Skip to main content
  • Home
  • About
  • Faculty Experts
  • For The Media
  • Videos
  • Topics
    • Alumni
    • Events
    • Faculty
    • Library
    • Research
    • Students
    • All Topics
  • Contact
  • Submit
Business & Economy
  • All News
  • Arts & Culture
  • Business & Economy
  • Campus & Community
  • Health & Society
  • Media, Law & Policy
  • STEM
  • Veterans
  • |
  • Alumni
  • The Peel
  • Athletics
Sections
  • All News
  • Arts & Culture
  • Business & Economy
  • Campus & Community
  • Health & Society
  • Media, Law & Policy
  • STEM
  • Veterans
  • |
  • Alumni
  • The Peel
  • Athletics
  • Home
  • About
  • Faculty Experts
  • For The Media
  • Videos
  • Topics
    • Alumni
    • Events
    • Faculty
    • Library
    • Research
    • Students
    • All Topics
  • Contact
  • Submit
Business & Economy

5 Questions Answered: Amazon Opening Headquarters in New York and Arlington, VA

Tuesday, November 13, 2018, By Daryl Lovell
Share
AmazonNew York Citysupply chain management

Today, Amazon announced it had chosen New York City and Northern Virginia as the new location for its second headquarters. The company plans to invest $2.5 billion in both locations, and hire as many as 25,000 employees in each location.

Julie Niederhoff is an associate professor of supply chain management at Syracuse University. She answers five top questions related to the Amazon headquarters announcement.

———————————————

Amazon chose locations closest to New York City and Washington D.C. – why?

Niederhoff says: “These new locations are managerial headquarters and so the main goal is talent acquisition that will be focused on development and growth. Both of these places are known for attracting top talent in start-ups, software, business, and more. In addition, they are multi-cultural cities that are attractive for people all over the world, allowing them to attract and retain top talent of many nationalities.”

Both of the new headquarters will be located outside of the city center – why would Amazon make that decision?

Niederhoff says: “These are large facilities – 25,000 employees each – with plans for green space and other amenities so creating a space that uniquely represents Amazon’s culture requires some space. Also, much of their talent may not live directly in the city, either, making it more attractive to have a work location that puts them near the diverse city area but with an opportunity to live close by and commute more easily.”

Why does Amazon need an East Coast headquarters? 

Niederhoff says: “I can only speculate, but I imagine their ability to grow physically and from talent are becoming constrained on the West Coast as real estate is becoming impossible to afford and recruitment is so competitive. But mostly, I’d say that Amazon’s primary goals for the future are in finding new start-ups and other ideas that they can use to continue to grow, and these two new cities attract a lot of creative developers. In addition to new start-up ventures, finding opportunities to partner with or create new services for other businesses is a way to keep growing and they can more easily access these other companies all along the eastern US from their two new headquarter locations. Access to household customers is less of a concern since these new locations aren’t fulfilment centers that are shipping out Amazon products. There are over 100 fulfillment centers for Amazon scattered all throughout the US which provide those fulfillment services and a new location in Nashville will be managing the operations – another big part of today’s announcement. They were really looking for a headquarter location—or now locations—that can help them create new opportunities for growth.”

What is the main role of the new Operations Center of Excellence in Nashville?

Niederhoff says: “The team in Nashville – and this is another rapidly growing geographic area that’s known for attracting top talent – is the supply chain, logistics, and operations teams. They’re the ones tasked with finding creative and reliable ways to increase speed and availability of product while keeping costs in check. They will likely be figuring out how to implement all of the creative new opportunities that the New York City and Washington D.C. employees create. It’s a different kind of talent and a different sized team, but a really important part of the Amazon system.”

What kind of benefits might the company have gotten in these locations in terms of tax exemptions and such?

Niederhoff says: “They certainly got some! The press release details quite a few of the benefits. When Amazon announced the bidding competition for locations, many analysts wonder how what their real strategic goal was. Was it to really consider other options or just to play the field enough to get a better package at their already planned locations? In the end, all of the locations offered attractive options for taxes and other benefits and resources, including the locations that were chosen.”

 

To request interviews or get more information:

Daryl Lovell
Media Relations Manager
Division of Marketing and Communications

T 315.443.1184   M 315.380.0206
dalovell@syr.edu | @DarylLovell

820 Comstock Avenue, Suite 308, Syracuse, NY 13244
news.syr.edu | syracuse.edu

Syracuse University

  • Author
  • Faculty Experts

Daryl Lovell

  • Julie Niederhoff

  • Recent
  • Eight New Recruits Begin Campus Peace Officer Academy
    Thursday, May 19, 2022, By Christine Weber
  • Media Tip Sheet: Consequences of China Lockdown
    Thursday, May 19, 2022, By Vanessa Marquette
  • Dean Rajiv ‘Raj’ Dewan to Step Down as Dean of the School of Information Studies
    Thursday, May 19, 2022, By News Staff
  • 2022 Graduates Reflect on Service as Academic Coaches
    Thursday, May 19, 2022, By Ellen de Graffenreid
  • Funding Expands for Newhouse Professors’ Work on Technology to Combat Fake News
    Wednesday, May 18, 2022, By Wendy S. Loughlin

More In Business & Economy

Rabia Razzaq G’23 Wins 2022 Intelligence++ Inclusive Design Competition

Rabia Razzaq G’23, a multidisciplinary designer and graduate student in the College of Visual and Performing Arts, won the 2022 Intelligence++ Showcase Competition, held in the Whitman School of Management on April 26. The interdisciplinary competition—which encourages design and business…

Whitman School Receives STEM-Designation for Master’s in Professional Accounting Program

The Martin J. Whitman School of Management’s master’s in professional accounting program has received STEM-designation. The class of 2022 will be the first to graduate with this new STEM certification. “We have made notable innovations to our master’s in professional…

Whitman’s Full-Time MBA Program Achieves Highest U.S. News Ranking Since 1998

The Martin J. Whitman School of Management at Syracuse University is now ranked No. 57 in the nation for its full-time MBA program by U.S. News & World Report. This is the highest ranking for the Whitman School since 1998…

Stocks and Finance Immersion Offers A&S | Maxwell Students a Window Into Finance

When Jehan Muhialdain ’22 moved to the United States from Iraq five years ago, one of the major differences she noticed in her new country was the focus put on financial literacy and wealth management. She says living in Iraq,…

Applications Open for RvD iPrize and Hunter Brooks Watson Spirit of Entrepreneurship Competitions

The School of Information Studies (iSchool) with support from the Blackstone LaunchPad at Syracuse University Libraries (LaunchPad) are now accepting applications through March 15 for the Raymond von Dran (RvD) iPrize pitch competition and the Hunter Brooks Watson Spirit of…

Subscribe to SU Today

If you need help with your subscription, contact sunews@syr.edu.

Connect With Us

  • Facebook
  • @SyracuseUNews
  • Youtube
  • Facebook
  • Instagram
  • Youtube
  • LinkedIn
  • @SyracuseU
  • @SyracuseUNews
  • @SUCampus
  • Social Media Directory
  • Accessibility
  • Privacy
  • Campus Status
  • Syracuse.edu
© 2022 Syracuse University News. All Rights Reserved.