Why Amazon Reconsidered NYC as HQ2

Why Amazon Reconsidered NYC as HQ2

March 4, 2019

After an in-depth search and selecting the locations for their new second headquarters (HQ2), Amazon has changed its mind.

Amazon had selected two sites for HQ2, to complement its current headquarters in Seattle, Washington.  The two locations were the Crystal City neighborhood of Arlington, Virginia, and Long Island City in Queens, New York.

After considerable pressure from state and local politicians, Amazon has decided against the Queens, New York location.  New York City and the State of New York had offered close to $3 billion in performance incentives.  The addition of 25,000 Amazon jobs was estimated to bring in $27 billion in revenue to New York.

For past OM in the News posts on Amazon’s search for a second headquarters, check out The 20 Amazon HQ2 Finalists and Amazon’s HQ2.


Video Spotlight: Amazon cancels NYC HQ2 plans


This post is based on the CNBC.com article, Amazon says it will not build a headquarters in New York, by Lauren Feiner, February 14, 2019; the Chicago Tribune article, Chicago and Illinois are still after Amazon’s HQ2, or at least part of it, by Aly J. Yale, February 8, 2019; and the YouTube video, Amazon cancels Continue reading

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US XPress Nixes US-Mexican Border Business

US XPress Nixes US-Mexican Border Business

February 9, 2019

U.S. Xpress is reducing its U.S.-Mexico cross-border investment. The move will improve consolidated operating margins.  According to the company, relationships with its former partners in Mexico will continue to enable cross-border service for customers “as a variable cost alternative”.

U.S. Xpress started the exit from its fixed cost investment in the cross-border business by selling off its Mexican entity to existing managers.

In the coming months of 2019, U.S. Xpress will close its trucking terminal in Laredo, Texas, and dispose of 700 dry van trailers. It will use network optimization to reposition 300 domestic tractors, which currently carry loads to and from the border, into more profitable routes.

This post is based on the SupplyChain247 article, U.S. Xpress announces exit move out of U.S.-Mexico cross-border business, by Jeff Berman, January 25, 2019. Image source: Dave Moyer.

Discussion Questions:

1. What are the driving forces behind the U.S. Xpress decision to exit its U.S.-Mexico cross-border business?

Guidance: The company has stated that the decision is to improve its consolidated operating margin by divesting low-return U.S.-Mexico operations. That will improve the company’s core U.S. operations, and provide higher cash flows and profits.

2. How does U.S. Xpress plan Continue reading

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