How Would Amazon's HQ2 Impact Georgia's Small Businesses?

Date: June 06, 2018

Amazon hasn’t decided yet which of the cities on its shortlist will win the bid to be the location for its second headquarters (HQ2), but in the meantime, Atlanta is grappling with what it could mean if the Georgia capital is chosen.

On the one hand, advocates say an Amazon location in Atlanta could mean the creation of thousands of jobs, real estate investment that will spur development of the area, increased education funding, and a boost to public transit expansion. On the other hand, opponents warn that the arrival of Amazon could come with rising housing costs, worse traffic, and strains on the city’s infrastructure and overall community. Some, such as the Atlanta Against Amazon group, also worry it could push smaller companies out of business.

As with anything, there would no doubt be both benefits and drawbacks to the decision, but if Atlanta should learn anything from Seattle, it’s that the city should be prepared for fast growth. Seattle political and community observers, myAJC reported, say that HQ2 could solidify the Atlanta region as a global business area, but that city and community officials should plan ahead to avoid the problems Seattle has experienced, including high costs of living, resident displacement, and a housing crisis. Michael Schutzler, CEO of the Washington Technology Industry Association, told myAJC that Atlanta should be proactive and think about the infrastructure needs of not just the Amazon jobs, but the other 250,000 jobs that will get ramped up around the internet giant, such as in schools, hospitals, and police and fire departments.

Amazon is expected to make its final decision in the next six months. In the meantime, an analysis from myAJC earlier this year found there were a number of factors in Atlanta’s favor—including airport connectivity, an educated workforce, high quality of life, diversity, and a business-friendly climate—as well as several measures that the city didn’t perform as well on: higher housing costs and general cost of living, as well as traffic congestion. However, a $2.5 billion half-penny sales tax approved by voters in 2016 for transit expansion and a state lawmaker-approved measure allowing Atlanta metro counties to join a regional transit network could help, as could the $1 billion (or more) incentive package of tax credits, grants, and proposed infrastructure improvements that Georgia leaders have offered the Amazon team.

Related Content: Small Business News | Economy | Georgia

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