Defense contracting has expanded sharply in Los Angeles County over the past decade. The total value of contracts secured by local firms more than doubled in inflation-adjusted terms, reaching $15 billion in the most recent year, LAist reported. This increase far exceeded the roughly 19 percent rise in the overall U.S. defense budget during the same period.

Much of the money still flows to established contractors headquartered outside the region, including Boeing. At the same time, newer companies have captured a larger portion by offering systems such as low-cost missiles, drones, surveillance satellites and artificial-intelligence tools. Ten startups based in the Los Angeles area reached unicorn status in 2025, with most operating in aerospace or defense, according to LAist.

The composition of major contracts has shifted toward space and drone work. In 2015, 14 of the top 100 defense contracts in California involved those areas; by 2025 the number had risen to 21. Measured by dollar value, the share moved from 13 percent to 18 percent, LAist noted.

Venture capital has supported the expansion. Private investment in aerospace and defense since 2008 has produced substantial growth, LAist reported. The combination of investor funding and larger government budgets has created political friction, especially as the conflict in Iran increases demand for munitions and the administration proposes a record $1.5 trillion military budget that includes early funding for a nationwide missile-defense system.

Several lawmakers whose districts have seen large contract gains represent strongly Democratic areas. California’s 36th District, which includes the defense hub of El Segundo, recorded more than $3.3 billion in added contracts over the decade. The 43rd District, represented by Maxine Waters, saw obligated spending rise by more than $1.6 billion, or over 500 percent after inflation adjustment, according to LAist.

California now hosts 47 of the top 100 technology-focused national-security companies, more than five times the total in any other state. Local officials credit the combination of historical aerospace expertise and recent federal seed funding for attracting both private capital and new contracts.

This report is based on coverage by LAist: https://laist.com/news/defense-tech-has-unleashed-a-new-weapons-boom-in-southern-california