Dear Amazon, We Picked Your New Headquarters for You
nytimes.com
nytimes.com
Not to mention its proximity to NYC and Washington, DC via Amtrak (~1h20m to NYC, ~1h50m to DC)
Transit: http://www.septa.org/site/images/system-map-1400-lrg-03.30.1...
Locations w/ Tax Abatements: http://navyyard.org
Regarding the talent pool, as someone who works in the Philly area, I agree it has a lot of well regarded engineering schools nearby, but tech talent doesn't necessarily stay here in the quantities Amazon might find compelling.
Granted, it's a chicken-and-egg issue. The top talent tends to go where the top jobs are, and if the top jobs are in Philly, the top talent might be more inclined to stay.
I don’t think it’s quite as simple as cheap houses.
[edit: I see now TFA settled on Denver, but I don’t think that invalidates my point]
A plan to expand it a few years back was killed by local opposition. There was supposed to be an alternative plan developed after that, but I'm not sure whatever happened to it.
I don't know what the time frame on an expansion would be or if the city would be willing to consider it, but as it stands the airport is a real Achilles heal.
As an airport, it's not that bad; I flew through there plenty of times back when I traveled more and did most of my flying on US Airways. Most of the northeastern airports have capacity issues, but PHL is -- no matter how bad it might seem to you now -- much better off than JFK, EWR or even something further west like ORD.
Though if, as you indicated previously, you want to insist only on cities which currently have nonstop flights to PVG, your choices are very slim. Only three US cities east of Detroit have that. Two of them (New York and Boston) either cannot provide the space or would provide it only at ruinous cost, and the other (Atlanta) has one of the worst "transit" systems I've ever experienced. And honestly, if Amazon were to set up somewhere else in the eastern US with an existing international-capable airport, you can bet Hainan and one or both of China Eastern and China Southern would start sending 787s there pretty quickly. As much as people like to complain about it, that plane was a game-changer, and a lot of secondary-tier US cities/airports now are getting nonstops to Asia that never would have happened before.
Though honestly if we're going to decide this on airports, I'd say Detroit is the clear front-runner, probably with Minneapolis not far behind, in terms of access to the rest of the country and the world, and letting Amazon standardize corporate travel on Delta (which is hubbed at Seattle, and at both Minneapolis and Detroit).
That said, Philly is still moving forward with their expansion/improvement plan and fundamentally is one of the few major airports in the region that can practically expand without insurmountable environmental/political opposition.
If PHL is handicapped in some way, I would say the ground transportation experience is one of it's larger problems.
- It has a parking crunch so it runs out of parking, or you wind up with a situation where even if you're a high-earning person, you're still going to have to park in economy and lose a bunch of time with a slow bus to the terminal because the garages are full.
- The Airport Line is infrequent, so transit doesn't work for anyone who values their time.
- Not unique to Philly, but the traffic situation on the highways means Uber/Lyft don't solve transportation issues to the airport unless they put the HQ in South Philly.
- Switching terminals is a bus or walk, no people-mover or the like. There are at least post-security connections.
Why would Amazon want that rule? Wouldn't it just mean there's more competition for employees? It strikes me as the type of rule put in to ensure their secret favorite gets chosen.
I interpret that more as a political requirement, where city and state governments are strongly pro-business (anti-union?).
Amazon would rather pay a higher salary for someone with experience than train someone.
Philadelphia doesn't have tech scene like SF or Seattle, but it's well positioned for the next generation for several reasons.
Philadelphia has among the best, or the best, medical institutions associated with upenn and the children's hospital of Philadelphia, and both have signaled that they're very amenable to startups and new ideas. If you wanted to build a medical tech company that's not in San Francisco or Boston, it's great. It has a lot of extraordinary livability: extremely walkable, great public transit, and affordable. And while I'm not defending our politics per se, it agrees with the politics of many developers in NYC and the bay area. It has phenomenal art and food scene that's not copying other cities.
Developers in NYC tired of paying absurd prices for rent would move here in a heartbeat for the right job (and other opportunities if that fell through). In Williamsburg, my grad school roommate and I paid 2400 (plus broker fees) for a 500-700 sq foot apartment, each bedroom big enough to hold a queen sized bed + 3 feet, and a "kitchen/living room" (I'm being generous) that housed a loveseat and not much else. And it wasn't fancy, by any stretch: a five floor walkup with an alley view. It was still 30-80 minutes to work depending on the time of day. In Philadelphia you could live within walking distance to anywhere for half to 2/3 that in a much nicer apartment or townhome: check Zillow/Redfin/Apartments.com if you'd like a fair comparison. Good suburbs are 20-30 minutes by car and 40 minutes by trains that come every 10-20 minutes.
