Sure thing…whitherSTL wrote: ↑Sep 07, 2017I'd like to see Gone Corporate weigh in here. He mentioned previously that Lambert was in the running for their logsitics HQ which eventually went to Cincy. Hopefully that effort created relationships with AMZN.
Last March, Amazon chose Cincinnati/Northern Kentucky International Airport (CVG) as the hub for Amazon Prime Air, their new cargo airline meant to bring in-house the logistics operations that had previously been outsourced to FedEx and UPS. CVG is recognizing direct investment of $1.5BB with about 2,700 direct new hires. They will be starting off with a fleet of around 60 767-300s (starting with wet leases from two providers), each of which can fly about 85 tons of cargo for 13 hours. CVG already has a respectable amount of international cargo flights, and with it the established operational capacities/talent sets for handling this workload. It also has shuttered terminals ready to be converted and a ridiculous amount of proximate open land on which to build. AFAIK, incentives have not been made public.
St. Louis Lambert International Airport was very, very close to securing the hub for Amazon Prime Air. When this was announced, I was livid, because I know STL did a lot to pitch Amazon. I think we were a final 3 pick. Meanwhile, I’m confident that Amazon was presented at this time with the capacities of STL for economic development opportunities. (Concurrently, there was some interesting M&A activity the next day that made me feel a lot better, got me to think Amazon was looking for something else, something particular to the Cincinnati area, but that’s for maybe another time…)
The STL pitch to Amazon Prime Air likely included reviewing in full the pitch to Boeing for the 777X assembly line. That offer included around $1.7BB+ in State economic development incentives as well as $1.8BB in additional incentives from STL County. This is an incredible amount of money to pitch for an assembly plant, let alone what could be pitched to secure the headquarters for the fastest growing tech company out there. And, the 777X incentives would have been very smart investments into the region’s economy that would’ve more than paid for themselves. It also must be recognized that these were incentive programs wherein Boeing would’ve recognized these monies only upon completing certain thresholds for employment, buildout, etc.
The thing that I remember most about the 777X incentive package is that I’ve never seen the MO State Government come together across political lines so quickly or so seamlessly, and in the process they produced an incredibly competitive business proposal. Also, I’ve never seen Jeff City so ready to invest in and support STL.
It should be noted that STL did not get the 777X assembly only because of last-minute labor union concessions in Renton, WA that allowed them to retain the 777X there without having to relocate commercial jetliner assembly out of the Seattle area which would have been very expensive. (Also, they’d have had to figure out a way to bring the wings to Hazelwood from assembly in Japan without direct access to a seaport). Still, STL’s Boeing operations did secure significant component business for the 777X, which led to the construction of a $300MM, 424,000 sq.ft. composite facility in Hazelwood. Also, Boeing has since relocated a considerable amount of their IT workforce to STL from Seattle. The offers were strong enough to bring in business that we never would have had otherwise.
I’m sure they would’ve been pitched on NorthPark…
Closely related to cargo operations is the commercial passenger traffic at the airport today. STL definitely has excess capacity, meaning we have plenty of slots for more flights. As jstriebel mentioned before, we also have the infrastructure from when we were the national hub airport for TWA. Now, should the need arise for increased air traffic in and out of STL, such as Amazon wanting more direct flights in and out of here, then these flight needs can be met with birds being retasked or put on new routes. If given enough time to prep up facilities, i.e. taking the rest of the D Concourse (and the wide body/international wing of the C Concourse) out of mothball status, then STL can meet these demands, immediately and in full.
So yeah, very much, I believe Amazon has already had a great introduction to the economic development leadership of STL.
Meanwhile, it’s been a while since I’ve written here, but I had to check in today and review this thread. I’ve heard some very positive things from certain people I think are directly in the know on STL, and I stopped by to cross-reference what I’ve heard. Right now, I’d say STL is absolutely in the running for HQ2. A week ago, I thought we had a 20% chance to get Amazon in STL; not bad considering 238 sites have submitted proposals. Today, I think we may have an even better chance.
There has been considerable interest in promoting Missouri University of Science & Technology – Rolla.
Workforce is actually not a problem for STL. People will relocate for the opportunity to work for Amazon, especially recent college graduates. The question should really be with whom they directly compete for talent. And bouncing off Quincunx’s WSJ post, San Jose is absolutely not a viable city for Amazon for this exact reason. STL is positioned very competitively.zink wrote: ↑Sep 08, 2017MoneyWatch doesnt even include St. Louis as a top contender simply because they dont have enough educated adults:
https://www.cbsnews.com/news/amazons-hq ... ontenders/
Yes. Consider that direct competition with the local national retailer is most likely why Minneapolis is only modestly pursuing HQ2: fear of hurting Target, their big local company, with too much proximate competition. Same time, Amazon’s big fight will actually be with Facebook, Alphabet, and Apple in the years ahead.9ine Runner wrote: ↑Sep 08, 2017Would choosing to relocate St. Louis (or the midwest) offer any strategic role in Amazon continuing to take the fight to Walmart, HQ'd in Bentonville, AR?
Maybe because the Post-Dispatch could be bought by Bezos, and the old guard at the Post-Dispatch cleared out?
Also: Something maybe, maybe happens before everything else, and maybe soon. Sorry for being so vague. Let’s just keep our eyes open.
