Amazon HQ2 plans could make defense contracting even more competitive
Amazon HQ2 plans could make defense contracting even more competitive
Plans to add a new twin regional headquarters will intensify the already deep rivalries between the giant Seattle and the US defense firms.
Amazon's short list includes a site in the Crystal City area in Arlington, Virginia, at the Pentagon's gate and the Washington defense establishment, where companies like
Employ thousands of employees.
The appearance of Dallas as a contender would put Amazon in another large industrial group that includes
Lockheed Martin
Corp.
, which produces F-35 fighter jets and missiles in the region.
Amazon plans to establish twin sites that would grow to 25,000 employees each in each of the two cities chosen, the Wall Street Journal reported this week. The company was also in last minute talks with New York City, the Journal reported.
Safe employment
Occupations related to defense and the aerospace industry in the Washington, DC area were selected for 2017
Software developer:
Applications
Software developer:
system software
Network / computer
systems administrator
Computer / information
system Manager
Information security
analyst
Computer network
architects
Operations research
analyst
Atmospheric/
space scientists
While the e-commerce giant has not revealed what kind of work it plans to do, Amazon is also seeking agreements related to the defense and intelligence sectors, according to industry executives.
Amazon declined to comment. The availability of trained workers, transport links and other infrastructures have been fundamental for your search.
Defense companies already face a difficult labor market, especially in northern Virginia, home to most of the nation's military contractors' headquarters and intelligence agencies.
"Competition for talent is now much broader," said Horacio Rozanski, executive director of
Booz Allen Hamilton Holding
Corp.
, the government services specialist based in McLean, Virginia, just north of Crystal City.
"When a cybernetic person in Booz Allen is attacked, it's not just the usual suspects.
"It will call them, Google will call them, Amazon Web Services will call them," he said at a recent event with investors.
"We have been competing for technological talent for a while, and I think we are more than in our power," Mr. Rozanski said separately, in a recent earnings call when asked about the possible arrival of Amazon.
Other established defense players with a strong presence in the region refused to comment on the potential impact of Amazon's action.
Amazon wants to deliver everything you want to your door, anywhere in the world. But the e-commerce giant faces several challenges in its search for a global empire. Karan Deep Singh of WSJ analyzes the basics with the help of an Amazon delivery box.
Amazon is already competing for wanted workers due to its own momentum in the Pentagon hiring. It is the favorite for the Joint Enterprise Defense Infrastructure contract, a $ 10 billion cloud computing deal It is expected to be granted in the coming months, according to people familiar with the situation.
Giants of Silicon Valley as
Inc.
and the father of Google
Alphabet
Inc.
They are also competing with defense contractors and government agencies to take advantage of the same set of experts in fields such as cybersecurity, artificial intelligence and autonomy.
A major obstacle for Amazon and any company wishing to expand in the Washington, DC area is the enormous backlog of Nearly 700,000 workers await security clearance. to allow them to work on sensitive projects.
If Amazon wins the JEDI contract from the Pentagon, it will need hundreds or thousands of personnel investigated, industry experts said.
Jon Barney, a senior client partner at Korn Ferry LLC, a recruitment specialist, said some defense companies reported that they had to skip tenders for certain contracts due to staff shortages, even before Amazon makes new moves in the area.
"CURRENT CONTINUES, it's such a competitive market now," Barney said. "The hiring of enough authorized people is a real barrier to the growth of many companies with government businesses."
Companies are already becoming creative to attract and retain workers, including raising their profile through sponsorship of sports teams. The IT government specialist, Leidos Holdings Inc., sponsors the Washington Capitals winners of the Stanley Cup, for example. And executives have said that the support of youth soccer teams in the Washington area helps boost their profile with possible new hires.
"There is a bit of concern." We are close to structurally zero unemployment, and that at some point will make it harder for us to hire or hire at the rate we have been at, "said Roger Krone, CEO of Leidos, to an investor. Call last month
"We're looking at all the opportunities, employee referrals, bonuses for hiring a friend and things like that, things you're probably seeing in the industry in general," Krone added.
Leias and other companies are moving work out of the capital area to take advantage of new staff groups in cities such as St. Louis, Mo, where the National Geospatial Intelligence Agency is building a new facility.
Only New York City, the third contender on the short list of the Amazon, lacks a large concentration of defense workers. L3 Technologies Inc., a large Pentagon contractor, plans to move from its Manhattan headquarters to Melbourne, Florida, home to Harris Corp. merger partner
Write to Doug Cameron in doug.cameron@wsj.com
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