Amazon HQ2

Discussion in 'Philadelphia Business' started by Tartan69, Sep 7, 2017.

  1. ODragon

    ODragon Well-Known Member

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    I find LI a little odd since it is surrounded by water on all but one side. NNJ seems like logistically friendlier to a shipping company. Maybe being coastal makes up for it.
     
  2. Jayfar

    Jayfar I'm very old®

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    But keep in mind, the new Amazon locations won't be shipping merchandise.
     
  3. ODragon

    ODragon Well-Known Member

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    That makes a bit more sense then.
     
  4. Tartan69

    Tartan69 Pawn in game of life

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    Yes, those facilities are in places like Carlisle and Wilkes-Barre.
     
  5. Tartan69

    Tartan69 Pawn in game of life

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  6. ODragon

    ODragon Well-Known Member

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    Long Island City |= Long Island. Man I read that wrong on the phone this morning.
     
  7. Jayfar

    Jayfar I'm very old®

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    It is and it isn't. Technically both Queens, which includes Long Island City, and Brooklyn are part of Long Island, but in common usage people only use Long Island to refer to the other two counties.

    Long Island - Wikipedia

    Long Island is a densely populated island off the East Coast of the United States, beginning at New York Harbor approximately 0.35 miles (0.56 km) from Manhattan Island and extending eastward into the Atlantic Ocean. The island comprises four counties in the U.S. state of New York. Kings and Queens Counties (the New York City boroughs of Brooklyn and Queens, respectively) and Nassau County share the western third of the island, while Suffolk County occupies the eastern two-thirds. More than half of New York City's residents now live on Long Island, in Brooklyn and Queens.[2] However, many people in the New York metropolitan area (including those in Brooklyn and Queens) colloquially use the term Long Island (or the Island) to refer exclusively to Nassau and Suffolk Counties, which are mainly suburban in character, conversely employing the term the City to mean Manhattan alone.[3]
     
  8. Tartan69

    Tartan69 Pawn in game of life

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    A certain NHL team concurs:

    [​IMG]
     
  9. Sean

    Sean Well-Known Member

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    I do not see how this decision is beneficial to anyone other than Amazon. They get incentives from two different locations while only delivering half the number of employees initially promised. And neither city actually gets a second headquarters. The Wall Street Journal (behind paywall) has quoted the incentive package at $5.5 billion split with VA offering $2.5 billion and NY offering $3 billion. I see this whole process as just accelerating the tax giveaways to bribe companies to locate (or stay) in an area.


    I grew up on the island, and the portion below is completely correct. "The City" is used to refer to Manhattan, while "The Island" is used to refer to Nassau and Suffolk counties. If you were going to Brooklyn or Queens you would not call it the city.

     
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  10. Nytecat

    Nytecat Well-Known Member

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    It always sounded like the scales were tipped in favor of NYC and DC from the start as Amazon had a total of six “cities” representing those two regions.
     
  11. ODragon

    ODragon Well-Known Member

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    I grew up in Queens so I am keenly aware of the differences. In this case, poor reading comprehension of the original post.
     
  12. Tartan69

    Tartan69 Pawn in game of life

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    For NYC, certainly agree. They don't even remotely need this, particularly since Amazon is using it as a way to break into the financial industry and compete with existing companies within the Wall Street ecosystem.

    For NoVA I can see some value, as Amazon supports quite a lot of hush-hush stuff in the defense industry...way more than most people realize.

    Philly could have absolutely used this shot in the arm...never was going to happen though. In hindsight this was never about an actual HQ2, it was always about mini-HQs focused on specific industry access. Should Amazon want to compete in Eds and Meds, then maybe we have a chance.
     
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  13. DocAwesome

    DocAwesome The Doctor is In

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    I do believe that Amazon IS moving into meds. (medical insurance, healthcare etc). I guess having connections with marketing and finance, while being able to keep a thumb on the scales of politics made for a better business decision.

    Apropos to nothing, Philadelphia has made its identity for the last half century through not needing to have the best and shiniest. We were always a few years behind fashion and economic trends. Don't flash money, don't wait in lines, and don't care if others look down on us for it. The chip on our collective shoulder was always that NYC and DC stole the financial center and the political center that we once owned. Whatever, we don't care. We were the uglier little brother and we were proud of it. We have arts and culture that thrived on this mindset. Pulling in a national beauty contest resulting in 25k jobs would likely have been the nail in the coffin for that culture, and though we sure need jobs in Philly, a flood of money would wash away so much of the Philly we knew.
     
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  14. Tartan69

    Tartan69 Pawn in game of life

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    Medical insurance and healthcare are relatively local though given the regulatory environment. They aren't going to compete with the IBCs of the world...too much overhead.

    But on the pharma side of the equation? And wholesale/distribution in particular? AmerisourceBergen has a competitive advantage there that only a fellow behemoth like Amazon can hope to tackle.

    Not being a native Philadelphian, I admit I'm biased here...but I yearn for that day.
     
  15. Sean

    Sean Well-Known Member

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    Thinking about it more, I completely agree about the NoVA connection to defense. With how much AWS (Amazon Web Services) has grown as a DoD provider in recent years that angle really makes sense. You are right that people outside the field really know very little about Amazon's involvement there. Going forward, I only see that portion of their business continuing to grow and everyone else in that space is really playing catch up.

