Just as the Washington, D.C. area Beltway gears up for the Fort Belvoir relocation, which will bring 19,000 new jobs -- and a potential traffic nightmare -- to the region, defense contractor Northrop Grumman (NG) has announced that it, too, is relocating to the Washington area. "As a global security company with a large customer base," explained NG president and CEO Wes Bush, "this move will enable us to better serve our nation and customers."
Coincidentally, Bush has only been NG's CEO for a few days. He took over from outgoing CEO Ron Sugar, who is retiring early.
The District will have some time to prepare for its newest influx of workers, as NG has not chosen a new location yet. The company plans to move only about 300 members of its corporate staff at this time. The relocating staff members will come from NG's Los Angeles offices. NG plans to select a new corporate headquarters location this spring and move by 2011. NG is considering locations in the District of Columbia, Maryland, and Virginia. Much of NG's electronics, computer systems, technical services and shipbuilding are already located in this region, and NG is one of only a few defense contractors not to already have headquarters there. Lockheed Martin is based in Bethesda, Maryland, and General Dynamics Corporation is based in Falls Church, Virginia.
When NG's corporate employees do move out of Los Angeles, they may be in for an unwelcome surprise as they start looking for housing in the Washington, D.C. area. Housing in Washington is 13% more expensive than housing in Los Angeles. The overall cost of living in Washington is about 7% higher than the cost of living in L.A. The differences are mostly in the areas of housing and transportation -- food and health care cost about the same in both places, and utilities are a little less expensive in Washington. Relocating employees may want to use the following resources as they research the Washington D.C. area:
- Local counties outside the District include: Fairfax, Alexandria, Arlington, Prince William, Prince George's, Frederick, Montgomery, Stafford, and Charles. These county websites are the place to start for families who are relocating. They include information about schools, libraries, property assessments and taxes, utilities, recreation and shopping, employment and volunteer information, and public transportation networks that connect to the Washington public transporation system. They also include maps, information about planned improvements to local cities, and calendars of local events.
- A cost of living calculator can be used to find out how far the same amount of income will go in two different cities. Families can use a cost-of-living calculator to compare different suburbs, as well.
- Washington area bus and train schedules can be found at the Washington Metropolitan Area Transit Authority.
- Extra Space Storage can provide self storage for families who find they must downsize. Extra Space has facilities in both Los Angeles and Washington D.C., and Extra Space gives families their first month of storage rental free.
As families and large corporations relocate away from Los Angeles, L.A. is becoming a city of small to mid-sized companies. Los Angeles County has lost many of its largest corporate residents over the last few years. In the last five years, for example, Spanish-language broadcasting company Univision Communications Inc., hotel giant Hilton, and specialty health care provider DaVita Inc., among others, have all left the area.
NG's aerospace systems will remain where they are, in the Los Angeles area, a company spokesman said. Congresswoman Jane Harman (D-Venice) was glad to hear it. "Rocket scientists don't grow on trees," she said. "Maintaining the region's aerospace industrial base is essential for national security and the local economy. These are the women and men who won the Cold War, and the synergy between the L.A. Air Force Base's Space & Missile Systems Center, the Aerospace Corporation, and nearby industry is more important than ever." Almost 30,000 NG employees will remain in California.
Northrop Grumman is the second largest defense contractor and global security company in the United States. It was formed when Northrop Aircraft merged with Grumman Corporation in 1994. NG now has 120,000 employees. It manufactures aerospace, electronics, and computer equipment for government and commercial clients. It also provides shipbuilding and technical services. For example, a few days ago NG delivered a new submarine to the U.S. Navy.