit for each new job created above the maximum number employed in the prior tax year.

Employer-Sponsored Health Insurance: Two-year credit of $1,000 ($2,000 total) for each employee insured under an employer-sponsored health insurance program.

Research & Development: 3% of R&D expenditures above and beyond the average of the last two years’ R&D expenditures.

Rehabilitation of Vacant Buildings: 25% credit or rehabilitation costs (up to $50,000) to update buildings at least 20 years old and vacant for two years.

Job Training: 12% credit of the training investment in a job training program conducted on site or off site to improve employee skills.

Sales Tax Exemptions

Standard incentives apply to construction materials, business personal property, and large purchases of manufacturing equipment.

Colorado Sales & Use Tax Exemption on Aircraft and Aircraft Parts

Aircraft used in interstate commerce by a commercial airline and parts permanently affixed to aircraft are exempt from state sales and use tax. Included are fuselage parts, parts for aircraft engines, seats permanently affixed to the aircraft, aircraft paint and other materials.

Aviation Development Zone Tax Credit

The Colorado Springs Airport is a state-recognized Aviation Development Zone. Businesses within this zone, and involved in aircraft manufacturing or maintenance, may qualify for a state income tax credit of $1,200 per net new full-time employee.

A Force to be Reckoned With

Top-notch educational institutions strengthen Colorado Springs’ job training and upskilling initiatives, ensuring the region’s 11,600-plus manufacturing workforce continues to innovate to the next breakthrough.

Pikes Peak State College and the University of Colorado Colorado Springs both offer extensive engineering courses, certificates, and degrees in basic manufacturing, advanced manufacturing, machining, robotics and automation. Technology is woven throughout education in Colorado Springs, a city known for its tech-savvy talent.

The MiLL in Colorado Springs empowers the next generation of industry leaders. MiLL, short for Manufacturing Industry Learning Lab, is an initiative between school districts, professionals, and industry partners. High school, college, military, and industry individuals learn lean manufacturing using the latest woods technology and an industry-education driven curriculum. Partners include MICRO JIG, Kreg, and Stiles.

Transitioning and veteran military represent more than a large percentage of residents; they are also one of the unique drivers behind the Colorado Springs workforce. About 84,000 veterans reside in the area, with an average of 400-plus military separations per month. Many choose to stay and pursue second careers in Colorado Springs, while those stationed at local installations in the past often return. Both contribute unique characteristics – disciplined, skilled, and a strong work ethic.