If Amazon builds its second headquarters in Sault Ste. Marie it will completely change the economic and cultural landscape of the city says a lecturer in economic and financial geography with the University of Toronto.
Over the summer, the Goliath of online retailing, Amazon, announced it will be building ‘HQ2’, a ‘full equal’ second headquarters to its Seattle location.
The second site could mean 50,000 jobs for a city and $5 billion in investment.
It’s a long shot, but the Sault is sending in a proposal to be that new city.
Let’s say we got it — what would happen?
“Sault Ste. Marie is very similar to the rust belt across the United States (that) is starving for industries to come in and stimulate the economy. If Amazon came to the Sault there would be a huge surge in jobs and the economy. It’s exactly what every Canadian city in the in North and manufacturing town in the U.S. wants,” said Sean Field a lecturer at University of Toronto with an expertise in economic geography, financial geography, and agriculture.
Sault Ste. Marie's Amazon bid committee during its first meeting in September. Composite photo by David Helwig/SooTodayOne of biggest changes the Sault would see, said Field, is infrastructure.
“Amazon is one of those key examples we use in the classroom time and time again – a retail company with no bricks and mortar locations that can go head to head with other retailers."
Field said the closing of stores like Sears created a void and Amazon filled the consumer product.
"It has all the hallmarks of modern globalization since the Internet came into vogue," he said.
The increase in jobs and subsequently people coming to fill those jobs would mean the city would be able to collect more taxes.
Some interesting side effects should occur from this as well.
“Inevitably, with any labour migration, you change the demographics either in age, ethnicity, or whatever else . . . just by the virtual number of people that they need (there would be) increased diversity,” he said. “There would be people, across Canada, the U.S. and other countries with a diversity of backgrounds vying for these jobs to work in some aspect.”
Amazon will bring "a whole series of knock-on effects" that benefit the economy at every level but there could still be businesses that find it harder to survive under a post-Amazon Sault, he said.
If the area improves for business, it would attract large corporate retailers would draw customers away from some other stores — think Costco.
Amazon jobs might not be the best either, said Field.
“The other side of this is that Amazon hasn’t always been the best employer in terms of wages it pays. Even though it has large economic benefits for the region, not all these jobs will be well-paid jobs. Not all the jobs will be great jobs,” he said.
But, does any of this speculation matter? Does the Sault have a chance?
“It’s possible, but I wouldn’t hold my breath,” said Field.