The biggest downside is that there are not as many backup tech jobs, but compared with Chicago, I see it much easier to bring developers here. The ease of moving here is not hard: I travel to NYC 2-3 days/week, the bus is 10 dollars and takes 2 hours to 6th/Grand, the train is 45 dollars and takes 70 - 90 minutes.
I loved it in my twenties. The food and drink scene in DC is nothing in comparison, and there is a yuppiness here that is interminable. But too many yoga and spin-class studios and too-expensive beer aren't going to literally kill me. Philly earns all of its bad nicknames.
I've been hearing a ton about this because this crew has been steadily recruiting from there to Denver.
The comments they say when they are doing this:
Philly has worse crime by far. The weather (measured in number of sunny days) is obviously worse. Outdoor activities are limited. Yeah, you can get to pretty places, but it's a few hours drive for the beach or mountains. Culturally, it's not a place that jumps out on the radar. Denver wasn't either, but the weed legalization kind of helped highlight that this place is a tolerant, open-minded location to people who automatically thought of a redneck mountain town.
;)
I can't speak for others, but I'm more fit because I live near mountains and other outdoor activities. I don't choose to live near those things because I'm fit. The causation is mostly the opposite of what you're implying.
Getting out and into nature will change your lifestyle for the better, no matter what your current abilities. And there are plenty of ways to get out there that don't require any fitness level whatsoever. Sitting in a boat and fishing, RV camping...I spent much of the past few weeks hiking in the Sierras and most of the people in our campgrounds were retirees.
Philly is also a relatively short train ride away from NY, DC, Baltimore, and half a day's drive from everyplace in the Northeast.
When I moved from Philly to Boulder, it took me only 3 days to notice that everyone in CO was 'fit' as opposed to Philly, where most people are (generally) shockingly fat and a smelly city/airport. Denver can be pretty stinky, but nothing like anything south of South St. or just outside of University City. Generally, CO had more options to date people than blacking-out in some 'Irish' bar in South Jersey. That said, I liked the demeanor of people of East Pennsy and South/Central Jersey more than Boulder; they were more 'real' and didn't hide feelings or dis/likes at all. You got what you saw, while Boulder/Denver tends to be more 'shy' in demeanor and true feelings. YMMV
But metro Detroit has a population of 4.5 million so the Times either was sloppy with their criteria or they deliberately snubbed Detroit.
Detroit may be a dark horse in this competition but with Dan Gilbert going all out to win I don't think you can count them out just yet even if the New York Times hastily does.
It'll be a uphill battle, but I think Detroit is a serious dark horse.
When I was running my own company, I came quite close to looking at spots there. I was in Plymouth (30 miles west), but needed lots of bandwidth at the time, and DC hosting wasnt an option.
FWIW: you could do air cooled DCs up and down the Michigan west coast. Wonderfully cool air coming off a natural chiller, Lake Michigan, cheap power, excellent transportation infrastructure, very business friendly state government ... though sometimes they lurch the other way, most of the time they don't do stupid things.
I tried gauging investor interest in this model of DCs a few years ago ... few thought DCs were a growth industry, and clouds/hosting was a fad. Go figure.
It's a huge gamble on a city that is pulling itself out of bankruptcy.
Shinola has been capitalizing on Detroitness. So has Chrysler, successfully.
Things are moving back from burbs into the city and gaining visibility. These are the successful test cases. "Imported from Detroit"
(The bankruptcy itself hasn't prevented much from improving in Detroit. The bankruptcy turned out to be the launchpad.)
Also, please don't crucify me for admitting that I voted for Trump. I usually don't tell people IRL, because most left-leaning folks are extremely intolerant about it, many to the point of anger/hatred and possibly violence. If you want to know why you can't find the trump voters out in the real world, I think that's one of the big reasons.
Not sure about the 4 year damage offset but hey, it is better than voting for him because wall
Also ... sigh, I've already got negative two on that post :( The rain of judgement is why we're all silent.
