As the headquarters of another Fortune 500 company pulls up stakes to leave Los Angeles, some in the local business community are asking: Were those who are responsible for business outreach asleep at the wheel?When Northrop Grumman Corp. announced Jan. 4 that it would plant its corporate flag in the Washington, D.C., area, it was a surprise to the Los Angeles County Economic Development Corp., the organization responsible for recruiting and retaining local companies. Officials with the city and the Los Angeles Area Chamber of Commerce also appear to have been taken aback by the announcement.
In a way, the announcement was not a surprise. There has been a trend of major aerospace and defense companies relocating to the Washington area in recent years, including Lockheed Martin Corp. and General Dynamics. Moreover, Northrop’s new chief executive, Wesley Bush, is from West Virginia, and it’s not unusual for a new CEO to move a company headquarters where he wants.
“We should never be surprised at something like this, and the reason we are surprised and the reason this happens is because we don’t really have a consistent outreach program for corporate America,” said Larry Kosmont, a local economic development consultant and the head of L.A.-based Kosmont Cos. “This is a structural failure at all levels for Los Angeles County.”
(READ FULL STORY)