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Message
Only a few cities could actually accommodate Amazon's second HQ
Posted on 9/8/17 at 9:09 am
Posted on 9/8/17 at 9:09 am
LINK
TLDR:
quote:
The scale of Amazon.com Inc.'s undertaking -- over time, needing up to 8 million square feet of office space and 50,000 well-paid employees -- is unlike anything seen in recent memory. The only thing comparable would be cities bidding for the Summer Olympics. Amazon's Request for Proposal narrows the list significantly in terms of the number of cities realistically able to bid for such a project. First, the labor force needs for the headquarters dramatically shrink the number of metro areas able to bid. Amazon says it's considering metro areas of a million or more, but realistically to provide 50,000 employees a metro area is going to need to be significantly larger than that.
quote:
Consider a place like Pittsburgh. Its metro area is 2.35 million people, and its labor force is 1.2 million. But the size of its labor force hasn't grown in 25 years. Even with the talent its well-respected universities produce … is Amazon, a company that thinks of growth in terms of decades, going to locate a headquarters in a place where it might have to hire over 4 percent of the metro area's labor force with uncertainty over whether that labor force will ever grow? The next factor that will reduce the list of possibilities is the need for a suitable international airport. It's hard to say what exactly constitutes an international airport -- you can fly from Hartford, Connecticut, to Canada -- but as with everything Amazon does, higher volumes or higher capacity will probably be seen as more favorable. The list of most-trafficked international airports is full of the usual suspects -- large coastal cities and major airline hubs. One additional factor to consider is that the airlines with the highest market share in Amazon's hometown of Seattle are Alaska Airlines, which serves primarily West Coast destinations, and Delta Air Lines, which is based in Atlanta.
quote:
Once you've winnowed the list to large metropolitan areas with robust international airports, other considerations come into play. Amazon says "a highly educated labor force is critical and a strong university system is required." Would that take cities like Dallas and Charlotte out of consideration, or would being a couple hours from highly respected universities be good enough? Costs are stated as an important factor as well. It's "easy" to identify large metro areas with robust airports and deep, educated talent pools, but those tend to be tremendously expensive. Being in Seattle, Amazon surely sees how much being based in Seattle, which is cheaper than the San Francisco Bay Area, helps with recruiting. It might make sense for an expansion of five thousand employees, but will Amazon really try to hire 50,000 employees in a metro like Vancouver, San Francisco, Toronto, Boston, New York or Washington -- an area that's already expensive? Tax incentives play a role too. To some extent this is a question of "who wants it the most." For all other considerations, Chicago would be an attractive destination. But the city and state are broke. Are Chicago and Illinois willing to offer billions of dollars in tax incentives, trying to compete with younger, "hungrier" Sun Belt metros? And Chicago's another metro area with no clear prospects for labor force growth, even if its existing talent base is large and deep.
TLDR:
quote:
By my tally, the options are: Toronto, Boston, Washington DC, Atlanta, Dallas or Denver.
Posted on 9/8/17 at 9:11 am to RedRifle
Talked to a tech recruiter at an event at Fenway Park last night. She was pretty optimistic about Boston being on the short list to land Amazon.
Would be a huge get, along with landing GE this past year.
I also learned that Amazon already has offices in Cambridge, which I honestly had no clue existed.
Would be a huge get, along with landing GE this past year.
I also learned that Amazon already has offices in Cambridge, which I honestly had no clue existed.
This post was edited on 9/8/17 at 9:14 am
Posted on 9/8/17 at 9:11 am to RedRifle
Dallas is the answer with Denver being a strong candidate
Posted on 9/8/17 at 9:13 am to RedRifle
The case for Atlanta is pretty strong, I think. We'll see what happens.
Posted on 9/8/17 at 9:13 am to 14&Counting
I would have to agree Dallas seems like the best option
Posted on 9/8/17 at 9:13 am to RedRifle
There was actually an article in the Advocate trying to tell us what Louisiana has to do to get Amazon to come here.
I mean I knew the Advocate was proficient in fiction....but they delved into a true fantasy land to suggest that there is anything Louisiana can do to get Amazon to come here
I mean I knew the Advocate was proficient in fiction....but they delved into a true fantasy land to suggest that there is anything Louisiana can do to get Amazon to come here
Posted on 9/8/17 at 9:13 am to RedRifle
Nuh uh!
Scruffy heard NOLA was a front runner.
