Amazon scales back plans for new Tucson-area warehouse (2024)

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  • Gabriela Rico
  • Updated

Amazon scales back plans for new Tucson-area warehouse (1)

Gabriela Rico

Amazon has curtailed staffing plans for its new warehouse in Marana.

The company recently informed the town that the projected 500 to 700 employees has been lowered to 200 at the 65-acre site on Silverbell and Ina roads.

“They plan a slow roll,” said Jason Angell, Marana’s development services director. “They’re going to slowly phase in but expect to begin operations this fall.”

Amazon did not give Marana a reason for the paring down of jobs and did not respond to an interview request from the Star.

But the online retailer closed or canceled plans for more than 25 warehouses around the country last month. None in Arizona.

Since 2020, Amazon grew its warehouse space from 272 million square feet to 525 million square feet at the end of 2021.

In Tucson alone, the company has five sites.

But, analysts say inflation and shoppers returning to stores in 2022 impacted online demand.

An apartment complex next to the Marana facility, at Silverbell and Ina roads, is moving forward.

Developer Ross McCallister, principal of MC Companies, said the site was chosen before Amazon announced its plans to operate there.

“We feel the Marana area is underserved with apartments so that’s why we picked that site, in addition to its proximity to area amenities as well as easy access to I-10 and employment centers downtown, UA and the airport,” he said. “While I was looking forward to having all these employees next door, I was also nervous about the round-the-clock activity (so) I am not concerned that Amazon’s cutbacks will affect us.”

Amazon scales back plans for new Tucson-area warehouse (2)

The Place at Silverbell Gateway, a 300-unit luxury apartment complex, at 7430 N. Silverbell Road, is expected to open next year.

Aerial photos of Tucson in 1968

Amazon scales back plans for new Tucson-area warehouse (4)

Amazon scales back plans for new Tucson-area warehouse (5)

Amazon scales back plans for new Tucson-area warehouse (6)

Amazon scales back plans for new Tucson-area warehouse (7)

Amazon scales back plans for new Tucson-area warehouse (8)

Amazon scales back plans for new Tucson-area warehouse (9)

Amazon scales back plans for new Tucson-area warehouse (10)

Amazon scales back plans for new Tucson-area warehouse (11)

Amazon scales back plans for new Tucson-area warehouse (12)

Amazon scales back plans for new Tucson-area warehouse (13)

Contact reporter Gabriela Rico at grico@tucson.com

Tags

  • Tucson-real-estate
  • Amazon-tucson
  • Amazon-distribution-centers
  • Town-of-marana
  • Mc-companies
  • Silverbell-gateway-distribution-center
  • The-place-at-silverbell-gateway
  • Tucson-apartments
  • Major-industry

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Amazon scales back plans for new Tucson-area warehouse (2024)

FAQs

How many Amazon warehouses are in Tucson? ›

Since 2020, Amazon grew its warehouse space from 272 million square feet to 525 million square feet at the end of 2021. In Tucson alone, the company has five sites.

What are they building at Ina and Silverbell in Tucson? ›

The facility near Ina and Silverbell will be 220,000 square feet on 65 acres of land. TUCSON, Ariz.

Where is the largest Amazon fulfillment facility located? ›

Amazon MQY1 Fulfilment Centre

The e-commerce giant has a combined worldwide capacity in excess of 166 million square feet in its distribution centres alone, with many in excess of 1 million square feet. Perhaps the largest however, is a new facility for 2021 in Mt. Juliet, Tennessee.

Why is Amazon building so many warehouses? ›

Amazon builds more warehouses to provide faster delivery to customers by locating closer to population centers. As Amazon grows, it needs additional warehouses to quickly fulfill increasing customer orders. Locating more warehouses near customers reduces response times.

How many employees does the average Amazon warehouse have? ›

Around 800,000 square feet in size, sortable fulfillment centers can employ more than 1,500 full-time associates. In these buildings, Amazon employees pick, pack, and ship customer orders such as books, toys, and housewares.

How many people does Amazon employ in Tucson? ›

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.

Which state has the most Amazon warehouses? ›

Amazon has warehouses in almost every state and province in North America and Mexico. According to CNBC, Amazon has more than 110 active fulfillment centers in the US and more than 185 centers globally. The states with the most Amazon warehouse locations are California, Texas, Illinois, Florida, and Pennsylvania.

How does Amazon decide where to put warehouses? ›

Amazon chooses locations based on customer proximity, positioning warehouses close to major population centers to minimize shipping and delivery costs. Transportation infrastructure.

What is the difference between Amazon warehouse and Amazon fulfillment center? ›

What is an Amazon fulfilment centre? The name reflects the function: Amazon fulfilment centres are charged with fulfiling customer orders. In other words, Amazon warehouses not only store products but also serve as distribution centres where associates pick, pack, and ship orders quickly and efficiently.

Why is Amazon closing so many distribution centers? ›

Amazon is closing, canceling or delaying warehouses across the U.S. after its pandemic expansion left it with too much space. Employees have been laid off at at least two delivery stations, or facilities that serve as the last stop before packages are dropped at shoppers' doorsteps.

Why do so many people quit Amazon warehouse? ›

Engadget reports that mobility concerns are the primary reason for managers quitting Amazon warehouses and the second-highest reason for other staff members who work the floor.

How long does it take to build an Amazon warehouse? ›

The cost to build out and equip the interior of Amazon's planned pre-first-mile logistics facility is expected to be more than $30 million. "We're told the interior build-out could take as long as 12 months," Norden said.

How many Amazon hubs are in Arizona? ›

In total, Amazon has 17 fulfillment and sortation centers in Arizona and 13 delivery stations. The company employs more than 33,000 full- and part-time employees in the state.

What is the oldest Amazon warehouse? ›

Amazon's first warehouse, the Seattle Distribution Center (SDC), was located on Dawson Street in Seattle. Here, Amazon employees picked and packed orders by walking through rows of shelves with flatbed carts.

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