Amazon is continuing to up its industrial market by leasing two new buildings but also while cutting out over 1,000 delivery jobs. The company continues to grow but there are competitors that want to dominate the industry.
Jeff Bezos recently leased two new last-mile industrial buildings coming out to a total of 600k SF in the west suburban Cicero. It is considered a sign the internet behemoth is doing more than any other company to keep the local industrial sector afloat during this pandemic.
These jobs are well needed all over the world. What Amazon is doing many more companies need to take the time and do. This would help many families during this pandemic noting that many are without jobs right now and many do not have the money to pay their bills.
“We saw the potential in this location six years ago, when we first did an analysis of it for an earlier owner,” Moran said. “It offers quick access to a Chicago customer base and a strong local labor pool, both of which are attractive to this tenant and other e-commerce players wanting proximity to major population centers.”
Many Chicago-area industrial companies have recently got rid of there leases or downsized. But e-commerce companies continue to expand to serve homebound consumers. This helped to fuel about fourteen million SF of new leasing activity in Q2, around equal to the 14.6M SF in Q1. That meant instead of recording negative absorption, the region only saw 354K SF of positive absorption for the last quarter.
“Amazon.com was the difference-maker during the second quarter of 2020,” according to Colliers. “The e-commerce giant committed to an astounding 11M SF in 10 buildings. Amazon.com inked 7.2M SF in new leases during the period, accounting for 51% of the total new leasing volume recorded in the quarter.”
Colliers International expects the local supermarket around Cicero to fare particularly well. It was one of six submarkets to see its vacancy for the drop rate. The lowest of any in the Chicago metro area, in the long-term outlook.
Amazon going to help Chicago to get back on their feet, they will help for the unemployment rates to go back down. There are more jobs needed where the people are needed and robot or any type of machine can not be put into place over the human.
1,200 NEW DELIVERY JOBS CUT
More than one thousand delivery jobs drivers have been laid off in the past months after the company had cut many contracts with a lot of there small delivery companies all across the country.
Amazon informed seven firms that apart from there Delivery Service Partner program that they were serving their contract. The companies made an announcement that they were going to lay off these workers and closing facilities in Worker Adjustment and Retraining Notification filings submitted this month and the recent month to state officials.
Amazon laying these workers off is not doing any justice to the fact that we are in a huge pandemic and there are already barley jobs out for people. This will do nothing but raise the unemployment rates back out of the roof. Amazon leasing the two new buildings were basically worthless because they already got rid of many workers.
“This comes as a complete shock to our company as a whole and I can assure you the decision was not based on performance,” the company said in a notice to employees, which was obtained by CNBC. “We will be continuing to run routes as normal to provide service to Amazon through July 18, 2020.”
It is unclear how many IQDI employes had lost their jobs as a result of Amazon ending the contract. Representatives from IQDI did not respond to more than one request for comment.
STOCKS BEATING AMAZON
You can buy large furniture and things from a small home through Amazon, while Wayfair is growing way faster than Amazon through aggressive marketing and the high-tech tricks as they allow free shipping.
Another is Chewy they are allowing an auto-ship feature similar to Amazons subscribe and save. This is where shoppers receive discounts by having shipments at set intervals.
Written By Jordan Fenderson
Edited by Cathy Milne-Ware
Sources:
Bis Now: Amazon Keeps Up Leasing Spree, Sustaining Chicago’s Industrial Market
CNBC: Amazon cuts more than 1,200 delivery contract jobs, even as that part of its business booms
Fool: 3 Hot Sticks Beating Amazon at Its Own Game
Image Courtesy to Xabier Cid’s Flickr Page – Creative Commons Licenses
