Cities Race For Amazon
By: Robert Haga
About a month ago Amazon announced that they would be constructing a HQ2 in North America. Amazon is one of the biggest and fastest growing companies in the world today. They are the biggest online shopping market in almost every industry except food, which could change after their recent purchase of Whole Foods, and after their announcement to build a new Headquarters in North America; 238 cities all over the continent are trying to get Amazon in their city. So why are so many cities trying to get Amazon to build in their area?
The benefits to Amazon economically are undeniably substantial. Amazon’s first HQ in Seattle, Washington has boosted their economy as the company has grown. On Amazon’s website they give the affects what their first HQ has done in the last 6 years, “Amazon estimates its investments in Seattle from 2010 through 2016 resulted in an additional $38 billion to the city’s economy – every dollar invested by Amazon in Seattle generated an additional $1.40 for the city’s economy overall.” $38 billion dollars added to a city's economy due to only one company is unbelievable in itself, but taking into account that Amazon projects its new HQ to be even bigger with over 50,000 high paying jobs along with an investment of more than $5 billion dollars in construction of this new facility, there’s no wonder why so many cities are competing for this opportunity.
The magnitude of the facility will cause the construction build process to create tens of thousands of jobs along with tens of billions of dollars in the surrounding area. This will likely require a high populated area with a substantial tech labor force for the tens of thousands of tech jobs that will open up. This is why Dallas, Texas is rated the number 1 choice for the new HQ. Texas in general has some of the best tech schools in America. This is a big attraction for Amazon as one of the hardest parts of choosing a location in finding enough qualified young workers to quickly fill the positions needed. Texas has other attractions as well as their low cost of living and lack of income taxe are some of the reasons for Dallas is considered the number 1 choice. These factors cause Dallas to out rank cities like Boston, Atlanta, and Washington DC.
Cities around the country have been trying things like alternative transportation, business friendly policies, local funding for the business, and etc.. to make them look like a better fit for Amazon’s HQ2, which have caused controversy between their citizens saying they don’t what increased taxes to fund Amazon or new means of transportation which are alternatives from automobiles.
Although Dallas is the number 1 choice on the outside deals can be made that make less likely cities more attractive to Amazon and Dallas is still just one of 238 cities that might get Amazon’s approval.
“Amazon Announces 238 Proposals for HQ2 from across North America.” Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & More, www.amazon.com/b?ie=UTF8&node=17044620011.Parilla, Joseph. “Which Cities Are Well Positioned to Land Amazon's HQ2?” Brookings, Brookings, 8 Sept. 2017, www.brookings.edu/blog/the-avenue/2017/09/08/which-cities-are-well-positioned-to-land-amazons-hq2/.