Montgomery County has lost yet another corporate headquarters to Northern Virginia. Argan, Inc., announced yesterday that it has relocated its HQ from 1 Church Street in Rockville to Two Liberty Center in Arlington. The telecommunications and power industry service provider was founded in Rockville over two decades ago. Argan cited the new location's direct access to Dulles International Airport as one of the primary reasons for the move. The firm's stock price doubled, and surged 33% in two days at one point in 2024, and is up about $10 since then, to $104.05 as of this morning.
It's no surprise that Argan, like so many companies, is heading for greener pastures across the Potomac. Montgomery County and Maryland leaders have defiantly refused to construct the long-planned bridge across the river that would provide our own direct connection between the I-270 corridor and the Dulles area. Dulles is the only airport in the region that provides the frequency and variety of direct flights to global destinations demanded by international businesspeople. And let's fact it: Virginia's lower taxes, fewer regulations, and status as CNBC's "Top State for Business in America" certainly didn't hurt.
Northern Virginia has other advantages for a firm that primarily deals with power plants and telecommunications infrastructure. Maryland leaders have forced the closure of 8 power plants since 2012 alone, and the state is now forced to import 40% of its electricity from out-of-state at higher prices to avoid rolling blackouts. 70% of internet traffic around the globe flows through data centers in Northern Virginia. And the Old Dominion has invested far more in highway, air transport, railroads, and ports than Maryland. It's no wonder Montgomery County has failed to attract a single new major corporate HQ in over 25 years.
"We are thrilled with the move to our new headquarters location in Arlington, Virginia," Argan CEO David Watson said in a statement. "We believe the location and layout will accommodate the Company’s continued growth, improve recruitment and retention of employees, and facilitate greater collaboration and a more productive overall work environment. The Washington metro area has a dynamic and robust economy with a quality workforce, and we look forward to leveraging our new location to enhance the experience of Argan’s current and future employees, partners and customers. The Company’s more than 22 years in Rockville, Maryland where Argan was founded, have been both meaningful and productive, and we look forward to continuing our success in our new home in Arlington."
This hurts. Does anyone at the City focus on these kinds of things?
ReplyDeleteTell us how the closing of a small office of paper pushers on Church Street hurts the City. Get a grip on reality. This company is facing a major downfall.
Delete12:16: It's called lost tax revenue. Congratulations - your taxes will be raised to make up the difference. "A major downfall?" Argan's earnings blew past expectations last year. Glenn Youngkin thanks you!
DeleteRockville needs jobs like any other place. This is the HQ for a company with a $1.6B market cap. We should be concerned about losing private sector companies and having more and more office buildings sitting empty.
DeleteThat's a helluva lot of revenue lost from 2,000 sq. ft. of paper pushing. They moved the headquarters across the river to save face, space, and revenue in the down-turned market prospectus. Get a grip, not a gripe dude.
DeleteArgan’s new corporate headquarters location is in the heart of the Ballston section of downtown Arlington, two blocks from the Ballston Metro station. The new offices are also conveniently located near Ronald Reagan Washington National Airport (15 minutes) and Washington Union Station (20 minutes) and offer easy access to Washington Dulles International Airport (25 minutes).
DeleteDavid Watson, Chief Executive Officer, commented, “We are thrilled with the move to our new headquarters location in Arlington, Virginia. We believe the location and layout will accommodate the Company’s continued growth, improve recruitment and retention of employees, and facilitate greater collaboration and a more productive overall work environment. The Washington metro area has a dynamic and robust economy with a quality workforce, and we look forward to leveraging our new location to enhance the experience of Argan’s current and future employees, partners and customers. The Company’s more than 22 years in Rockville, Maryland where Argan was founded, have been both meaningful and productive, and we look forward to continuing our success in our new home in Arlington.”
-David Watson
Location, location, location
11:13: How are they "saving face?" It's a successful, growing company.
DeleteLosing jobs, gaining homeless shelters (Presbyterian church wants to sell one building for 24 hour shelter).
ReplyDeleteRobert is all over this trend as is MoCo Perspective. There is a defiant bunch of leftists that think 2 plus 2 =5 in their warped world of rent control (Vietnam abandoned this idea) and regualtion
ReplyDeleteWeird comment dude.
DeleteThere is no hope for Montgomery County--its a quarter century of business and high net earner flight; everyone glosses over that Marriott, which was about to leave until given everything it asked for--axed 833 high paying jobs here. They agreed to maintain 3000 plus high skill jobs in exchange for incentives. That is one of the most damning statements and once this administration is done with its federal RIFs and clawback efforts, I just can't imagine what is left other than burned out lefties and boomers that cant let go of their failed political philosophies.
ReplyDelete