Competition to woo second Amazon headquarters intensifies
Amazon narrows the finalists competing to secure an expected 50,000 jobs and $5 billion in investment associated with its second headquarters.
SAN FRANCISCO – The East Coast bested the West Coast in Amazon’s second-headquarters sweepstakes.
The online retailing giant announced the finalists for its so-called
HQ2 on Thursday, a surprisingly long list of 20 cities and states culled from an unwieldy 238 that began the process.
The nearly two dozen now double down to compete for a $5 billion capital investment and 50,000 new techoriented jobs.
But that’s not all. By Amazon’s own calculations based on the impact its Seattle HQ had on that city between
2010 and 2016, the new headquarters promises to add $38 billion to the local economy, create 53,000 non-Amazon jobs and boost the personal income of non-Amazon employees by $17 billion.
The 20 finalists met Amazon parameters that its HQ2 be in a metropolitan area with more than 1 million people, have a “stable and businessfriendly environment” and be in “urban or suburban locations with the potential to attract and retain strong technical talent.”
Some caution that having Amazon plunk itself down in your city can come at a cost.
“In the short term, they’re going to need tech talent and the cultural amenities to attract them, but in the long run they’re going to need room to grow,” says Jeffrey Shulman, professor of marketing at the University of Washington in Seattle who has studied Amazon’s impact on the city.
The successful finalists appeared to sell Amazon on a winning combination of
available talent (particularly in the software/IT space), infrastructure (otherwise adding 50,000 new employees could spell gridlock), community vibe and financial incentives.
Here’s a quick look at the strengths and possible weaknesses of the remaining HQ2 contenders: Atlanta. Affordable housing and other quality-of-life issues already have lured large companies to the area. Possible negative: Traffic. Austin. Austin plays host to startups as well as huge tech confab SXSW. The capital city also boasts fairly affordable housing. Austin is also home to Whole Foods, which Amazon owns.
Possible negative: May be in the running for Apple’s new hub. Boston. Access to talent looms large with 300,000 college and university students.
Possible negative: A distinct lack of boosterism.
Chicago. Has a huge talent pool, courtesy of many universities in town and nearby. Has plenty of housing in the greater Chicago area and a robust transit system.
Possible negatives: Crime rate, reputation for political gridlock.
Columbus, Ohio. It has Ohio State University, and at least a third of the population holds a bachelor’s degree. The city already supports 20,000-employee JPMorgan Chase.
Possible negative: Cold weather.
Dallas-Fort Worth. There’s affordable employee housing, talent-producing universities and no state income tax.
Possible negative: Rival Austin brims with a hip, techy vibe.
Denver. It’s offered incentives that could total $100 million, such as in-state tuition benefits for employees. Other pluses include a solid tech talent pool. Possible negative: Traffic.
Indianapolis. Companies ranging from Salesforce and Angie’s List already call the state home. Another big plus: affordable living.
Possible negative: Difficulty attracting coast-based tech talent.
Los Angeles. Recruiting talent would not be an issue in an area that’s home to more than 20 million people, some of whom are graduates of institutions such as Cal-Tech and the Univer-
sity of Southern California. Possible negatives: Traffic, high housing costs. Miami-Dade. Sunny South Florida weather, dozens of universities and affordable housing.
Possible negative: An in-progress public transportation system. Montgomery County, Md. This northern suburb of the U.S. capital has access to the area’s Metro subway line and proximity to great universities.
Possible negatives: Traffic, housing and competition from D.C. Nashville. A strong business environment with no personal income tax and a reasonable cost of living.
Possible negative: Public transit woes.
Newark. It offered $7 billion in tax incentives and could provide less-expensive housing for employees living in the New Jersey-New York area.
Possible negative: Competition from New York City.
New York City. As New York Mayor Bill de Blasio says, “We are the global capital of commerce, culture and innovation.” Alrighty then.
Possible negative: In the Big Apple, Amazon is just another big company.
Northern Virginia. There are several business-friendly and tech-rich areas in the region.
Possible negative: Competition from Washington, D.C.
Philadelphia. The area boasts universities and a vibrant music and museum scene. Housing is relatively affordable.
Possible negative: Poverty rate.
Pittsburgh. The Steel City is home to one of the nation’s top-ranked computer engineering schools, Carnegie Mellon University.
Possible negative: Has a population of just 300,000. Raleigh, N.C. The city already has a well-known business hub, the Research Triangle Park.
Possible negative: Growing pains in the Triangle. Toronto. The Canadian city has talent, quality of life and good transportation.
Possible negative: Not in the U.S. Washington, D.C. It would be near The Washington Post, owned by Jeff Bezos, and have access to the corridors of political power. Possible negative: High cost of housing.