In September, Amazon announced plans to open the company’s second headquarters in North America, opening a bidding war frenzy for HQ2. From Boston to Dallas, Calgary to Newark, more than 238 proposals have been submitted to date as cities look to capture a sliver of Amazon’s unprecedented footprint.
And it’s no wonder that competition is fierce: In Amazon’s current home of Seattle, the company rules 8.1 million square feet of space—the most real estate for any employer in a major U.S. city, according to the Seattle Times.
But, no matter where Amazon lands, the company is sure to have a tremendous impact on the transportation and construction industries (even more than it does now, believe it or not).
Here are our top three predictions of what’s to come once a decision is made in 2018:
- Amazon’s second home may have an impact on distribution.
For the lucky city selected, domestic and global shipments could potentially flow in and out of the area. For example, a Bloomberg article cited Pittsburgh as a potential HQ2 location given its proximity to major distribution hubs. Given the costs associated with using a third-parties such as UPS to ship hundreds of thousands of Prime orders, Amazon likely has major financial incentive to radically change its delivery model. The wheels may already be in motion following the purchase of Whole Foods in June. The Whole Foods acquisition provides Amazon with the opportunity to leverage local inventory and local deliveries, which could reduce delivery costs dramatically and/or allow for enhanced delivery services. (Maybe this make Austin, TX and major HQ2 contender.)
- Amazon’s second home will spur the city’s economy… and cause an influx of traffic.
The company has offered many tax incentives and perks for the selected city, which will contribute billions of dollars to the local economy when it hires 50,000 more employees. However, with this job growth comes a flock of new residents—and presumably more congestion. That could mean greater obstacles for an ongoing challenge within the trucking industry. Highway bottlenecks not only lead to additional fuel costs, maintenance issues and driver fatigue, but also generate widespread inefficiencies as fleets lose an average of 728 million hours in productivity annually.
- Amazon’s second home will be a hotbed for new construction projects.
The local economy will not only receive a boost from the $5 billion in construction planned for the office headquarters itself, but the housing needed for those 50,000 new corporate employees. And, according to Amazon, construction and ongoing operation of HQ2 is “expected to create tens of thousands of additional jobs and tens of billions of dollars in additional investment in the surrounding community.” Needless to say, construction companies and fleets will have an opportunity, as well, to capitalize on the booming market.
Fortunately, for all of the outcomes above, GPS fleet tracking offers a solution by helping fleets to:
- Track every vehicle, across in an entire fleet, and know its location at any given moment
- Re-route drivers on-the-fly when traffic congestion challenges production or delivery
- Optimize fuel consumption, maintain vehicle health and promote a culture of safety
Click for more information on fleet tracking solutions.