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AMAZON.COM's HQ2 SWEEPSTAKES. WHICH CITY / STATE SHOULD WIN?






Back in early September, 2017, Amazon.com execs announced that Amazon would build a second headquarters, which they foresee would employ upward of 50,000 mostly white-collar workers who will earn an average of over $100,000 a year.

Amazon execs claim that Amazon will spend up to $5 billion for the new facilities. CEO Jeff Bezos has hinted that HQ2 will “be a full equal to our Seattle headquarters.”

Right now, Seattle is the home to Amazon where it employs over 30,000 workers. Seattle has been the the fastest-growing big city in the USA. Because of Amazon's dominance in Seattle employment. Seattle has become the USA's largest company town.

Execs of the world's largest online retailer say they will announce their decision for their second campus next year.

To be sure, wherever Amazon sites its second headquarters, there will be profound changes to the winning city. Population will grow. Ancillary businesses will sprout up. Residents will get richer.

AMAZON'S WISH LIST



Amazon execs set the parameters for any viable proposal:

  • metro areas with more than one million
  • highly educated labor pool
  • mass transit
  • strong airport
  • a high quality of life and a cultural community fit

In spite of the likely hundreds of city applicants, truly there are only a small number of viable cities, which Amazon execs ought to consider.

After filtering through Amazon's Wish List, I produced this table:





Here is how I filtered the list:


  1. Metros with populations of 1,000,000 or more
  2. Metros with Rail Mass Transit from (1)
  3. Metros with Professional, Scientific and Technical workers (PST) as percent of the labor force above the median of 5.9% for all metros in (2).


Professional, scientific and technical workers work in fields that include computer systems design; management, scientific and technical consulting; scientific research and development; as well as advertising and public relations.

EXPENSIVE MOVES


While Washington (DC), San Jose, Boston, San Francisco, Jersey City, New York City, Newark and Chicago all meet Amazon execs' Wish List, with Washington (DC), San Jose, Boston, San Francisco having among the highest concentration of PST workers as a percent of labor forces, such cities are pricey and crowded. There simply is a dearth of houses as well as rental housing in these old school cities.

Oh and Amazon can forget getting anything built around New York City (Jersey City, Newark) on time and on budget owing to the organized crime and unions, or as they say there, "fugghettaboutit."


That leaves Baltimore, Denver, Salt Lake, San Diego, Houston, Dallas, Seattle and Tacoma.

THE ALTERNATIVES


Baltimore is quite a dangerous city where murder and robbery is commonplace.

Amazon execs might be prejudice against Salt Lake City owing to its high concentration of Mormons. Salt Lake City does not seem cosmopolitan, worldly or hip.

The gorgeous city of San Diego presents an excellent locale. House prices tend to run high although there is much room to expand eastward. Although California is a tax-hell state though that does not seem to stop individuals from trying their luck there.

If execs desire to locate away from the West Coast, then what remains are Denver, Houston and Dallas. As Hurricane Harvey has shown, hurricanes can paralyze greater Houston.

Dallas has a major airport and is hub to a few airlines. Dallas/Fort Worth International Airport is the fourth busiest in the USA behind O'Hare, LAX and number one Hartsfield–Jackson Atlanta. Between the airports and hurricanes, Dallas surpasses Houston.

Denver ranks fifth in PTS workers even surpassing the city of Boston, a city with 54 higher education schools.


THE PROGNOSTICATORS


More than enough journos and others have weighed in their opinions as to the viable cities or which city will win.

THE SMART MOVE — TACOMA




The smart move for Amazon execs simply is to take over the nearby City of Tacoma. The proximity alone that would ease interaction between the two campuses would be big. Sounder Commuter Rail already connects the cities of Tacoma and Seattle.

The percent of professional, scientific and technical (PST) workers as a percent of the labor force is above the median. There are nearly four million living in the Seattle-Tacoma metro and it is growing.

The present matters less than the future. Demographics forever change in the USA and Americans have a tendency to move.

As Seattle has attracted millions since the 1980s owing to Microsoft and now Amazon, so too, can Tacoma attract those looking for better lives.

As it is, the State of Washington does not impose an income tax upon residents. That is a huge attraction for highly paid workers.

All cities likely have tight labor forces with respect to PST workers. A second HQ located in Tacoma will attract would-be PST workers from the high-income tax states seeking to escape such misery.

Amazon.com execs would be better served by setting up inexpensive satellite recruitment offices in the other major metros simply to lure away PST workers.

There simply isn't any compelling reason for Amazon execs to site a second headquarters elsewhere.


IF I WERE BEZOS


If I were Bezos, I would pick Tacoma. My runner-up city would be Dallas precisely because the state of Texas lacks an income tax. Dallas is the ninth largest city with a population growth over 10 per cent since the 2010 census.

In third, I would pick Denver in spite of Denver having more PST workers right now than either Tacoma or Dallas. Denver currently is the 19th largest city in the U.S.


WHAT IS WRONG WITH SEATTLE (OR EVERETT)?

Other than looking to extort a near tax-free set-up for Amazon and a way to funnel sales through such a set-up to avoid taxation, it seems puzzling why Amazon execs would desire to build another massive facility far from where the brains of Amazon already exist.

About thirty miles north of Seattle sits the seventh largest city of the State of Washington, Everett. Like Tacoma, Everett sits on the Sounder Commuter Rail.

Boeing once had a strong presence slightly south of Everett. No doubt there is much land for siting a campus.

There isn't a compelling reason to locate outside of Amazon's backyard. The Seattle-Tacoma metro should attract talent for decades to come. Amazon execs ought to have great relationships with the political establishment of the State of Washington as well as with politicians in and around Seattle.









To comment about this story or work of the True Dollar Journal, you can @ me through the Fediverse. You can find me @johngritt@freespeechextremist.com

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