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Ipoc - Press Release - Amazon HQ - Oct 14 2017
Ipoc - Press Release - Amazon HQ - Oct 14 2017
In addition, Canada is more open to technology leaders and as a head office they can
immigration than the United States, and be very sophisticated and demanding clients for
[start-up] ventures in the Toronto-Waterloo, or even
U of T as a whole is attracting fabulous
broader Canadian, ecosystem.
foreign students.
Detractors of HQ2 include online sales pioneer
He adds that concerns about a looming skilled Hyun-June Leonard Ro of Rogistics Supply Chain
worker shortage, including for Torontos booming Distribution who indicates that Amazons dispatch/
start-up community, should not be dismissed and warehouse system has no need for improvement:
will demand thoughtful planning and targeted
government investment.
This is based on the fact that orders are
Its a conversation Toronto should be having placed from the end consumer to the
anyway given the number of foreign companies, main hub, which then dispatches the
from Google to Uber, who are increasing their order to a fulfillment centre (warehouse)
Canadian footprints to be closer to cutting-edge dependent on the origins (location) of
research at places like U of T and gain access to the buyer. As with any synchronized
our skilled and diverse workforce.
supply-chain process (logistics), the
Were going to want to make sure the university increase in a variable meaning supply-
system and the corporate system is investing in the chain participant... increases the
kind of skills and talent we need to keep up with complexity, along with the number of
demand going forward. participants within the synchronization
process. In effect, the process becomes
Ed Clark, the former CEO of TD Bank, offered a more complex with every additional
similar assessment during a recent interview with
Business News Network. variable whether it is on the logistics
side or the number of HQs for that
It has to be a package, frankly, where all of the matter Hyun-June Leonard Ro
universities in Ontario come together and say,
Lets mobilize to fill this demand, but not just for Hyun-June Leonard Ro adds: In my view, Ed
[Amazon],' said Clark, who is heading Torontos Clarks view of a virtuous cycle is an optimistic
bid for Amazons HQ2. Such investments would outlook which negates economics and practicality.
create a virtuous cycle, he said. Part of the He may have made the comment when he was
attraction of getting someone like Amazon is you high on drugs, since the mobilization to fill demand
start building that ecosystem, so you get other of Amazons new HQ may result in increased online
people coming, too. purchases, however this would obviously create a
void or perhaps reduction in sales, and layoffs in
As for those who argue we are better off ignoring the traditional brick-and-mortars (storefront)
the Amazons of the world and focusing instead on operations of Wal-mart and Canadian Tire for
building national champions, Macklem says the example. Although ideally, it would be beneficial for
reality is both are needed if Canada is to become a the Canadian economy to house an Amazon HQ
true global technology hub. locally, Amazon already has warehouses in
Vancouver, Montreal and Mississauga, therefore
Theres no question that having 10 more Shopifys the HQ would act as an intermediary-function to the
would be wonderful, he says, referring to the Seattle based operation, which inadvertently may
Ottawa-based e-commerce platform. But attracting create additional problems, along with added
an Amazon would be complementary. They are expenditures. The online marketplace is based on
PRESS RELEASE: OCTOBER 8, 2017
reducing the cost associated with fulfillment of the increase the bottom line as you would say
end-consumer orders and this in effect may