On February 18, Boeing Defense and Secretary of War Pete Hegseth announced that Boeing is moving its Defense, Space, and Security Headquarters from Arlington to St. Louis, Missouri, to be nearer its manufacturing base.
Its current location in Arlington is across the road from the Pentagon and across the Potomac River from Washington. Proximity to DC was seen as a big plus for the aeronautics giant since it receives huge federal defense contracts. Moreover, during the recent administration of Republican Glenn Youngkin, the Old Dominion actively recruited businesses to locate and expand here through a series of business-friendly incentives. This May 7, 2022, article reports on Boeing’s HQ move from Chicago to Arlington and includes this quote from then-Governor Youngkin’s announcement about the move: “From day one, our goal has been to make Virginia the best place to live, work, and raise a family.”
That division was based in St. Louis from 1997 to 2017, then it was moved to Chicago, then to Arlington, and now it’s going back to St. Louis. Many at Boeing have heralded the move because it will put executives and labor in closer proximity to each other and aid collaboration and feedback.
In his remarks as a part of his “Arsenal of Freedom” tour, War Secretary Hegseth said he was delighted to be in St. Louis, “which is known as ‘fighterland USA.’” Hegseth touted the move as “more out of DC, more into the Heartland of America.” You can watch an excerpt of his remarks to Boeing employees here.
On January 17, Virginia inaugurated its first female governor, Abigail Spanberger (D). So, the state’s sudden loss of the division Headquarters of the 63rd largest Fortune 500 company is not welcome news.
Since taking office with a huge Democrat majority in the Virginia General Assembly, Democrats have actively dismantled many of former Governor Youngkin’s policies and have proposed and discussed up to 50 new taxes and more DEI requirements for businesses.
US Senator Eric Schmitt (R-Missouri), in a statement, celebrated Boeing’s move: “St. Louis is the beating heart of America’s defense industrial base. Our mechanics, engineers, and technicians have built some of the greatest machines ever employed by our military, and the next-generation fighter aircraft – the F-47 – will be made in Boeing St. Louis.”
Most state and local governments are keen to attract and keep businesses, because the companies themselves, their employees, and their families boost an area’s population, tax base, economic power, and prestige. On the flip side, losing a business reduces an area’s populationand tax base, and can set off a downward spiral.
– Scott Dreyer
