By Nicole Cornett, Managing Editor, Expansion Solutions Magazine
Over the past year, Oklahoma’s economy has been significantly impacted by its leading businesses and industries. The state’s economy showcases a dynamic and diverse industrial landscape, driven by sectors such as agriculture, energy, aerospace and defense, and manufacturing. Oklahoma’s real GDP growth rate was notable at sixth percent in the third quarter of 2023, outpacing the national average and indicating a robust economic trajectory.
The state’s central location and robust transportation infrastructure make Oklahoma easily accessible. Central amid New York, Los Angeles, Mexico and Canada, the state is ideally positioned to serve the United States, North America, and world markets through a comprehensive network of air, ground, water, and rail transportation systems. The state is home to four inland ports, including the Port of Catoosa, the nation’s furthest inland, all-weather, ice-free port, which connects the state to seaports worldwide, and twenty rail operators provide Class I and II service throughout the state.
Oklahoma’s industries are diverse, much like its landscape. From aerospace to agribusiness and financial services to startups, businesses are continuing to grow in the state. The state has made the process easier for companies to develop and grow with living costs as much as forty percent lower than the national average and world-class workforce development programs and incentives including job creation incentives, manufacturing sales tax exemptions, and workforce tax credits.
The energy sector remains a cornerstone of Oklahoma’s economy, with the state being a significant player in oil, natural gas, and renewable energy production. Oklahoma’s prowess in energy is underscored by its ranking as the country’s third-largest producer of natural gases and fifth largest in crude oil production. The state’s energy sector, including companies like ONEOK and Devon Energy, contributes over $35 billion to Oklahoma’s GDP, highlighting its critical role in the state’s economic health.
Aerospace and defense also play a pivotal role in Oklahoma’s economic landscape. With companies like Raytheon Technologies, Boeing, and Lockheed Martin having a strong presence in the state, the aerospace and defense industry contributes significantly to Oklahoma’s revenue streams, leveraging the state’s strategic location and advanced manufacturing capabilities.
Agriculture and forestry, traditional pillars of Oklahoma’s economy, continue to thrive. The state is a top producer of wheat, beef, and dairy products in the United States, with its agricultural sector generating over $6.1 billion to the state’s GDP. Oklahoma’s rich agricultural heritage supports a vast array of commodities, from pecans and soybeans to hogs and cattle, reinforcing the sector’s importance to the state’s economic fabric.
Manufacturing in Oklahoma, though smaller in scale compared to raw material production, is significant, especially in transportation equipment, industrial machinery, and electronic equipment. The manufacturing sector’s diversification contributes to Oklahoma’s economic resilience and adaptability, enabling it to respond to changing market demands and opportunities.
Oklahoma has seen significant economic development projects that contribute to its growth and prosperity. Here are some notable highlights:
- Enel Solar Cell and Panel Factory, a global renewable energy company, announced their commitment to invest over $1 billion in a solar cell and panel factory in Oklahoma. This project represents the largest economic development project in state history. The factory is expected to have an annual production capacity of three gigawatts and create around 1,000 new direct permanent jobs by 2025. Construction is set to begin in the fall of 2023.
- Premium Aerospace Center (PAC), an aerospace and defense company, chose Oklahoma City for its international headquarters. They will invest several million dollars to renovate and expand existing hangars at the Oklahoma Air & Space Port complex in Burns Flat. This move is estimated to add as many as 600 new jobs.
- Raytheon Technologies’ business Pratt & Whitney announced a $255 million investment to develop a new aerospace facility in Oklahoma City. The 845,000-square-foot sustainment facility will serve as a depot operations hub for Pratt & Whitney military engines. This investment will enhance MRO capabilities and create jobs.
- Oklahoma State University, along with partners, opened the LaunchPad Center for Advanced Air Mobility at OSU-Tulsa’s Helmerich Research Center. This center aims to promote the development of technologies in advanced air mobility, positioning Oklahoma as a hub for innovation in this field.
These projects demonstrate Oklahoma’s commitment to economic diversification, job creation, and technological advancement. The state continues to attract investments and foster growth across various sectors, ensuring a bright future for its economy.
In 2023, there were a total of 71 announcements for new and expanding companies statewide with a potential investment of $7.8 billion. Of those, 17 companies are establishing a new presence in Oklahoma. At least 6,532 new jobs are expected from all announcements.
Oklahoma has some of the lowest tax rates and some of the best tax incentives in the nation. The state offers companies a low cost of doing business, a low cost of living for employees, and tax rebates that reduce tax burdens even further. The state is globally recognized for its outstanding incentive programs and pro-business environment and companies can choose between a cash incentive or a tax credit package, and in some cases, qualifying businesses can take advantage of both programs.
Oklahoma’s economy over the past year has benefited from the growth and development of its key industries. The state’s strategic focus on sectors like energy, aerospace and defense, agriculture, and manufacturing has not only fueled economic expansion but also positioned Oklahoma as a competitive player in the national economy. This diversified economic base, coupled with a lower unemployment rate of 3.3 percent as of November 2023, suggests a positive outlook for Oklahoma’s economic future.