One more note: I'm not saying that I expect the government to achieve perfect monitoring -- just like it would be impossible to catch all speeders, it would be impossible to catch all illegal border crossings -- but I am saying that when the government does know that a law has been broken, it should apply a consistent response that is compliant with the laws that have been passed by a congress and signed by a president.
Trump would just be expanding it. Likely to around a half of the total border (Much of the border is close to impassable, due to mountains, desert, ect).
(There's an argument about whether “stable business climate for growth" really can be boiled down to just "job growth". But is Detroit really going to do well on any kind of proxy for stable growth?)
But ultimately they are probably right, Denver deserves it. Great quality of life, smart governance, good markets, healthy living and room to grow. Lots of people moving to Denver just like Seattle so it is very close to the same style of city. It is very, very easy to attract people to Denver.
PS - I actually currently live and work near Grand Rapids. I have 11 acres that didn't cost me a fortune, and I love it. GR would probably have also failed their 'amenities' filter, which I think is also wrong - any place with broadway, concerts, sports teams, good restaurants/breweries/bars etc. is probably good enough for most young people.
I think there are a lot of workers who would like to live on that much land, but it's just not sustainable. If 50,000 people each lived on 10 acre plots, the amount of land they'd need to live would exceed that of a large city. That's 780 square miles, larger than the 600 mi^2 of of Houston which has a population of 2M people.
A failure to understand this leads to all kinds of ridiculous impressions and conclusions.
This is not the Detroit I went to grad school in, (mumble) 20+ years ago. Very different place, lots of investment. Ann Arbor is a dense tech mecca. East Lansing (90 miles away) less so, but between Wayne State, UofM's, MSU, Central Mich, MTU, and some of the smaller schools, there is a very strong engineering and computing culture. One that is frequently overlooked.
One thing I will note is a paucity of investment capital in the region, and a strong reluctance on the part of costal VCs to invest in fly over country.
However ... cost to hire/retain people here is very low compared to the coasts. Given how much the percentage of cost is in people, this should be a factor in any companies calculation on where to move.
Land/facilities are cheap. Transportation is ok ... we still have to work on local transit, as decades of mismanagement if not worse, have left the public transportation options in terrible shape. However, there are strong pushes from Dan Gilbert, the Illich family, and many others for modern regional transport. There are light and heavy rail all over here.
And, not for nothing ... we have 4 real seasons. Though, in my first few weeks out here (mumble) 30 something years ago, I surprised how they could all be on the same day ...
Detroit should be in the mix. As a leading contender. All of the rust belt should be.
It's easy to recruit people here. You fly them out (at any time of year, even winter) and the weather is typically sunny and pleasant. (yes, in the winter, it's usually sunny, dry, and mild temps)
Good luck doing that in Detroit.
That said, I wouldn't mind seeing Amazon HQ2 locate here. While I doubt I would personally want to work for Amazon due to its reputation as being a lousy place to work, it would probably boost the tech scene and salaries. I think Denver's cost of living is going to continue its steep trajectory with or without Amazon.
1) Land is available, but labor and building companies are still not fully recovered from the 2008 bust, and this has created a sharp supply issue with new housing to accommodate the hordes of newcomers.
2) This issue is quickly on the way to being remedied, because the housing prices are high enough to produce huge profits for builders, and the national companies are quickly getting their infrastructure in place.
3) If anything, housing prices are going to retreat downward, (probably not a crash due to demand) and Amazon would help cement the decision for big building companies to devote more assets to correcting the supply issue.
http://www.seattletimes.com/opinion/editorials/end-of-amazon...
I'd think twice about investing in anything under her sway.
The Seattle mayoral election candidates are all well over on the left. There isn't even anyone to vote for if you aren't on the left.
And really, Pittsburgh is fantastic. Good schools, good commute even if you live in a suburb, great food and alcohol scene, with an arts scene and history to rival any major city (Carnegie and Warhol for starters).
1. Beautiful, unique geography, with a ton of outdoor stuff to do (granted, at least in summer). 2. Gorgeous architecture all around. 3. Great public transportation. 4. Lively nightlife, lots of options. 5. Relatively cheap
Pittsburgh basically has infrastructure for a city twice as big, but has managed to transition from its industrial past better than most rust belt cities.
Pittsburgh is probably really close to ideal. I can't really think of much of a downside.
