Amazon is set to pump more money into the procurement of supplies and services from businesses in the United States, Fox Business reported Friday.
The biggest e-commerce company in the U.S. is allocating around $120 billion this year from more than 200,000 companies operating across the country.
This spending marks a 20% increase year on year, which is unsurprising based on Amazon's increase in demand throughout the global health crisis.
The supply acquisition will include various types of equipment and hardware for Amazon logistics sites, supplies for corporate offices, construction, engineering, design, and engineering projects, to name a few.
The spending will not cover things like employee paychecks or even bonuses. Instead, it will go mainly on supplies from external and third-party entities.
The proposed 2021 budget is an increment from the previous year and doesn't include any of the products the e-commerce giant buys and sells to customers in its stores.
Amazon is among the most prominent investors in the U.S. and has been near the leaderboard of the Progressive Poly Institute's (PPI) most important investors list for the last few years, Patrick Moorhead wrote on Forbes.
Amazon disclosed the news a day after it unveiled a $1.25 billion Kentucky facility, a new state-of-the-art robotics fulfillment center, and five delivery centers in Florida. These investments are expected to provide around 2,000 employment opportunities each in both states.
In an interview with FOX Business' Susan Li, Holly Sullivan, Amazon's vice president for global economic development, said as the company starts venturing into what it calls its "peak season," it is opening up new fulfillment centers, and that Amazon "plans ahead multiple years in advance."
An independent survey from Keystone Economics projects that Amazon's anticipated spending on suppliers for the current year will boost local economies and support 840,000 jobs in multiple industries in the U.S, Dan Berthiaume of Chain Store Age (CSA) said.
Amazon is one of America's biggest private employment providers, with a total of 950,000 employees in the U.S. The company has added more than 400,000 jobs since 2020, with more than 30,000 positions to fill currently.
