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Boeing relocates its headquarters from Chicago to Arlington, Virginia

Chicago (CBS) -Boeing announced Thursday that it will relocate its global headquarters from Chicago to Arlington, Virginia, just outside Washington, DC.

According to the news release, the aerospace giant already has an office in the Crystal City area of ​​Arlington, and its employees support a variety of corporate functions, working on advanced airplane development and autonomous systems.

By relocating its headquarters to Arlington, Boeing will be closer to key customers such as the Pentagon and Pentagon officials, the company said. This move will also bring Boeing closer to federal regulators.

In addition to relocating its headquarters to the Arlington campus, Boeing also plans to develop a research and technology hub for draw engineering and technical personnel.

Boeing never leaves Chicago altogether. According to a news release, the company will maintain a “significant presence” at its Chicago office at 100N. Riverside Plaza in West Loop Gate.

In a news release, Boeing President and Chief Executive Officer Dave Calhoun said, “I am very grateful for the ongoing relationship between Chicago and Illinois. To maintain a strong presence in the city and state. I’m looking forward to it. ”

Boeing said it implements a “flexible and virtual solution” that eliminates the need for everyone to be in the office and requires less office space. The Boeing office in Chicago requires less office space for employees based there.

“In today’s business environment, some parts of the company are adopting flexible work strategies and taking steps to reduce their footprints and increase efficiency, making them important manufacturing and engineering facilities and training resources. You can divert your investment, “says Calhoun. In a news release.

The news release did not specify exactly what would be involved in Boeing’s plans to reduce Chicago’s space.

Mayor Lori Lightfoot made the following statement in response to Boeing’s announcement:

“Chicago is a world-class city, with 173 companies relocating and expanding here last year and 67 companies making the same decision from the beginning of 2022. Boeing will relocate its headquarters to another city. We have decided to maintain our presence in Chicago. We have a strong pipeline of major corporate relocations and expansions, and we expect more announcements in the coming months. Chicago It’s true that it’s a major hub for a global business that recognizes a diverse workforce. It has a vast infrastructure and a thriving economy. “

The Illinois Governor JB Pritzkar’s office has issued the following statement:

“The Illinois incentive for Boeing’s headquarters in Chicago ended in 2017. We wanted to discuss options with the company before the news came out, but within the state, including 300 new jobs. We will continue to support other Boeing jobs. The Navy’s Stingray project is modest. “

In a conversation with the state, sources said Boeing confirmed that the state’s business environment was not the deciding factor in the decision to relocate its headquarters.

Boeing relocated World Headquarters from Seattle to Chicago Back in 2001..

The company also has a large hangar at Gary / Chicago International Airport to accommodate several corporate planes.

At that time, attracting Boeing to Chicago was a very competitive process.

Then-Gov. George Ryan was at the bottom of the stairs to greet Boeing executives who chose Chicago at the time. Charlie DeMar of CBS2 caught up with Ryan on Thursday.

“We provided them with everything they could and closed the deal, and they came in. It was a great program,” Ryan said. “I’m sorry to hear that they’re leaving.”

Governor Ryan was instrumental in taking Boeing to Chicago. The plane maker was offered a controversial $ 60 million tax deduction package over a span of about 20 years. However, as the Pritzker office points out, these incentives are currently out of date.

“If I didn’t think it was good for Illinois, the deal wouldn’t have been closed,” Ryan said.

Paul O’Connor, then Executive Director of World Business Chicago, led the city’s marketing efforts to defeat Dallas and Denver and seduce Boeing.

“If it felt like a championship season, everything was together,” O’Connor said.

He chose to focus on how Chicago benefited from the return of Boeing in 2001.

“We will need to put it in the context of all the goodness they have achieved and how strategically they have lifted us in 20 years,” O’Connor said.

This move also happens when the company faces some controversy.this is 737 Max passenger plane Grounded after two crashes that killed hundreds of people, due to production flaws 787 Dreamliner..

Joe Schweetermann, a transportation expert at DePaul University, said:

Schwittermann added that in a sense the reality didn’t live up to expectations when Boeing moved its headquarters to Chicago.

“It was the big wings of our hat that Boeing was here, but I think Boeing’s magic never reached what they wanted. Their hearts were still in Seattle.” Schwitterman said. “It’s a blow to our city, that is, to our ego, you might say.”

“People should just move on, they should move forward boldly and move on to the next chapter,” O’Connor added.

Boeing was founded in Seattle in 1916 by William Boeing, a descendant of wood who first built a wooden seaplane.

Boeing relocates its headquarters from Chicago to Arlington, Virginia

Source link Boeing relocates its headquarters from Chicago to Arlington, Virginia

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