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Amazon.com
Inc.
AMZN 5.43%
plans to add two new regional headquarters may intensify the rivalry already existing between the Seattle giant and US defense companies.
Amazon's shortlist includes a site located in the Crystal City area of Arlington, Virginia, at the gateway to the Pentagon and the Washington defense establishment, where companies such as
Boeing
Co.
BA 0.65%
employs thousands of people.
The emergence of Dallas as a pretender would place Amazon in another big industrial group including
Lockheed Martin
Corp.
, which produces F-35 jet fighters and missiles in the region.
Amazon plans to create a double seat with 25,000 employees in each of the two cities, the Wall Street Journal reported this week. The company was also in last-minute talks with New York City, the newspaper reported.
While the e-commerce giant has not revealed the kind of work it plans to pursue, Amazon is also seeking contracts related to the defense and intelligence sectors, according to industry leaders.
Amazon declined to comment. The availability of skilled workers, transportation links and other infrastructure has been at the center of his research.
Defense companies already face a difficult labor market, particularly in northern Virginia, where most of the military and intelligence services headquarters are located.
"The competition for talent is now much broader," said Horacio Rozanski, general manager of
Booz Allen Hamilton Holding
Corp
, the government services specialist based in McLean, Virginia, just north of Crystal City.
"When a Booz Allen user is alerted, it's not just the usual suspects," he said. "
Bank of America
call them, Google will call them, Amazon Web Services will call them ".
Defense actors established and very active in the region have declined to comment on the potential impact of the Amazon movement.
Amazon is already competing with wanted workers because of its own momentum in contracting with the Pentagon. It is at the forefront of the common defense infrastructure business contract, a $ 10 billion deal on cloud computing that is expected to be awarded over the next few months, according to reports. people close to the situation.
The behemoths of Silicon Valley like
Facebook
Inc.
and Google parent
Alphabet
Inc.
also compete with defense contractors and government agencies to tap the same pool of expertise in areas such as cybersecurity, artificial intelligence and autonomy.
A huge hurdle for Amazon and companies wishing to expand in the Washington, DC area is the huge backlog of nearly 700,000 workers waiting for security checks to work on sensitive projects.
If Amazon wins the Pentagon's JEDI contract, it will require hundreds, if not thousands, of approved staff, industry experts said.
Jon Barney, one of the leading client associates of recruitment specialist Korn Ferry LLC, said some defense companies said they had to avoid bids for certain contracts because of the shortage of staff, even before Amazon moves to the region.
"D.C. is such a competitive market now, "said Barney." Hiring a sufficient number of authorized people is a real hindrance to growth for many businesses doing business with the government. "
Companies are already creatively attracting and retaining workers, particularly by strengthening their profile by sponsoring sports teams. Government IT specialist Leidos Holdings Inc. sponsors, for example, the Washington Capitals, winners of the Stanley Cup. Leaders also said that support for the Washington DC youth football teams would help it to grow with potential new recruits.
"There is a little bit of concern. Our structural unemployment rate is zero zero, which will make it more difficult for us to hire or hire at the rate we are doing it, "said Roger Krone, Leidos' Chief Executive Officer, about an investor. call last month.
"We're looking at all the opportunities, the employee recommendations, the hiring bonuses from your friend, etc., things you probably see in the industry," Krone added.
Leidos and other companies are relocating jobs outside the capital to tap new staff pools in cities such as St. Louis, Missouri, where the National Geospatial Intelligence Agency is currently building new ones. local.
Only New York City, third candidate on the list of Amazonian finalists, lacks a large concentration of defense workers. L3 Technologies Inc., a major Pentagon contractor, plans to move from its headquarters in Manhattan, Melbourne, Florida, to its merging partner, Harris Corp.
Write to Doug Cameron at [email protected]
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