The reason Amazon is searching for a second city is to relieve pressure on its Seattle base. This reflects the exponential growth that the technology company is continuing to experience as the major player in one-stop-shop e-commerce.
The location of the new city is not just of interest in terms of a major business relocating, the selected city will benefit in many ways. Amazon plans to employ around 50,000 people and invest some $5 billion into local infrastructure, boosting the economy of the chosen locale. This will create a network of subcontractors and other firms providing services, from rental accommodation to materials supply.
In approaching the selection process Amazon gained considerable publicity through having cities ‘bid’ for the honor of hosting the technology giant. At the outset there were 238 cities from 43 states and 6 provinces in the running.
To highlight their intentions several cities undertook different stunts. Tucson, Arizona, for instance, sent a 21-foot saguaro cactus to Amazon’s Seattle base. In contrast, New York lit several landmark buildings in “Amazon orange.” In a different move, city of Stonecrest, Georgia, offered to rename a part of itself Amazon, Georgia.
Industry watchdogs attempted to predict which city is likely to emerge as the winner. The most insightful predications come from Sperling’s Best Places, where analysts, in assessing Amazon’s public (and potential private) criteria have scored Atlanta and Georgia in joint first place. This is followed by Boston and Chicago, in third and fourth spots respectively. The list is not confined to U.S. states, with Toronto also considered as a major contender.
Explaining his predictive methodology, Bert Sperling told The Detroit Free Press: “Our thing is about location and place and how it matters, and it seems to matter more and more these days…This is our meta-analysis, taking stock of everything that’s out there. This is what folks are saying.”
The predictions appeared to be fairly accurate and now Amazon has unveiled the top twenty cities that is weighing up for its new major base of operations. The new site, once it is constructed in the chosen city, will be called HQ2.
The top twenty includes Washington D.C. (where there are three different pitches); Columbus, Ohio; Indianapolis, from the U.S. Midwest; plus major players: New York, Los Angeles, Chicago, Toronto and Dallas.
Others on the list, given less of a chance by Bloomberg’s review, are: Austin, Boston, Columbus, Denver, Indianapolis, Miami, Montgomery County, Nashville, Northern Virginia, Philadelphia, Pittsburgh, Newark, and Raleigh.
As to who will win it remains a guessing game. However, the city with the strongest tech savvy workforces, a good economy, most established infrastructure, and best business-friendly regulations is likely to triumph.
