Despite the fact that poll after poll confirmed that New York City residents supported Amazon’s decision to open an office in the city, politicians seem to have scuppered the plans. The original idea was to open a campus in the Long Island City neighbourhood of Queens bringing around 25,000 jobs to the region. Rumours began to circulate last week that Amazon was looking to cancel the project and they have been confirmed today.
Unwilling to work with Amazon
It would appear that a small group of politicians in the New York City region were unwilling to work with Amazon to create 25,000 jobs. This is a company which continues to grab market share, has shown tremendous long-term growth and is here to stay. Quite why the movers and shakers in New York City were against the move is a mystery.
New York Governor Andrew Cuomo went as far as to challenge opponents asking whether they “want to just be Wall Street and finance”. History shows that where ever Amazon moves not only are there significant direct job opportunities but the local supply chain, property markets and general economy all benefit. Plans to open a new headquarters in Virginia and another office in Nashville, Tennessee are going to plan with no such resistance in these areas.
Working with the local community
The fact that Amazon has now retreated from its planned venture in New York City has fuelled the fire of concern among some communities. There were serious questions asked about Amazon’s employment diversity record amid concerns the local workforce would not benefit as much as hoped.
Those local politicians in favour of Amazon opening a new office in New York City have not helped the situation. Rumours of behind closed door deals which would have given Amazon performance-based incentives potentially totally $3 billion did not help the situation. This, despite the fact that official forecasts that the company would have brought an additional $27 billion in revenue to the area. We now live in an era where companies such as Amazon can literally name their price when looking to bring their revolution, lock, stock and barrel, to your city,.
The growing power of corporates
Time will tell whether New York City politicians will ultimately pay the price at the ballot box but an unhelpful approach by some politicians to Amazon’s potential move would appear to have backfired. Whether they were looking to force Amazon to the negotiating table or indeed had a long-standing reluctance to the move, the deal is now dead and buried. We have seen similar situations with regards to Google and other corporate giants which have literally changed the face of the business and employment markets in America and around the world.
Despite the New York City move apparently being a “done deal”, news of the cancellation did not even cause a flicker amongst Amazon investors. They know that while New York City politicians have effectively turned their back, there will be others more welcoming of the gravy train of employment that follows the likes of Amazon.