By most accounts, Austin ranks highly as a possible location for the second headquarters of Amazon.com Inc.
But would the area be able to supply enough tech workers — or enough room to house the thousands who move here — if it wins the contest and up to 50,000 jobs? That is easier to answer thanks to a handy new tool from information technology association CompTIA that allows for metro-to-metro comparisons.
Using the CompTIA breakdown, Austin has a good case to make for its worthiness. But another Texas metro has far and away more tech talent on hand.
Fast-growing Amazon (Nasdaq: AMZN) said it could spend up to $5 billion on HQ2 and build 8 million square feet. The company's request for proposal, released in September, asked for metro areas with at least one million residents, close proximity to an international airport, mass transit, quality higher education, an educated workforce, high quality of life and a business-friendly environment, among other factors.
Amazon hasn’t specified what job functions, divisions or departments it plans to house at HQ2, but it’s likely that it would include many from its cloud computing unit, Amazon Web Services, according to the Seattle Times.
Tech workers also staff the teams that keep Amazon’s retail site running, build the tools that route goods between the company’s warehouses, and handle many other tasks for one of the world’s fastest growing companies. Austin is home to many of them already with about 900 employees at offices at The Domain.
The city that Amazon chooses for its HQ2 will need to have or train about 17,000 software engineers, according to a CBinsights report.
This comes at a time when roughly 250,000 job openings for software developers in the United States remain unfilled.
The 17,000 software engineers will have to be hired from the ranks of the unemployed — slim pickings with the unemployment rate as low as it is — or they'll be be recruited from outside the area, hired upon college graduation or lured away from another company.
That means that metros that already have a critical mass of software and web developers and other tech workers have a clear edge in the race to land Amazon.
So, let’s how does Austin compare on that front? Dallas-Fort Worth has 209,600 tech sector jobs, according to CompTIA. That far exceeds other Texas metro areas including Houston with 136,000, Austin-Round Rock with 113,200, and San Antonio-New Braunfels with 35,200.
Breaking it down further into software and web developer positions, DFW has 39,183, Houston has 21,542, Austin has 20,389, and San Antonio, which bowed out of the running for Amazon’s HQ2, has 6,981 software and web developers.
Perhaps not surprisingly, the nation’s biggest metro, the New York-Newark area, has the most tech workers with 392,400. An impressive 96,068 of those are software and web developers.
It bears mention, however, that tech workers in and around the Big Apple earn $131,000 on average, compared with $108,000 in the Austin area. Plus New York has a state income tax and generally higher housing and other costs of living compared to Texas.
The Atlanta metro area, a frequently mentioned front-runner with Austin for HQ2, has 155,600 tech sector workers. Of those, 32,722 are software and web developers.
The Denver area, another presumed front-runner, has 114,500 tech sector workers, including 24,476 software and web developers.
The Seattle area, where Amazon is based now, has 178,800 tech workers. Some 63,037 are software and web developers, and many of them work for Amazon already.
Moving down the West Coast, the San Jose, Calif., area has 310,900 tech sector workers — the second-biggest supply in the country after New York City. Of those, 74,051 are software and web developers.
The nearby San Francisco-Oakland area has 262,500 tech sector jobs, including 58,971 in software and web development.
In Southern California, Los Angeles-Long Beach has 287,600 tech sector jobs, with 52,185 for web and software developers, the CompTIA tool shows.
Moving west to east for the country's other major metro areas, the number of tech workers and the number of software and web developers are as follows:
Chicago: 190,500 tech jobs; 34,985 software and web developers
Washington, D.C.: 297,900 tech jobs; 64,704 software and web developers
Boston, 263,500 tech jobs; 52,588 software and web developers
Meanwhile, Amazon has cut back on hiring at its Seattle headquarters as the company searches for its location for HQ2.
Amazon received HQ2 bids from 238 locales. A few of the 50-plus sites that were in Austin's bid have been identified, including the Broadmoor campus in North Austin.
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