It has a lot of universities, and the programmers are quite good (the ex-CTO of Modcloth? had a video where he pointed out that the Pittsburgh office was quite a bit better than the SV office). Your factory workers will be out toward the airport and your knowledge workers will be downtown. It's a very old city, so it is quite a bit more pedestrian friendly than most. And, because it's old, it has a really good arts scene. And Pittsburgh has a woefully underutilized airport.
The only downsides are weather: 1) Lack of sunlight--Pittsburgh is almost as bad as Seattle in that respect and 2) Winter--Northeast winters SUCK.
I would say quality of life is great for anyone that likes to do anything outdoors: fishing, skiing, mountain bikes, dirt bikes, etc.
And there's a pretty strong community of software engineers here.
Lots of growth here in the last 5 years especially. Many long-time locals are complaining about the cost-of-living going up, though.
I guess in LA we're somewhat lucky that Metro can pretty much do whatever they want.
But Seattle is trying to impose a 2.5% income tax on high earners. This might be Jeff's way of reminding them they have to compete to keep his business around.
Also, a 0% income tax rate makes a HUGE difference in attracting tech workers who earn $200k+...
I'm just here to spy on what the well-to-do and techno-utopianists are up to and want to inflict on the rest of us in the future. ;-)
I expect it to end up in a former rustbelt or midwestern city explicitly eliminated in this article in the 'strong job growth' phase. Dallas, Chicago, Minneapolis, Detroit, Philadelphia.
I'm using the CSA definitions because I think that's a better way of comparing wildly different cities.
My experience being that neither housing costs nor commute times being horribly bad around CLT - this bums me out. It's actually a great city with lots of nature around it, ATL is 4hr drive, housing costs in nearby areas (Fort Mill, SC e.g.) aren't anywhere near as bad as say Atlanta suburbs. It's not NYC to be sure - culture wise not very hip but I did not think the mid-career experienced people Amazon would be hiring would mind that at all.
Maybe the NYT was too literal when they considered CLT or maybe I don't understand what exactly the sacrifice would be in terms of housing costs and commutes.
Downtown has never really had any appeal for an under-21 besides Discovery Place (is that even still around?) which is more geared for the pre-13 age group. Post-21 more recently it seems to have been revitalized but having been spoiled by Raleigh, still feels sterile and kind of bland. Even in NoDa, where all those creative people have already been priced out of that community.
I'm definitely still colored by my hatred of bland suburbia of that city, which afforded teenagers absolutely nothing to do except shop or watch movies in the theatre. It really is geared for the traditional suburban parent types through and through. Compared to other parts of NC with a diverse cultural scene (Asheville and Raleigh) Charlotte drops the diversity for an increased price.
It also has the unfortunate location of being inside NC, whose state politics have been anything but sane the past half decade, and the local college is also overshadowed heavily by Chapel Hill, Duke, and State in the Triangle area. That's the metro area I would expect Amazon to pick over Charlotte, as there's a lot of non-hip tech companies already established there. And even a few hip ones like Epic Games.
I agree that it should stay in the running. I'd like to see more tech in the south - there's too much on the West Coast.
The nature around Denver definitely beats CLT though, especially if you like mountain sports, but NC also has beaches.
Charlotte is just meh. It's not a quick drive to beaches (hours) , and it's an hour or more from the mountains. The business culture is banking oriented, the downtown/city center is crime-ridden, and it's heavily suburbanized.
The airport is good. That's it. Otherwise Asheville or Raleigh would both be better. Asheville is a non-starter due to it's small size though.
I used to live in North Carolina. My son was born there, and it's where I met my wife.
Charlotte is a terrible place for Amazon.
The weather isn't remarkably good, gay employees can't get married, the public schools are shit thanks to the state, the traffic is bad, and it's culturally not noteworthy. Sorry. It's just not a good location. Raleigh could do it, but isn't big enough, and again, not a culturally attractive spot.
In fact, I think the lack of gay marriage rights kill both Austin and Charlotte.
Is this still true? I thought the Supreme Court decision applied to the whole country?
Still, the state gov't isn't kind to LGBTQ people.
Additionally, I think this is a game. They've already decided where, they just want leverage to get a better deal there. This isn't like the Giga factory where they just need manual labor so anywhere would work. I'll be interested to see where it ends up though.
