Amazon pumps nearly $13 billion into Tennessee economy, study says
Aug. 12—This story was updated Wednesday, August 11, 2021, at 10:18 p.m. to correct dollar amount in the headline.
Since Amazon built its first fulfillment center in Tennessee at the Enterprise South in Chattanooga in 2010, the e-commerce giant has hired more than 25,000 workers and invested nearly $13 billion in facilities and payroll across the Volunteer State, according to a new economic study released Wednesday.
Despite its ongoing threat and undermining of many traditional brick-and-mortar retail outlets, Amazon has helped add an estimated 64,000 direct and indirect jobs in Tennessee through its network of warehouses, distribution facilities and stores. Amazon's fulfillment centers in Chattanooga and Charleston and its Whole Food grocery outlets in North Chattanooga and East Brainerd employ more than 5,000 full- and part-time jobs during the busiest shipping times of the year, making Amazon one of the largest private employers in Southeast Tennessee.
"From its multiple fulfillment and distribution centers in each grand division to its Operations Center of Excellence in Nashville, Amazon has created tens of thousands of jobs for Tennesseans," Tennessee Gov. Bill Lee said. "I thank Amazon for not only creating jobs, but providing its employees with benefits and skills training for long-term success."
Amazon has boosted the starting wage for all of its jobs to at least $15 an hour and all full-time employees are offered health insurance and other benefits, including up to 20 weeks of paid parental leave and tuition reimbursements for college training. Amazon claims to be the fastest job creator in America, although its e-commerce growth in many instances has led to the shutdown of traditional bookstores and some retail outlets.
According to Digital Commerce 360, Amazon's revenue from U.S. consumers' web purchases amounted to 30.7% of U.S. online retail sales in the first quarter of 2021.1 In 2020, e-Commerce spiked to account for approximately 21.3% of U.S. retail sales, meaning Amazon accounted for about 6.5% of all retail spending.
Nationwide, Amazon pays more than $160 billion a year in compensation to its U.S. workers, according to the report prepared by economists at Keystone Strategy.
"The promise of delivering for our customers, the creation of good jobs, and the generation of economic opportunity has been always at the forefront of our investing strategy," said Holly Sullivan, vice president of economic development at Amazon. "We've seen the positive ripple effects of our investments and we're committed to continue investing in the U.S., our employees, and their communities."
The pay and benefits have helped Amazon limit unionization attempts at its warehouses, which the company has strongly opposed. Last year at a unionizing election at an Amazon warehouse in Bessemer, Alabama, workers voted 1,798 to 738 against joining the union. But earlier this month, the National Labor Relations Board ruled that Amazon has unlawfully interfered in the union election and ordered that the election be conducted again.
Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340
