Friday, September 29, 2017

The Amazon Canard





"We could end up hosting Amazon for a boatload of TIF money and other concessions, and end up with a huge building bristling with robots, AI computers, and drones." 



Well, well. One of more business unfriendly states (that be Minnesota) is now jumping up and down, and screaming for attention. From whom you might ask? Amazon. Amazon is growing so fast, it has now determined it will need another major hub somewhere in North America. At first, our state's planners looked at this deal with the same jaundiced stare they gave to Wisconsin when was flirting with Foxconn. Give up all those TIF dollars and concessions, just to get a "maybe"? But on second thought, that "maybe" might be a pretty good deal.

I suppose since I brought this subject up, I should give my take on Amazon. First, please forgive the bias. I love Amazon. I am a prime member. I greatly respect Jeff Bezos. It has been many years since we have had a captain of industry like Bezos. He is an iconoclast. He has changed retail in the United States - maybe forever. 

But for similar reasons why I really respect Bezos, I am also going to throw out the yellow flag. Unlike his running mate Elon Musk who stays awake at night fearing the dark side of AI, Bezos is counting on it. Not only AI, but more sophisticated robotics which will greatly improve the efficiency of his distribution centers. It is no secret that Bezos as taken the "on demand" concept of everything and put a jet pack on it. His goal? Whenever possible or plausible - same day delivery.

So what is the canard Bird? You have something against a bit of technology improvement(s)? Not a bit. However, those 50,000 jobs which are being waived like a carrot for all bidders to see, might end up being half (or more) mechanical. And besides all of which, Hawaii is seldom like the post cards. Many people up in the iron range remember getting stung by the NWA/Delta maintenance base which somehow vanished in a cloud of dust. The end result? No added jobs and a huge empty building.

Here is my biggest fear. As we know, most government workers have trouble screwing in a light bulb. One has to look no further than the MNSure mess or the Stadium Commission debacle. Amazon on the other hand, have some pretty sharp cookies working for them. My concern is if talks get serious with Minnesota, they (Amazon) will bring in their sharpies to negotiate with Elmer Fudd. I can see Amazon really waltzing us around the May Pole. Anything, anything, to show Wisconsin we also can land a "Foxconn" like deal.

Anyhow - that is my take. It might be one of those "be careful of what you wish for" moments. We could end up hosting Amazon for a boatload of TIF money and other concessions, and end up with a huge building bristling with robots, AI computers, and drones. 

1 comment:

  1. Amazon is building an administrative center, not a distribution center. Yes, it could contain research on AI, drones or whatever, but it will not be trucking goods out of the buildings. That happens in the south suburbs.
    I live 4 doors south of the Ford Plant property and as a nearby neighbor, vehemently oppose the current plans for Manhattan density housing. And that is only 10K citizens.
    The site is big enough for the Amazon HQ, but traffic would be a nightmare.
    I think if we offer anything, it should be the old Ammunition site off 35W. Lot's of freeway access. Lot's of housing possibilities for 50K employees and there families in the northern suburbs.
    Don't worry, 98% of these folks will be white or asian and make enough money not to cause a stir.
    As you indicate, I don't think we have the talent or creativity to offer a serious challenge to other large cities bidding for this HQ. We sure could use the jobs, but more than 2/3 would be from other states as we don't have the folks they need.
    Fun to think about, but won't happen.
    Have a great day, Dave Gjerdingen

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