“The location increases agility in supporting U.S. government and commercial aerospace customers and serves to reinforce partnerships that will progress innovative technologies to advance the industry,” the corporate mentioned in an unsigned assertion.
Raytheon has been headquartered within the Boston space since its founding in 1922. It expanded past its navy enterprise and have become Raytheon Technologies in 2019, when it acquired the commercial know-how conglomerate United Technologies in an all-stock deal value roughly $74 billion.
The merger gave Raytheon a deep foothold in industrial plane; its subsidiaries make jet engines utilized in Boeing and Airbus industrial jets, in addition to a grab-bag of airplane elements, together with rudders, touchdown gear, wing flaps and doorways.
The subsequent yr, the coronavirus pandemic took maintain, throwing the corporate and the broader financial system into disaster. Numerous international locations halted journey in an try to comprise the virus, prompting many carriers to maintain off on main purchases of latest plane.
Commercial jet producers noticed demand for brand new airplanes fall by means of the ground, and the financial ache filtered by means of to suppliers like Raytheon. The firm laid off hundreds of workers amid steep declines in its gross sales.
The firm’s enterprise has since returned amid what CEO Greg Hayes referred to as a “strong commercial aerospace recovery,” with gross sales rising 3 % within the first quarter to $15.7 billion.
The firm’s navy enterprise fell 12 % in the latest quarter after the Defense Department purchased fewer F-35 fighter jets. Still, Hayes mentioned in an April 26 name with buyers that he believes Raytheon is well-positioned to profit from rising protection budgets within the United States and elsewhere.
“We were seeing an increase in defense spending before any of this nonsense in Ukraine with the Russians,” Hayes informed buyers.
“So, I think, again, the trajectory is better than what we had expected,” he mentioned. “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 the nation’s Big Fivedefense contractors will be headquartered within the D.C. space. Lockheed Martin, the world’s largest protection contractor, is predicated in Bethesda, Md., whereas Northrop Grumman and General Dynamics are headquartered in Falls Church and Reston in Virginia, respectively. Boeing introduced its move to Arlington on May 5.
All of them have lengthy had important operations within the D.C. space. Raytheon’s intelligence and area enterprise is in Arlington’s Rosslyn neighborhood, which will even be the location of the brand new headquarters.
In an announcement, Virginia Gov. Glenn Youngkin (R) counseled the corporate’s management and its mission to “build a safer, more connected world.”
“With four of the top five major U.S. 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 mentioned in its news launch that it had not sought any monetary incentives from any state or municipality to relocate the headquarters.