“The site increases flexibility in supporting commercial airline customers and the US government and works to foster partnerships that will develop innovative technologies to advance the industry,” the company said in an unsigned statement.
Raytheon has been headquartered in the Boston area since its founding in 1922. The company expanded beyond its military business and became Raytheon Technologies in 2019, when it acquired United Industrial Technology Group in All-share deal It is worth about $74 billion.
The merger gave Raytheon a deep foothold in commercial aircraft. Its subsidiaries manufacture the jet engines used in Boeing and Airbus commercial aircraft, as well as a carrying case of aircraft parts, including rudders, landing gear, wing flap and doors.
The following year, the coronavirus pandemic spread, throwing the company and the broader economy into crisis. Several countries have halted travel in an effort to contain the virus, prompting several airlines to halt large purchases of new aircraft.
Commercial aircraft manufacturers have seen a drop in demand for new planes, and economic pain has passed to suppliers like Raytheon. The company has laid off thousands of employees amid a sharp decline in its sales.
The company’s business has since returned amid what CEO Greg Hayes called a “strong rebound in commercial aviation,” with sales up 3 percent in the first quarter to $15.7 billion.
The company’s military business fell 12 percent last quarter after the Defense Department purchased fewer F-35 combat aircraft. However, Hayes said in an April 26 call with investors that he believes Raytheon is well-positioned to take advantage of increased defense budgets in the United States and elsewhere.
“We were seeing an increase in defense spending before any of this crap in Ukraine with the Russians,” Hayes told investors.
“So, I think, again, the track is better than we expected,” he said. “I mean, I’m going back two years, when the merger first happened, we thought defense spending would be flat to pick up a little bit. And I think everyone recognizes the need to modernize and the need to prepare — to deter these people in a more robust way.”
With Raytheon moving, all Big Fivedefense contractors in the country will be based in the DC area. Lockheed Martin, the world’s largest defense contractor, is headquartered in Bethesda, Maryland, while Northrop Grumman and General Dynamics are headquartered in Falls Church and Reston, Virginia, respectively. Boeing announced Moving to Arlington On May 5.
All of them have long had large operations in the metropolitan area. Raytheon’s intelligence and space business is located in the Rosslyn neighborhood of Arlington, which will also be the site of the new headquarters.
In a statement, Virginia Governor Glenn Youngkin (right) praised the company’s leadership and mission “to build a safer, connected world.”
“With four of the five largest aviation and defense pioneers in the United States now based in Virginia, this decision based in Arlington demonstrates that the Commonwealth is the best destination for the aviation and space community,” Youngkin wrote.
Raytheon said in its press release that it has not requested any financial incentives from any state or municipality to move the headquarters.
“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”