    I think this national beauty contest was more about gathering extremely local data. Amazon received 280+ RFP responses for free from localities with extremely detailed analysis on the demographics, talent pool, and culture of each metro area. I wonder what unique new angle they are going to use all this information for aside from improved marketing.
     
  16. Jayfar

    Jayfar I'm very old®

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    A lot of people aren't aware that AWS is Amazon's real money maker, bringing in about a tenth of their overall revenue, but almost 3/4 of their operating profit. As The Register put it in a snarky sub-hed: "It's pretty much a cloud provider with a gift shop on the side."

    Amazon: For every dollar of op. profit going into Bezos' pockets, 73 cents came from AWS | The Register
     
    #76 Jayfar, Nov 15, 2018
    Last edited: Nov 15, 2018
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  17. Tartan69

    Tartan69 Pawn in game of life

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  18. Tartan69

    Tartan69 Pawn in game of life

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    To be fair, the concept of AWS owes its very existence to the solution of a huge constraint that the retail outlet had around dynamic scalability. It is clear however that the child has surpassed the parent.
     
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  19. Sean

    Sean Well-Known Member

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    I didn't realize how quickly Azure has been growing this year.

     
  20. Tartan69

    Tartan69 Pawn in game of life

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    Yes Microsoft has done an admirable job of growing it, especially for smaller enterprises. And there's not even a question as to who the only two true big dogs are in the space. IMO however, Azure still has quite a way to go to challenge AWS at the top end.
     
  21. Tartan69

    Tartan69 Pawn in game of life

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    Wow. Just...wow. NY Governor Andrew Cuomo everyone:

    "Cuomo defended the deal, arguing that New York has to offer incentives because of its comparatively high taxes." Cuomo: “It’s not a level playing field to begin with.” “All things being equal, if we do nothing, they’re going to Texas.”

    A $2 Billion Question: Did New York and Virginia Overpay for Amazon?

    Philly really needs to take heed and understand the underlying implication of an out-of-whack business tax structure. Maybe read up on game theory and how it might apply. I'm sure Clarke is all over this. *eyeroll*
     
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  22. Scoats

    Scoats Well-Known Member

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  23. Jayfar

    Jayfar I'm very old®

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  24. Tartan69

    Tartan69 Pawn in game of life

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  25. phillyaggie

    phillyaggie Well-Known Member

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    Kenney's chief of staff Jim Engler was interviewed last week on Radio Times. Going by memory, but he had no clue about how to grow jobs and business in Philly.

    Philly's bench of proactive business thinkers in politics is thin to nonexistent. If Amazon can't handle New York's ways, one look at Philly and PA and there is no way they even give it a second thought. There is almost nothing here for Amazon.
     
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  26. Tartan69

    Tartan69 Pawn in game of life

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    Looking at his LinkedIn profile, the only non-City job he's had is a college job at Morey's Piers. Not even remotely close to cutting it.

    Domb and ??????
     
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  27. Jayfar

    Jayfar I'm very old®

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    Amazon Pulls Out of Planned New York City Headquarters | NYTimes.com

    Here is the statement released by Amazon:

    After much thought and deliberation, we’ve decided not to move forward with our plans to build a headquarters for Amazon in Long Island City, Queens. For Amazon, the commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials who will be supportive over the long-term. While polls show that 70% of New Yorkers support our plans and investment, a number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward with the project we and many others envisioned in Long Island City.

    We are disappointed to have reached this conclusion — we love New York, its incomparable dynamism, people, and culture — and particularly the community of Long Island City, where we have gotten to know so many optimistic, forward-leaning community leaders, small business owners, and residents. There are currently over 5,000 Amazon employees in Brooklyn, Manhattan, and Staten Island, and we plan to continue growing these teams.

    We are deeply grateful to Governor Cuomo, Mayor de Blasio, and their staffs, who so enthusiastically and graciously invited us to build in New York City and supported us during the process. Governor Cuomo and Mayor de Blasio have worked tirelessly on behalf of New Yorkers to encourage local investment and job creation, and we can’t speak positively enough about all their efforts. The steadfast commitment and dedication that these leaders have demonstrated to the communities they represent inspired us from the very beginning and is one of the big reasons our decision was so difficult.

    We do not intend to re-open the HQ2 search at this time. We will proceed as planned in Northern Virginia and Nashville, and we will continue to hire and grow across our 17 corporate offices and tech hubs in the U.S. and Canada.

    Thank you again to Governor Cuomo, Mayor de Blasio, and the many other community leaders and residents who welcomed our plans and supported us along the way. We hope to have future chances to collaborate as we continue to build our presence in New York over time.
     
    #87 Jayfar, Feb 14, 2019 at 12:07 PM
    Last edited: Feb 14, 2019 at 1:43 PM
  28. Sean

    Sean Well-Known Member

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    Amazon cancels NYC Headquarters

    Apparently it was cancelled due to community backlash.

     
  29. Sean

    Sean Well-Known Member

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    Came here to post the same story Jayfar.
     
  30. Tartan69

    Tartan69 Pawn in game of life

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    I stand corrected. Did not consider the AOC factor.
     

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