SpaceX talent pipeline helps turn El Segundo into a new tech hub in Los Angeles South Bay

El Segundo, a small city in Los Angeles’ South Bay near LAX, is shifting away from its old identity as a refinery and heavy industry town and toward a broader high-tech business base, according to ABMedia. The report says SpaceX played a central role by bringing in engineering talent and helping seed a wave of startups, even after moving its headquarters operations to Texas while keeping major operations in nearby Hawthorne. New companies in the area span orbital pharmaceuticals, small nuclear reactors, automated systems, fisheries robotics and biomass energy conversion. ABMedia also points to a local tax structure as a major draw: El Segundo does not levy a gross receipts tax on businesses and instead charges fixed annual fees based on company size. That approach has helped attract law firms, accounting firms and financial institutions alongside aerospace, sports and toy businesses. Mayor Chris Pimentel told the Los Angeles Times that the city, with a population of about 17,000, is thriving thanks to major employers, small-town appeal and civically engaged residents. The report adds that housing demand has risen with business expansion, while the local residential vacancy rate stands at 3.4%.