Amazon expects to increase its spend on supplies and services from businesses in the U.S. by 20% year-over-year.
According to the e-tail giant, it is on pace to spend over $120 billion from more than 200,000 companies operating across the U.S. in 2021. The spending includes purchases from organizations including electric vehicle manufacturers, cardboard box producers, and construction and engineering firms. The anticipated 2021 spending represents an increase of 20% from 2020, and does not include any of the products Amazon buys and sells to customers in its stores.
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.
Amazon also says it is now the largest job creator in the U.S. In 2020, the company hired over 400,000 employees, and has total of 950,000 U.S. employees. In addition, more than 700,000 developers are building skills for the Amazon Alexa voice assistant, and more than 95,000 drivers are employed by Amazon’s last mile and middle-mile delivery partners.
“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.”