Amazon On Pace to Buy Over $120 Billion of Supplies and Services from Businesses in the U.S. in 2021

Rhea-AI Summary

Amazon (NASDAQ: AMZN) plans to spend over $120 billion on U.S. supplies in 2021, up 20% year over year, benefiting over 200,000 American businesses. This spending is estimated to support an additional 840,000 jobs across various industries. CEO Dave Clark emphasizes the importance of partnerships with U.S. businesses, while the U.S. Chamber of Commerce highlights Amazon's role in aiding small businesses during uncertain times. Amazon continues as a significant job creator, with over 400,000 hires in 2020 and 950,000 employees currently.

Positive

• Amazon's projected $120 billion spending in 2021 is a 20% increase year-over-year, indicating strong financial growth.
• The company's spending will potentially support an additional 840,000 American jobs, driving local economic recovery.
• Amazon remains the largest job creator in the U.S., having hired over 400,000 employees in 2020.

Negative

• None.

Amazon (NASDAQ: AMZN) is on pace to spend over $120 billion on supplies and services from businesses in the U.S. in 2021. The purchases are from more than 200,000 companies that operate in communities across the country that help keep Amazon running—from electric vehicle manufacturers to cardboard box producers to construction and engineering firms. The 2021 spending represents an increase of 20% year over year and does not include any of the products Amazon buys and sells to customers in its stores.

“Millions of families rely on us to deliver what they need every day,” said Dave Clark, CEO of Worldwide Consumer at Amazon. “Delivering for our customers takes teamwork—we can’t do it alone. We rely on strong partnerships with hundreds of thousands of American businesses—from our forklift manufacturer in Kentucky to the construction company in Texas that builds our delivery stations. Today is about renewing our commitment to these businesses and betting big on them.”

The spending is also having a ripple effect. An independent analysis from Keystone Economics estimates that Amazon’s expected 2021 spending in suppliers will help local economies and support an additional 840,000 American jobs in multiple industries, including construction, transportation, manufacturing, and hospitality.

“In a time defined by uncertainty, having Amazon as a customer is a lifeline for many small and medium-sized businesses across the country. It’s not just a big vote of confidence, it’s also a source of income that can keep them thriving,” said Tom Sullivan, Vice President of Small Business Policy at the U.S. Chamber of Commerce. “Companies like Amazon are helping pave the way to a broad-based economic recovery.”

“Partnering with Amazon has changed everything for us,” said Jerry Wade, Regional Sales Manager at CTM Labeling Systems, a labeling applications and machinery company in Salem, Ohio. “They called us a few years ago and wanted to use our labeling machines in their fulfillment centers. Since then, we have nearly doubled the size of our facility, invested in more high-tech manufacturing equipment to meet the growing demand, and hired more people to build them.”

Amazon is now the largest job creator in the U.S. In 2020 alone, in the middle of the COVID-19 pandemic, the company hired over 400,000 employees. On top of the company’s 950,000 U.S. employees, there are more than 2 million businesses, content creators, developers, and delivery providers in the U.S. using Amazon products and services to start or grow their careers. Small and medium-sized businesses selling their products on Amazon.com have created more than 1.1 million jobs. In addition, more than 700,000 developers are building skills for Alexa, more than 95,000 drivers are employed by last mile and middle-mile delivery partners, and hundreds of thousands of authors from around the world are self-publishing millions of books through Kindle Direct Publishing.

About Amazon
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210812005284/en/

FAQ

What is Amazon's planned spending for 2021?

Amazon plans to spend over $120 billion on U.S. supplies and services in 2021.

How many jobs will Amazon's spending help support in 2021?

Amazon's spending in 2021 is estimated to support an additional 840,000 jobs.

What was Amazon's hiring rate in 2020?

In 2020, Amazon hired over 400,000 employees.

How much did Amazon's 2021 spending increase from the previous year?

Amazon's spending in 2021 represents a 20% increase year-over-year.

How many businesses benefit from Amazon's spending?

Over 200,000 U.S. businesses are benefiting from Amazon's spending.