Four Key Benefits That Incoming Big Tech Companies Will Bring to Nashville
Updated: Jan 30, 2022
When Amazon selected Nashville as its East Coast Logistics hub destination back in 2018, they brought with them a promise of 5,000 high paying tech-centered jobs. The past has shown us what has happened in cities like Seattle where Amazon has influenced the area, as we are already experiencing a wave of other high end companies looking to invest in Nashville. General Motors promising to build their new electric vehicle battery factory at their current Tennessee headquarters just south of our City of Music is a perfect example of this. Oracle is also now expected to bring 8,500 new jobs if they sign the deal to build their million square foot campus, and that'll cause Nashville to explode in size in just a few years.
But what does all this mean for YOU, its residents? Well the good news is that there is actually a lot of good news when it comes to discussing the implications of what this could mean for Nashville and the whole of Tennessee. Let’s discuss some of the positives:
The New Jobs Are All Seemingly High End Tech Jobs
More educated professionals flocking to the same city means that the city in question will be more likely to have more tech start-ups and innovative small businesses popping up around town. One reason big tech is choosing Nashville is the amount of tech focused residents that already live in the surrounding areas. Amazon, for example will be paying on average, $100,000 for the salaries or their incoming employees which will undoubtedly draw in even more up and coming tech based talent. Higher paying jobs in the area will spur local businesses as these employees will need somewhere to spend their high wages. Grocery stores, hair salons, gyms, restaurants, etc. will see an immediate impact.
Cities with higher populations of educated professionals also tend to draw the attention of other larger businesses wanting to grab a piece of the local talent. This tends to cause a domino effect that will eventually bring even more large companies and opportunities to the area. Not to mention who doesn’t want to live in a more educated area of the country?
More People With Higher Income Means More Housing Options
As Amazon has shown us with the building of their large Nashville Yards high rise when large companies move into an area they also tend to invest heavily in housing for their employees. Back in 2018, Amazon pledged more than $2 billion dollars in loans and grants to help their major hub cities with housing. In fact according to Nashville Business Journal’s Adam Sichko, Amazon has just signed a lease for the 2nd of its two planned high rises.
Now at first that may seem like the rent prices are going to go up and while over time they inevitably will as rent has been shown to steadily increase over time following the economy. But the big difference is these companies don’t want to have their employees struggling with rent or housing in the future so they often directly invest in apartment complexes and neighborhoods so they can keep the prices down. With rent being held down and average wages going up the property value will begin to increase as well which is always a plus for land owners in the area.
An Increase In The Average Monthly Wage
Because these large businesses tend to pay their employees more, the average income for Nashville and the surrounding area is going to increase. This fact comes with a lot of benefits for us, the current residents, even if we don’t plan on switching jobs. The most easily recognizable positive, will be that the money these employees make will begin circulating and stimulating the local economy. That means supporting businesses (businesses that serve these employees) will begin to see more cash flowing in their direction.
When more cash flows locally around Nashville because there are more residents with money, local businesses will also begin to thrive. More money in local businesses will also spur on the growth and creation of even more small businesses in the area. This is a powerful snowball effect that will undoubtedly bring more money to Nashville in general especially to those that are able to create successful businesses.
Local Businesses Will Begin To Diversify
Swinging back around to the local supporting businesses I would be remiss if I didn’t mention how food and service based businesses tend to follow the needs of their potential clientele. This is good news if you enjoy being surrounded by more diverse options in food and entertainment.
As these new employees begin filling out the ranks of Amazon, GM, and hopefully Oracle they will bring with them their own cultures. As the variety of culture begins to explode so will variety of innovative entertainment and culinary options. While we all enjoy the nationally famous BBQ found here who also doesn’t enjoy a nice bowl of Pho, or a healthy plate of sausages and sauerkraut. Maybe you’ve never played a game of cricket, chances are with a more diverse population you’ll have more opportunities to try these different experiences. Not to mention these new experiences will make for some new amazing spots for a date or even just a night on the town. While all this change may start off a bit overwhelming I have no doubt it will only add to our amazing city and local culture, so personally I am excited about the change and will be welcoming big tech with open arms.