But guess what? Recent college graduates are happy to move to places with better weather and lower costs of living, and they do. We interview top tier people looking to relocate from Boston all the time.
I say that as someone who loves Boston, and especially like the culture and people.
Sometimes, you do the right thing, just because it's the right thing to do. It wasn't an investment. It was just giving back to the community that housed us.
I guess you could argue that it improved employee morale? I don't think any of our employees even had kids on the team.
Microsoft and Boeing anchor Seattle next to Amazon, that makes Seattle a very stable and fertile place. If Amazon moved to, say, St. Louis? What else is there to balance it out? Budweiser?
Cell coverage would certainly be fixable, though, if the local officials commit to reasonable planning approvals, and can convince carriers to play ball.
Well, there's the Kindle Whispernet thing. I'm in Australia and was impressed when the first Kindles came out and "they just have 3G, no configuration/questions asked - and Wikipedia is free." The high-level involvement and agreements required for worldwide "just works" connectivity (which is not technically amazing, but politically impressive) means that fixing local cellular would likely be a shoo-in and require no drawn-out anything. Chances are the HQ building(s) will have cell towers factored in at the blueprint level.
Yes it is nice to have small groups together on regular basis in meetings, integration sessions, brainstorming but for the most part jobs are virtual even in an office today with chat, email, text, phones, video chat, etc. Everyone in one location is both a single point of failure and doesn't scale well to employees changes, i.e. people move frequently, skill is available in different technologies not always in one location, etc. Better virtual communication in companies even on-site is needed, being in one place without that can actually put a damper on performance and ability to ship.
Plus there's the redundancy benefit -- if the Pacific Northwest suffers the catastrophic earthquake they are predicting, Amazon's HQ2 will live on (and make a fortune shipping supplies to the area).
If computing works as an analogy, decoupling a system enough to spread across two servers without one being the true master/head is already half the battle. But you'd rarely design a distributed system only to run it on two servers. The synchronization overhead wipes out most of the gains. Once you have the architecture, you might as well move to commodity servers that are collectively cheaper and more powerful than two top-of-the-line servers.
I wonder if there is an organizational equivalent of the CAP theorem.
The best way to get one is by having major players in the industry set up shop there. Cities hope the next big tech company will be in their city, but lots of the employees that switch companies to help startups grow come from top companies and it is way easier to get people to switch companies if they don't have to move.
Seattle has become a good tech hub due to amazon and microsoft.
I think whatever city wins this will have a massive long term tech hub boost because of it. This will probably be many times better for a cities economy than some factory.
Recall Microsoft moving all of their admin stuff to the Midwest somewhere.
"The jobs will likely be broken down into the following categories: executive/management, engineering with a preference for software development engineers (SDE), legal, accounting, and administrative." [1]
SDE is clearly mentioned but who know the actual distribution.
[1]: https://images-na.ssl-images-amazon.com/images/G/01/Anything...
So I would pick this area if I was them. Though not sure how I'd personally feel about prices and traffic going up even higher with Amazon's second HQ moving in.
Traffic is still a nightmare and housing costs are pretty bad compared to most cities, but there is a lot of tech talent here and wages seem lower than NY, Seattle, and the Bay Area.
NOVA is liberal, but Virginia is business friendly, unlike DC and MD. There is already the big NE Virginia AWS here, and I'm pretty sure most of the governments and intel communities AWS infrastructure is also housed close by.
It's an AWFUL place to build an HQ, but Amazon might do it anyway.
1) Salaries are artificially inflated by competition from the Govt and Govt contractors.
2) Traffic is nightmarishly bad.
3) Housing is incredibly expensive
4) Tech skills aren't as high as the stats indicate. The gov't and contractors have an amazing way of creating people whose titles indicate they know what they're doing, but they don't. See healthcare.gov fiasco for an illustration. A senior data engineer in DC is someone who knows SQL and Informatica, as opposed to someone that can actually do real tech. The intelligence agencies have awesome talent, but they have enormous salaries inflated by their security clearances and you're not going to get them.
5) Weather fucking sucks. I lived there 8 years, it sucks.
6) Quality of life just isn't good. Average commute times and cultural amenities are bad.
Yeah it's a mix of tech companies and gov. + gov contractors. A lot of people seem to work for the "State Dept." here (cough CIA cough) or other such agencies.
