EAST LANSING, MI— January 19, 2018— The AEG HQ2 Index was strikingly accurate in predicting which cities would be selected to move onto the next round in the site selection process for Amazon’s next headquarters. Anderson Economic Group also updated the Index to include two new cities and reflects details from the recent announcement.
The AEG HQ2 Index—released in October 2017 by Anderson Economic Group—captures a city’s measurable advantage in attracting Amazon’s HQ2. The index takes into account data on a range of metrics that will be pivotal in determining the location of Amazon’s next headquarters, according to specific details outlined in Amazon’s request for proposals for HQ2.
Here’s how the AEG HQ2 Index measured up:
• 16 of the 20 cities selected by Amazon are located in the top 21 (out of 35) metro areas on the AEG HQ2 Index.
• The top 8 metro areas on the HQ2 Index accounted for an amazing 11 selections on the Amazon shortlist (the Washington, DC and New York metro areas both had multiple proposals selected to be finalists).
• None of the 10 metro areas ranked lowest on the AEG HQ2 Index were selected.
“Since there are many factors that go into a decision for a headquarters, we were surprised by how predictive the AEG HQ2 Index turned out to be”, said Jason Horwitz, director of public policy and economic analysis. “It appears Amazon has stuck to locations that meet some of the more objective requirements outlined in the RFP. I'll be interested to see if there are other, less predictable and quantifiable factors that come into play as Amazon narrows down the list further in the coming months”
Using the same methodology and ranking as the first release, Anderson Economic Group also added Columbus and Pittsburgh to its HQ2 Index, two cities that made Amazon's shortlist. These cities were previously left out of the ranking because they did not meet the expectations listed in the RFP. An updated map including them is pictured below.
About Anderson Economic Group
Anderson Economic Group, LLC, is a research and consulting firm that specializes in economics, public policy, finance, market analysis, and land use economics. AEG has performed studies on site selection, economic impact, business taxes, and the effectiveness of incentives across the country.
Tyler Marie Theile
Anderson Economic Group, LLC