Amazon is looking for a second HQ. Why not, Pittsburgh? (Philadelphia: homeowners insurance, buying a house)

[jea6321]

Originally Posted by erieguy

Why would Amazon truly want to come here when they can go most anywhere they want?

I think it would be awesome, and I get the hype, but imo the area is being extremely overrated when it comes to thinking Amazon would want to come here.

I still always come back to payroll. Amazon can pay a lot of people in Pittsburgh high 4 to low 5 figures and they will feel like they are making great money. In DC or NY, they can't even afford rent and bills on those salaries. Extrapolate that over a decade and 20-50k people and the financials of going to a cheaper city are quite obvious.

Seattle was not an expensive city when they started up, and now its very expensive. I can't believe that they are not seriously taking payroll cost into consideration when its the single largest expense of the company.

Amazon is going to end up where ever they believe will be the best to continue to grow and profit over the next 20+ years.

[Paul2421]

Originally Posted by jea6321

I still always come back to payroll. Amazon can pay a lot of people in Pittsburgh high 4 to low 5 figures and they will feel like they are making great money. In DC or NY, they can't even afford rent and bills on those salaries. Extrapolate that over a decade and 20-50k people and the financials of going to a cheaper city are quite obvious.

Seattle was not an expensive city when they started up, and now its very expensive. I can't believe that they are not seriously taking payroll cost into consideration when its the single largest expense of the company.

Amazon is going to end up where ever they believe will be the best to continue to grow and profit over the next 20+ years.

but the cmu people aren't going to take the low salaries. so that negates the advantage of having them here somewhat. but of course the other universities would supply talent.

to some other points, what are the "urban" locations under consideration? hazlewood green will be an office park. civic arena site i'm guessing?

[jea6321]

Originally Posted by Paul2421

but the cmu people aren't going to take the low salaries. so that negates the advantage of having them here somewhat. but of course the other universities would supply talent.

to some other points, what are the "urban" locations under consideration? hazlewood green will be an office park. civic arena site i'm guessing?

But that same CMU grad if employed in Pittsburgh will be happy with a 130-150k salary, where as in DC or NYC they would need 200k+ to live the same lifestyle. The COL works across the entire spectrum of the pay scale. Its Billions of dollars in savings to the bottom line to be in a cheaper city.

[eschaton]

Originally Posted by jea6321

But that same CMU grad if employed in Pittsburgh will be happy with a 130-150k salary, where as in DC or NYC they would need 200k+ to live the same lifestyle. The COL works across the entire spectrum of the pay scale. Its Billions of dollars in savings to the bottom line to be in a cheaper city.

Yeah. There's a reason why there's a huge outflux of techies from the Bay Area to Austin these days. You can make serious cheddar in a high cost area, and still have to live with roommates.

[djfiler]

Originally Posted by Paul2421

but the cmu people aren't going to take the low salaries. so that negates the advantage of having them here somewhat. but of course the other universities would supply talent.

to some other points, what are the "urban" locations under consideration? hazlewood green will be an office park. civic arena site i'm guessing?

Having earned a masters from the school of computer science at CMU, I feel comfortable in disputing this. A large percentage of my fellow graduates would have stayed in Pittsburgh if jobs were available.

For undergrads, high 5-figure salaries are enough for them to buy a home here immediately upon starting their career. In many other tech cities, people earning 2 to 3 times as much still can't afford homes near the CBD. Tech workers in other cities are forced to cohabitate or endure long commutes. That's a very real phenomenon outside of Pittsburgh. In some metro areas, graduates can't afford to rent by themselves unless they're willing to drive 2 or 3 hours a day.

[Copanut]

Originally Posted by tyovan4

There is a difference between choosing a blank slate, and choosing a slate that is cracked and held together by fraying duct tape.

At one point in time, Pgh had a bangin location. Rivers, coal, and choo-choo trains? Bangin for the steel industry. That industry is as dead as my mill hunky ancestors that slaved away in the mill in Steelton.

The geography of Pittsburgh is detrimental in this new economy. It's isolated from the coasts, the Turnpike is highway robbery and unpleasant to drive, there are few rail connections, domestic air connections are limited.. the topography makes infrastructure difficult and expensive. The economic collapse and poor governance leading to neglected maintenance is finally reaching a crisis point.

Wow, I better get out of here.

[djfiler]

lol, it appears 3 of us simultaneously made similar posts regarding salary and cost of living. It really is key to Pittsburgh's chance of landing HQ2. There is a housing affordability crisis in most our high tech cities and Pittsburgh is a notable exception. Median rent actually decreased last year in Pgh.

I predict that nationally, cost of living problems will continue to worsen for the foreseeable future. Housing affordability is already the most talked about issue in many cities. With the wealth distribution gap widening to historical extremes, it will likely become the paramount issue across the country. This topic will be the central socioeconomic issue of the next few decades. That makes Pittsburgh's affordability quite a selling point for companies wanting to relocate.

[Copanut]

Yo, T-4, EVERY city has its good and bad points. Traffic, try Philly, DC, or Phoenix. Corrupt government, try Philly, Detroit, and Chicago. And the hills, rivers, and lack of a grid is what makes this city different from Cleveland and Minneapolis. Granted, the weather sucks. Get on any city forum and you'll hear the same things.

[Katarina Witt]

Originally Posted by jea6321

I still always come back to payroll. Amazon can pay a lot of people in Pittsburgh high 4 to low 5 figures and they will feel like they are making great money. In DC or NY, they can't even afford rent and bills on those salaries. Extrapolate that over a decade and 20-50k people and the financials of going to a cheaper city are quite obvious.

Seattle was not an expensive city when they started up, and now its very expensive. I can't believe that they are not seriously taking payroll cost into consideration when its the single largest expense of the company.

Amazon is going to end up where ever they believe will be the best to continue to grow and profit over the next 20+ years.

Seriously? High 4 to low 5 figures is about $10K/year. That is roughly $5/hr, lower than minimum wage.

[PghYinzer]

Originally Posted by Katarina Witt

Seriously? High 4 to low 5 figures is about $10K/year. That is roughly $5/hr, lower than minimum wage.

Probably safe to assume that is a typo...high 5 figures, low 6 figures.