Tech talent is varied as you say. There are a lot of tech companies, some of Amazon's AWS is here, and there Microsoft, Google and others. They are probably dwarfed by Lockheed, Booz, Northrop and "We put butts in seats" ManTech but overall at least the NoVa area seems tech-y enough.
Traffic is not bad if you don't have to get on the beltway or go all the way to DC in rush hour. And there is Metro, with all the hate and issues they've been having it works and is better than other cities I've lived in.
> Housing is incredibly expensive
Compared to Midwest or South it is ridiculously expensive. But out in suburbs (and not DC proper) it's more manageable than Seattle, SF, NY and such it seems.
> 5) Weather fucking sucks. I lived there 8 years, it sucks
True, true. Though it's fall now. Finally a few weeks of nice cool mornings when opening windows feels nice. And I do like the mountains out West. Skyline drive, hiking and the small towns and farms.
> 6) Quality of life just isn't good. Average commute times and cultural amenities are bad.
I just tried not to commute and lived closed to work. Now work from home. Now you might ask why would I still stay in this area, and that would be a good question. So far it inertia mostly and maybe the idea that it's probably safer to stay in a tech area if had to wanted to switch jobs and working from home wasn't an option any more.
> (With apologies to Canada, we’ve set aside Toronto and several other large cities because they’re not included in most of the data sets we’ve used to determine which places meet Amazon’s needs.)
Reporting results you know are flawed is not the correct response to discovering that it's impossible to get non-flawed results.
Not because the data isn't available, which it is (in abundance), but because it's not available in the data sets the chose to use. Not to put on a tinfoil hat or anything, but I have a very strong suspicion that they chose the data they did, and specifically mention leaving Toronto out, because they know that if they did otherwise, the data would show that Toronto is probably, if not the best, one of the top 3 options, and that likely wouldn't go over well with their core readership...
The weather is terrible compared to Vancouver or ANYWHERE IN THE US. Yeah, it's easy to bring in immigrants, but that's not enough for a 50,000 strong hq.
Let's not forget that they are in the midst of a huge, epic housing bubble that dwarfs anything seen in the US in 2007. Toronto is insanely expensive for the privilege of living in a city whose weather is approximately (less snow, but still) like that of the cities in the US that are known for their terrible winters. (Buffalo, Erie, Cleveland)
Not going to complain about traffic/mass-transit here...but it's a known issue and we supposedly lost another bid (can't think of the company here) because of traffic. We did get a few others...Mercedes-Benz for one.
In the same way that Portland is too close physically, Denver doesn't gain you "anything" for timezone diversity. They might offer the sweetest financial package, but it still seems like a wasted opportunity.
Utah really needs some sort of excellence (lab/institute/etc...) in engineering/science/high tech research that's not just biotech, in addition to a more diverse workforce, to really be a next-level tech environment.
I'm not really jazzed about the idea of Amazon moving in, but don't discount the Twin Cities here, it's a very strong contender.
Houston was eliminated as not having enough white collar workers. Yet they left in Austin which is far smaller because at least 12.5 % base of their base has the right skills.
It makes sense to compare desired jobs versus the general population but not without context. Seriously with six million+ people here, do you really need 12.5% or 750,000 of them to be what Amazon would consider hiring when they only need 50,000 people?
I find the idea absurd: Amazon could fill their entire job quota out of the current worker pool.
With 600 square miles of area, it's tough to have a single metro system serve that entire area and frankly with our weather few people choose to stay outside and wait on transportation unless they just have to.
Which is why you see things like Exxon's move to the Woodlands. There's enough local infrastructure and housing to support their corporate HQ. Unless Amazon decides to buy an inner-city coporate park here they may end doing the same by going to Clear Lake, Sugarland, etc.
Houston is sort of like Austin in that it's an oasis of less conservative politics but the even so the bathroom bill didn't pass.
There's plenty to do outdoors here: I regularly play disc golf, cycle and kayak in the summer. But you do need lots of sun screen, water and to acclimate to the heat. Otherwise you will suffer. I don't think it's any different that living in the South West. You need to know how to deal with the heat.
That said, I doubt it'll be Houston.
But yes there's still plenty of real-estate downtown, although I don't know the status of Shell One and Two specifically.
- UT (@Austin) means a large pool of fresh grads from a top-10 CS program they can recruit.
