Amazon announces 1,500-job distribution center in Tucson (2024)

Amazon announces 1,500-job distribution center in Tucson (2)

Last September,Amazon politely returned a giant saguaro cactus that Tucson economic development officials had sent in hopes of landing the company's coveted headquarters expansion.

That didn't work out well for Tucson,as no Arizona cities made the cut forHQ2. Butthe online retailer has given Tucson anotable consolation prize: a new fulfillment center that the company announced May 16.

The new facility, the first such for Amazon in Tucson, will employ more than 1,500 people, with the ability to go higher during peak shopping seasons. Amazon already employs about 7,000 Arizonans, primarily in metro Phoenix metro, at four other fulfillment centers and other facilities.

The Seattle-based online retailing giantranks among Arizona's 25 largest nongovernmental employers, according to this year's Republic 100 report.

Amazon also claims it's responsiblefor 18,000 supporting jobs in Arizona, in addition to its direct employmentin the state.

The announcement of more than1,500 positionsis big news for the Tucson area, which added just 8,300payroll jobs over the 12 months through March,the Arizona Office of Economic Opportunity said.

Job dutiesand benefits

The workers at the planned 855,000-square-foot fulfillment center will select, pack and ship small merchandisesuch as books, electronics, household items and toys.

That center, to be in the Port of Tucson, an intermodal shipment districton the city's southeast side, will also havean unspecified number of professional jobs such asfacilities technicians and human resources personnel.

The fulfillment center isscheduled to be completed around mid-2019, with hiringbeginning a month or two before that.

In astatement, Amazon said new hires will receive"competitive hourly wages," which were not specified, plusbenefits that includehealth insurance, a 401(k) retirement plan and company stock awards.

AnotherAmazon perk iscollege tuition forcourses related to "in demand fields" such as game design, nursing andinformation technology programming, even if the skills aren'trelevant to a career at Amazon.

Mark Stewart, vice president ofAmazon’s North America Operations,said the state-of-the-art fulfillment center will provide for great career opportunities and customer experiences.

Gov. Doug Ducey, also in a statement, said the facility will generate significant capital investment in the region, adding that it's a sign "Southern Arizona has a lot to offer businesses in terms of talent, location, pro-business environment and quality of life."

Amazon didn't mention Mexico as a factor in selecting Tucson, but the city's mayor,Jonathan Rothschild, said more global companies are "recognizing the advantages Tucson has to offer as a logistics hub and gateway to Mexico."

Amazon announces 1,500-job distribution center in Tucson (3)

Cactus cited in message

Joe Snell,president and CEO of the Sun Corridor economic development group in Tucson,cited the saguaroin announcing the new fulfillmentcenter.

"Many of you remember our bold move with a cactus gift to Amazon lastfall," he wrote in a note to stakeholders. "We sent a compelling message that we have room for Amazon to grow here, and nothing signified that better than a saguaro cactus."

Snellsaid the planned structure will be one of the largest ever built in Tucson. He also said theannouncement culminated eight months of working with Amazon and collaborating with groups including the governor's office, the Arizona Commerce Authority, Pima County, Tucson andTucson Electric Power.

Other distribution centers operating in the Tucson area include those forTarget.com andhome-furnishings retailer HomeGoods.

Amazon hasn't yet named the winning city for its second headquarters. As USA TODAY has reported, 20 cities are fightingto land the 50,000 jobs and $5 billion in investment Amazon is offering for itssecond headquarters, dubbed HQ2.

Enrico Moretti, a University of California, Berkeleyeconomics professor, has calculated thatthosenew Amazon employeeswill, in turn, produceas many as 250,000 indirect jobs.

Reach the reporter at russ.wiles@arizonarepublic.com or 602-444-8616.

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Amazon announces 1,500-job distribution center in Tucson (2024)
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