Scruffy heard NOLA was a front runner.
Posted on 9/8/17 at 9:14 am to RedRifle
quote:
First, the labor force needs for the headquarters dramatically shrink the number of metro areas able to bid. Amazon says it's considering metro areas of a million or more, but realistically to provide 50,000 employees a metro area is going to need to be significantly larger than that.
I think that's making an incorrect assumption that all 50K employees need to be come from the metro area's existing labor force.
Amazon will be sending many (probably thousands) of their current employees to get it started, and it's going to draw talent from all over the country.
Posted on 9/8/17 at 9:14 am to RedRifle
I think that "50,000 employees" number is bullshite.
This post was edited on 9/8/17 at 9:32 am
Posted on 9/8/17 at 9:14 am to RedRifle
Dallas, Phoenix, and Jacksonville FL come to mind.
Posted on 9/8/17 at 9:14 am to RedRifle
quote:
with uncertainty over whether that labor force will ever grow?
50,000 specialized jobs are going to require people moving around regardless of what city Amazon locates.
Posted on 9/8/17 at 9:15 am to Tyga Woods
quote:
If think that "50,000" employees number is bullshite
It is to some degree. I do think this will result in tens of thousands of jobs and have a significant impact on the housing market and infrastructure wherever they choose to locate.
This post was edited on 9/8/17 at 9:16 am
Posted on 9/8/17 at 9:15 am to RedRifle
Lol at the people who actually thought Louisiana could support it
Dallas will probably get it, the housing market will be even worse for buyers, and I'll have to gtfo
Dallas will probably get it, the housing market will be even worse for buyers, and I'll have to gtfo
This post was edited on 9/8/17 at 9:17 am
Posted on 9/8/17 at 9:15 am to RedRifle
Nashville meets all of the criteria the author lays out. Austin probably does as well.
Posted on 9/8/17 at 9:16 am to 14&Counting
quote:
Dallas is the answer
Texas is usually a pretty good bet for business friendly govt.
quote:
Denver being a strong candidate
I see the appeal but I'd be careful here
I'd wonder why they wouldn't consider somewhere like Nashville as well, but I agree if I had to pick a pole sitter it would be Dallas probably.
Posted on 9/8/17 at 9:16 am to Scruffy
They're putting it in Jazzland to keep up with the "employees need to have fun" theme.
Posted on 9/8/17 at 9:17 am to AnonymousTiger
quote:
Nashville meets all of the criteria the author lays out. Austin probably does as well.
Did you actually READ the article? Nashville? Hell no.
Posted on 9/8/17 at 9:17 am to RedRifle
That's absurdly wrong. First off, its not like all 50,000 will start right away. It will be a couple of thousand the first year and grow from there. You don't get to a number like 50k until year like 10.
Secondly, a large chunk of the first group will be current Amazon employees moving in from elsewhere. Again not affecting the current market.
Lastly, tons of their employees will be coming from all over no matter the location. So the idea that the location has to provide anywhere close to all of those employees is simply not even close to being right.
I disagree with it being anywhere west of the Mississippi, logistically that wouldn't make sense for a 2nd location given Seattle as their home. Atlanta makes the most sense geographically, but somewhere on the east coast, Nashville, Charlotte, etc. would also.
Secondly, a large chunk of the first group will be current Amazon employees moving in from elsewhere. Again not affecting the current market.
Lastly, tons of their employees will be coming from all over no matter the location. So the idea that the location has to provide anywhere close to all of those employees is simply not even close to being right.
I disagree with it being anywhere west of the Mississippi, logistically that wouldn't make sense for a 2nd location given Seattle as their home. Atlanta makes the most sense geographically, but somewhere on the east coast, Nashville, Charlotte, etc. would also.
This post was edited on 9/8/17 at 9:18 am
Posted on 9/8/17 at 9:17 am to RedRifle
I said Denver in the original thread and will say it again.
Lots of labor, lots of land, friendly local and state gov and legal MJ. Recreational ops of interest to their work force and lots of west coasters already living there.
I am the biggest cheerleader on here for LA but we better not waste a bunch of money chasing this. We don't stand a chance.
Lots of labor, lots of land, friendly local and state gov and legal MJ. Recreational ops of interest to their work force and lots of west coasters already living there.
I am the biggest cheerleader on here for LA but we better not waste a bunch of money chasing this. We don't stand a chance.
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