Negotiations have been in the works
for the last 18 months, and the retail giant is now in the process of
selecting the site for the initial facility. If all goes as planned,
Amazon intends to open several additional facilities by 2017,
ultimately bringing about 1,000 jobs to the Chicago area. Amazon’s
total investment in the project will be around 75 million dollars,
providing a boost not only to the local job market, but also to the
local economy.
Amazon has
indicated that it plans to open new distribution centers in order to
increase the number of items available for same-day delivery. The
company also plans to experiment with “anticipatory” shipping, a
system in which packages are prepared for delivery before actually
being purchased by a customer, and also intends to continue its tests
on the viability of drone delivery for some items. The company also
wants to continue to tests its own network of delivery carriers so
that it can function independently of major shipping companies like
FedEx and UPS.
Spokesmen for the state of Illinois
have indicated that the state has pursued the project and proposed
relationship with Amazon because Chicago is not only located in the
center of the United States, but also is ideally linked to the
transportation routes that the retailer will need to move its
merchandise. Historically, Chicago has proven to be the ideal
location for large and successful retail chains, from Montgomery
Ward, to Sears, to high-end retailers like Marshall Fields. The
Illinois economy has long thrived on the transportation and
distribution of goods, and Amazon can certainly capitalize on these
qualities with their new distribution facilities.
The 1,000 new full-time employees of
the proposed distribution center can also expect positive outcomes
from the project. Amazon provides a comprehensive benefits package
for its full-time employees, including healthcare, 401(k) with 50%
contribution matching, excellent wages, stock bonuses, and unique
programs like their Career Choice program.
Since they will soon have a physical
location in the state of Illinois, Amazon will also soon be required
to charge Illinois residents state sales tax. At this time, no state
incentives have been offered to Amazon for choosing Illinois as the
location for the distribution center, although state spokesmen say
that they are willing to negotiate subsidy agreements once Amazon
makes its final plans.
