Last week Amazon announced that it had narrowed its list of potential sites for there second headquarters to 20 different locations. Out of this list, Toronto is the sole Canadian location named as a potential candidate.
The location of where HQ2 is ultimately set is very important as Amazon promises to bring economic prosperity to the region in which the HQ will build its roots.
Amazon is expected to invest over $5 billion and grow HQ2 (what Amazon calls its second headquarters) to include as many as 50,000 high paying jobs.
Making HQ2 an almost full equal to its current HQ in Seattle.
Upon observation of the statistics of Amazons already established Seattle HQ, it becomes evident that the HQ does bring a lot of new opportunities. Not only did Amazon directly invest over $5 billion into the Seattle economy but as a result of its direct investments Amazon brought in additional high amounts of indirect investments into the local economy.
As a result of direct investments, there were $38 billion of additional investments in the local economy, 53,000 additional jobs created in the city and a $17 billion increase in personal income by non-Amazon employees.
What makes this case interesting is that Amazon is choosing its second headquarters via a public process, stating,” We want to find a city that is excited to work with us and where our customers, employees, and the community can all benefit“.
Within the coming months, Amazon will work with each of the candidate locations to dive deeper into their proposals and evaluate the feasibility of a future partnership.
Knowing this, it is crucial for Toronto to try its hardest to secure itself the location of HQ2 and here is why:
Ontario is in the midst of a harsh job environment with the scheduled increase in the minimum wage to $15.
On net, the FAO previously estimated that the minimum wage increase will result in a loss of approximately 50,000 jobs but this number can be higher with rising of automation.
This January marked the first hike to $14 and already the effects can be felt by many businesses and corporations, as they do there best to cut costs in any way possible.
If Ontario is able to establish itself as the best candidate for HQ2 not only could the whole economy bolster but the jobs that are expected to be lost will be forgone completely.
HQ2 can help offset the stark minimum wage hike and make the process a much smoother process.
It can put Toronto in the epicenter for future investments and solidify advancement and jobs for Ontario.