- Existing presence of both Amazon itself and other tech companies (Google, FB, MS, etc) means they don't have to relocate workers, and it's a lot easier to convince SDEs from other companies to jump ship.
However, I meant it's relevant between Austin/Dallas and other cities nationally.
Plus the water situation when there's no hurricanes around to refill the lakes is fairly dire.
Nope, Austin's full.
That fact that it is now under 10ft of water probably had nothing to do with it.
Nonsense. Most or all of the reasons people have speculated on for why they want a second headquarters work as long as it is not in the same state as Seattle.
Portland is only three hours from Seattle by car. That's close enough that it is not unreasonable for someone at one office to make an occasional day trip to the other. That could give some flexibility they would not get if the offices were farther apart.
I think Portland is great, but I think it would be a mistake.
1) The lack of sunlight in Portland is the same as Seattle. There are a ton of people who just won't live in places like this. It's actually allowed my company to easily recruit people from places like LA who won't consider cloudy, rainy places due to Seasonal Affective Disorder.
2) Portland has bad traffic. Shockingly bad for it's size.
3) The airport is nice, but small. Flights aren't often direct.
https://www.forbes.com/sites/troymcmullen/2017/05/03/denver-...
Unfortunately, I suspect a lot of places will offer plenty of bribes ("tax benfits") that should be illegal.
The place we falter, IMHO, is the social aspect; it's just not cool to live/work here. Sure we have Churchill Downs (The Kentucky Derby) and quite a lot of bourbon but I'm not sure that makes up for the lack of cool places to live and out downtown shuts down after 5PM. Still, if Amazon HQ showed up I'm sure those things would change pretty quickly. $50MM and 50,000 extra people have that effect. :)
Nashua New Hampshire.
- Easy reverse commute from Boston
- Easy access to Boston schools
- New Hampshire is a business friendly state
- Plenty of cheap office space
- No income or sales tax
And, if a larger[1] company moves into the area it will make the commuter rail to Boston project the city has been trying to push a no brainer.
It is even already in one of the highlighted areas of the article (the Boston highlighted region covers Nashua).
[1] It is already home to the headquarters an entire large subdivision of BAE Systems, as well an Oracle office, EMC, Fidelity, and an Amazon distribution center.
The Mexico possibility is also very intriguing, though it seems difficult to make it work with the safety and language issues.
Would be interesting to see some actual data.
These people in power make these deals with little public oversight, usually negotiated in secret, knowing full well they won't have to deal with the long term impacts.
> … and workers can easily get around — and out of town …
Haha yup and that's when it drops off- WAIT WHAT??
Sigh. I know these could be good in some situations, but sometimes I wish cities had a most favored company law: every business that employs people gets the same tax benefits as the company that got the best deal. Cities could only agree to things that were good for businesses generally, rather than letting one or two ignore the rules for five years before they suddenly relocate to shop for a better deal.
Relevant Planet Money: http://www.npr.org/sections/money/2016/05/04/476799218/episo...
They kicked Sacramento off the first round "1 million or more" yet there are 2 million in the greater Sacramento area, strong job growth and local economy, affordable housing, and decent tech chops (ok not the Bay Area by a long shot). The SMA has no detectable boundaries between cities; they just blend together.
I wonder how many other cities were eliminated due to poor research.
The Albany-Schenectady-Troy MSA is about million people, and it's barely a top 50 market. There are definately a lot of other markets in a bunch of different places that can compete for this.
Also "Boston"!= Boston...which is basically a euphemism for Eastern Massachusetts, Northern RI, and Souther NH. You could do this project in Nashua, Worcester, Providence, Waltham, outside 128, and it would make double or triple the cost sense of downtown Boston/Cambridge/Somerville.
No city in the USA can compete with Toronto on the basis of legal risk, cheap labour (senior software devs top out around $90k usd in Toronto) and population/infrastructure
A huge one: Seattle is starting to feel a bit like a company town. This has all sorts of practical considerations, like labor cost and real estate availability.
For example, from https://www.geekwire.com/2017/how-seattles-office-market-bec...: Amazon "takes up approximately 20 percent of Seattle’s office inventory, one of the highest concentrations in the country by a single corporate entity," and Amazon anticipates 50% growth in square footage between 2016 and 2020.
tl;dr: the strongest reasons for 2 HQs aren't political.
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