Today we posed the question of competition, and whether the big financial institutions can survive without Fintech or not. We know that competition in the banking landscape is very low, with the big 4 still holding most of the power in the market. It’s been a subject that we have discussed a lot at Dynamic Read More…
What happens to Amazon’s second HQ now?
Thu 28 February 2019 - 11:37 amIndustry Finance
The saga of Amazon’s second HQ location seemed to be a done deal by the end of 2018, with Arlington, Virginia, and Queens, New York, being the two locations picked. But, fierce opposition to placing the HQ in Long Island City in Queens has led the retailer to pull out of the decision. Once again, a slew of cities have begun the process of submitting requests that Amazon move to their city to set up their second HQ. While Amazon has stated that they are not actively pursuing the search for another city, that hasn’t stopped states and cities from around the USA submitting their proposals to host the next HQ.
Why does it matter where Amazon’s second HQ is?
Amazon is traded on the stock market, so whatever market capitalization affects the stock will likely affect the local economy. Should the stock tumble, employees in the area may be out of work – or if it improves, there might be more job opportunities, pay increases, or other ways for the local economy to benefit. This could be seen after the acquisition of various arms of the company, including Whole Foods and Twitch, as the stock market fluctuated and the tech giant showed its loyal followers how well it could do. Indeed, more people are invested in decisions that big companies like Amazon make because they are able to trade on them themselves, with CFD trading account platforms allowing people to speculate on the rise and fall of a stock value without owning it.
So the decision for the second HQ won’t just affect local economies, but potentially wider economies too. Some cities have been eager to show why they should host the tech company, while others have been vocal about not wanting it for various reasons. Indeed, Amazon moving into an area could turn it into an Amazon-centric place of business and residence.
Who are the new contenders?
While Amazon have remained tight-lipped about any decisions, there are no doubt some contenders who think they have a shot at being New York’s replacement. Nearby Newark, New Jersey, has thrown their hat in as one of the 20 finalists in the original search. Miami was also a possible contender, and Mayor Carlos Gimenez has already spoken up about wanting the HQ. Chicago has also made a point of wanting to be reconsidered for Amazon’s HQ. Despite not being a finalist, Warren, Michigan’s Mayor Jim Fouts reached out to the corporation – using the logic that several highly skilled workers had just been laid off by GM, while the Cadillac world headquarters was attracted there.
Other areas in New York have also expressed interest, during a time when the residents of Long Island City, Queens, are in a difficult position of rejecting the company. There are beneficial reasons for and against turning a small region into another Amazon location, but with such a wide range of companies begging Amazon to consider them, they shouldn’t have trouble finding somewhere suitable.
While Amazon’s decision is still under lock and key – or hasn’t even been made yet – cities around America are calling for the tech giant to consider the riches that they contain to set up its second HQ.
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