"With a quality educated workforce, Tullahoma is a national leader for aerospace and technology industries, and serves as the regional hub for medical and retail services."
Tullahoma is ranked as a top-ranking “Micropolitan” City in the state of Tennessee based on economic strength factors. We are a business-friendly community with regulatory and support mechanisms geared toward nurturing growth of existing business and development opportunities for newcomers.
Demographics
Middle Tennessee Industrial Development Association (MTIDA)
The Middle Tennessee Industrial Development Association is an economic development agency founded by the electric cooperative and municipal power systems in Middle Tennessee.
Guided by a board of directors, MTIDA represents and promotes industrial development in 38 Middle Tennessee counties, stretching from the Kentucky border to the Alabama state-line. The steady growth of the area's population attests to the viability of the region.
Download the Tullahoma 2026 MTIDA Community Report
For more information, visit www.mtida.org.
Aerospace
Arnold Air Force Base and the Arnold Engineering Development Complex are central drivers of Tullahoma’s economy and have helped establish the region as a nationally recognized hub for aerospace research, testing, and engineering. AEDC, headquartered at Arnold Air Force Base, operates the world’s largest and most advanced complex of flight simulation and aerospace testing facilities, supporting military, commercial aviation, missile, and space programs.
The aerospace sector in Tullahoma supports thousands of high-skilled jobs in engineering, advanced manufacturing, research, defense contracting, and technical services. The presence of Arnold AFB has attracted a network of aerospace companies, contractors, and research organizations to the area, including partnerships with universities and technology firms focused on aviation, propulsion systems, wind tunnel testing, and aerospace innovation.
Arnold Air Force Base also has a significant regional economic impact. In fiscal year 2025, the base generated an estimated $1.2 billion in economic impact and supported nearly 6,900 total jobs through direct employment and secondary economic activity.
This aerospace and defense presence gives Tullahoma a unique economic identity uncommon for a city of its size. The community benefits from a highly educated workforce, stable federal investment, and a strong concentration of STEM-related industries, helping position the region as an important contributor to national defense and aerospace advancement.
Industrial & Manufacturing
Tullahoma is home to several industrial parks and manufacturing facilities that provide stable employment opportunities and contribute significantly to regional economic growth. Companies in the area benefit from access to workforce development partnerships through local schools, technical education programs, and institutions such as Motlow State Community College.
The city’s location between major metropolitan markets such as Nashville, Chattanooga, and Huntsville further strengthens its appeal for industrial recruitment and logistics operations. Combined with a business-friendly environment and long-standing industrial presence, manufacturing continues to play a vital role in Tullahoma’s economic stability and future growth.
Check out the Directory of Manufacturers to find details on companies in Tullahoma, TN. For more information, contact the Coffee County Industrial Board.
Transportation
The Tullahoma Municipal Airport has been recognized as a winner of the Tennessee Aeronautic’s Division “Red Carpet Award” and has state of the art facilities, including a new, modern terminal. It has three runways including one that is 5,500 ft. long, capable of handling all types of corporate jet aircraft. A variety of VOR, GPS, and NDB instrument approaches are published for both paved runways and offer the lowest GPS approach ceiling and visibility minimums in this region of Tennessee. The airport is home to over 142 based aircraft and has 30,00 flight operations each year, making it one of the busiest small airports in the state of Tennessee.
The Beechcraft Heritage Museum, the University of Tennessee Flight Research Center, Vanderbilt University Life Flight facility, and Northern Field Aviation are based at the airport.
Ports are nearby and CSX dissects the city of Tullahoma.
CSX Operations
Operates and maintains 1,572 miles of track
Annually handles approximately 1,500,000 carloads of freight in TN
Employs approximately 1,700 people in TN
In recent years CSX invested more than $65M in TN railways
CSX Facilities
Division headquarters in Nashville
Rail yards in Nashville with intermodal terminals in Memphis and Nashville
TRANSFLO terminals in Chattanooga, Knoxville, and Nashville
Automotive distribution centers in Memphis, Smyrna, Nashville, and Spring Hill
For more information, visit TAEDC.
