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."
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