Northrop Grumman Corp. is moving closer to a major client--the federal government. The global company said it is pulling up stakes in Los Angeles and becoming a beltway bandit. It marks the departure of the last major aerospace firm from the industry's birthplace in Southern California.

The shift will put Northrop's top executives near its biggest U.S. military and intelligence customers, as well as the congressional holders of the military's purse strings.

"We are a global security company and when you look at where our largest customer base is located, it's in the Washington, D.C., region," said Wesley Bush, Northrop's chief executive and president.

Hard to imagine exactly why the company has to be within a stone's throw of this big client. The Wall Street Journal reports that it is part of California's decline in popularity as a prime location for large, highly technical companies.

Northrop Grumman is locating about 300 jobs to the DC area. It still will have more than 20,000 employees in the Los Angeles area, according to the company. Nevertheless, Northrop Grumman joins a growing exodus of corporations from the state plagued with economic problems. In addition to the aerospace and defense industries, there has been an exodus of other industries, including film production.

For more on Northrop Grumman's move:
- See this Wall Street Journal article

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