Recent announcement part of clear trend of companies’ preference for region

January 5, 2010; Washington, DC – The Greater Washington, DC region continues to be the premier location for corporate headquarters.  With the recent announcement that Northrop Grumman will relocate its corporate headquarters to Greater Washington in 2011, it joins a list of companies such as Computer Sciences Corp. (CSC), Hilton Worldwide, Volkswagen North America, and SAIC who have moved to Greater Washington in the last 24 months.

When Northrop Grumman arrives, Greater Washington will have secured its 3rd Fortune 100 company (its 15th Fortune 500 and 30th Fortune 1000).  “It is unprecedented to have so many corporate headquarters relocate to the same region in such a short period of time,” said Jim Dinegar, president & CEO of the Greater Washington Board of Trade.  “Most major regions would be thrilled to have one every five years, but Greater Washington has seen five in the last two years.”

The companies have indicated that the Greater Washington region provides access to a highly-educated workforce, closer proximity to the federal government and large customer base, international connectivity, and an attractive quality of life., Three of the recently relocated companies came from California, which is dealing with severe financial strain and fear in the business community of an outsized tax burden into the future.  

“Greater Washington’s resilient economy and global connectivity has made the region increasingly attractive to major corporations across a number of industries. This is the kind of announcement that makes CEOs and Boards of Directors across the county and around the world take notice,” said Matt Erskine, executive director of the Greater Washington Initiative “Given our competitive assets in defense and security specifically, Northrop Grumman is a natural fit for our region.”

With defense spending projected to remain strong in the coming year, major federal contractors look to take advantage of the proximity to more than 800 aerospace and defense-related companies, the Pentagon, 11 military installations, and numerous federal agencies engaged in defense and security work in Greater Washington.

In addition, finding the right workforce is crucially important when it comes to a headquarters relocation.  Greater Washington is number one among major metropolitan areas with the most-educated workforce: 47 percent of its population has a Bachelor’s degree and 22 percent has an advance degree.  And, with more knowledge workers than any other metropolitan region in the country, the region’s transformation into a knowledge-based economy is clear and undeniable.

“Major employers in Greater Washington contribute significantly to the diversity of the economy and provide excellent jobs for the region’s residents,” said Jim Dyke, chairman of the Greater Washington Board of Trade and the Greater Washington Initiative.  “Defense contractors such as Lockheed Martin, CACI, SAIC, BAE Systems, Boeing, EADS and others are good corporate citizens that become involved in every facet of the community – including the United Way, education programs, philanthropic efforts, civic engagement and more.  We look forward to welcoming Northrop Grumman.”

Having another major corporate headquarters company call Greater Washington home benefits the region in other ways, as well – the tax benefits and implications of having a major corporation move to the region should not be underestimated during a time when local governments are struggling with budget deficits.

Some may wonder if the Greater Washington region runs the risk of becoming blasé about yet another company locating its headquarters here, but that is certainly not the case.  “This momentum is undeniable,” said Dinegar.  “Greater Washington is fortunate to welcome another world-class corporation to our dynamic community.  It’s a great way to start the year.”