“The location increases agility in supporting US government and commercial aerospace customers and serves to reinforce partnerships that will advance innovative technologies to advance the industry,” the company said in an unsigned statement.
Boeing to move headquarters from Chicago to Arlington, Va.
Raytheon has been headquartered in the Boston area since its founding in 1922. It expanded beyond its military business and became Raytheon Technologies in 2019, when it acquired the industrial technology conglomerate United Technologies in an all-stock deal worth roughly $74 billion.
The merger gave Raytheon a deep foothold in commercial aircraft; Its subsidiaries make jet engines used in Boeing and Airbus commercial jets, as well as a grab-bag of airplane parts, including rudders, landing gear, wing flaps and doors.
The next year, the coronavirus pandemic took hold, throwing the company and the broader economy into crisis. Numerous countries halted travel in an attempt to contain the virus, prompting many carriers to hold off on major purchases of new aircraft.
Commercial jet manufacturers saw demand for new airplanes fall through the floor, and the economic pain filtered through to suppliers like Raytheon. The company laid off thousands of employees amid steep declines in its sales.
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The company’s business has since returned amid what CEO Greg Hayes called a “strong commercial aerospace recovery,” with sales rising 3 percent in the first quarter to $15.7 billion.
The company’s military business fell 12 percent in the most recent quarter after the Defense Department bought fewer F-35 fighter jets. Still, Hayes said in an April 26 call with investors that he believes Raytheon is well-positioned to benefit from growing defense budgets in the United States and elsewhere.
“We were seeing an increase in defense spending before any of this nonsense in Ukraine with the Russians,” Hayes told investors.
“So, I think, again, the trajectory is better than what we had expected,” he said. “I mean, I would go back two years, when the merger first occurred, we thought defense spending was going to be flat to up slightly. And I think everybody recognizes the need for modernization and the need to prepare for — to deter these folks in a more robust fashion.”
With Raytheon’s move, all of the nation’s Big Fivedefense contractors will be headquartered in the DC area. Lockheed Martin, the world’s biggest defense contractor, is based in Bethesda, Md., while Northrop Grumman and General Dynamics are headquartered in Falls Church and Reston in Virginia, respectively. Boeing announced its move to Arlington on May 5.
All of them have long had significant operations in the DC area. Raytheon’s intelligence and space business is in Arlington’s Rosslyn neighborhood, which will also be the site of the new headquarters.
In a statement, Virginia Gov. Glenn Youngkin (R) commended the company’s leadership and its mission to “build a safer, more connected world.”
“With four of the top five major US aerospace and defense leaders now based in Virginia, this decision to headquarter in Arlington demonstrates that the Commonwealth is the best destination for the aerospace and defense community,” Youngkin wrote.
Raytheon said in its news release that he had not sought any financial incentives from any state or municipality to relocate the headquarters.