Amazon will build a new “fulfillment center” in Orange County, Florida, just south of the Orlando airport, the Orlando Sentinel reports.
The company acquired the land on which the 850,000 square foot facility is to be built from Tavistock Development, who has long been working to bring large companies into the area.
“We are bullish on attracting well respected, global brands like…Amazon to Lake Nona [an Orlando business district Tavistock helped create],” said Tavistock president Jim Zboril.
It is easy to see why. The new center is expected to employ about 1500 people to “pick, pack, and ship small items…like books, electronics, and consumer goods,” according to a statement by Amazon. Moreover, Amazon will work with the county to refurbish the facility’s main access road, Boggy Creek Road.
The county has agreed to pay $12.5 million of the $14 million it is expected to cost to update the road. There is no word as to whether the government will offer Amazon any job creation incentives at the new facility, but governments in Florida and around the country have set precedents by doing so.
“We look forward to bringing more jobs and investment to [Florida, specifically Orlando] in the coming months,” said Amazon’s Vice President of North American operations, Akash Chauban.
A similar Amazon center in Ruskin, Florida (just south of Tampa), has about 2,500 year-round employees.
That figure does not include robots, which are an integral part of Amazon’s order fulfillment operations. When Amazon receives notification that a customer has ordered a product, a robot finds that product on the shelf and delivers it to an employee, who places it in a tray.
A second employee packs the product, and a third loads it onto the truck.
When Amazon began operations in 1997, it had just two distribution centers: a 93,000 square foot facility near the company’s Seattle, WA headquarters, and a bold 202,000 square foot affair on the opposite coast, in New Castle, Delaware. Those centers were primarily manual.
Today, Amazon has 105 active fulfillment centers throughout the US, and is in the process of building 34 more, according to MWPVL international, a logistics and supply chain consulting company.
The active facilities cover a total of 78,480,700 square feet, making each one just under 750,000 square feet, on average. Each new facility will cover almost 818,000 square feet, on average.
That square footage is supplemented by mezzanine levels built to accommodate robots. The usable square footage of the Orlando facility is expected to triple as a result of such additions.
In January of this year, Amazon founder and CEO Jeff Bezos announced a plan to create over 100,000 full-time jobs in the US by the middle of 2018. From 2012 to 2017, the company created openings for 150,000 US workers.
The planned acceleration of job creation comes as Amazon continues efforts to increase shipping efficiency by constructing new fulfillment and distribution centers, and explores innovations in “areas like cloud technology, machine learning, and advanced logistics,” Bezos says.
With the acquisition of Whole Foods, announced in June, the company is poised to expand its Amazon Fresh online delivery service, perhaps creating even more new jobs.
Only seven US companies, including Wal-Mart, Kroger, and The Home Depot, employ more people than Amazon, which has just over 340,000 employees worldwide.
Walmart pays 2.3 million workers, over five times as many as any other American company. Kroger, next most prolific American employer, pays just over 440,000 workers.
Amazon has a ways to go to catch Wal-Mart, but if all goes according to plan for Amazon over the next year or so, it could employ over 400,000 people by the middle of 2018, and could perhaps become the second most prolific US employer.
The new Orlando fulfillment center marks yet another step in the right direction for the tech behemoth.
As of 12:42 EDT Monday, Amazon’s stock had risen 1.93% on the heels of the morning’s announcement.
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