This picture taken on on October 22 shows a new Amazon warehouse, part of mobile robotic fulfilment systems also known as 'Amazon robotics', in. This illustration picture taken in Bretigny-sur-Orge on May 19, 2020 shows a sign with the company's logo at Amazon's centre entrance as Amazon. Amazon distribution center, shelby twp, michigan - amazon warehouse stock pictures, royalty-free photos & images Amazon fulfilment center in Sosnowiec, Poland on 13 May, 2019. The fifth Amazon fulfilment center in Poland is built in the Upper Silesia region. 3 years ago A member of the military at Amazon community. 3 years ago Sabrina, military spouse and customer service team lead for Amazon’s Virtual Customer Service. 3 years ago Doppler's community stairs offers a tiered seating experience to work and people watch. 3 years ago An associate solves the puzzle of making the most efficient use of a truck's cargo space. 3 years ago Coffee break in.
With a massive increase in profits over the last year, Amazon.com is expanding its physical presence in Iowa.
The online retailer signed a lease agreement on March 11 to move into an Ankeny warehouse, according to Polk County property records. Meanwhile, the Davenport City Council is considering a development agreement for a much larger facility near the Iowa-Illinois line that, by all appearances, will be a much larger Amazon fulfillment center.
Amazon Warehouse Process© Zach Boyden-Holmes/The Register The Amazon fulfillment center in Bondurant, Iowa, Monday, April 26, 2021.
The new projects would give the company at least six warehouses in Iowa — all opened in the last 13 months. The company's largest presence is in and around the state capital, with four warehouses in the Des Moines metro.
A company spokesperson and officials from Ankeny and Davenport declined to comment on the projects. Claire Brehmer, a spokesperson for Hubbell Realty, which is leasing the Ankeny warehouse to Amazon, also declined to comment.
The Ankeny building is located in the Crosswinds Business Park, northeast of the north I-35/80 interchange. Finished in 2020, the warehouse has about 137,000 square feet of floor space — roughly the same size as the warehouse Amazon opened in Grimes last year.
This implies that, like the Grimes warehouse, the new Ankeny site will be a delivery station, the smallest of Amazon's several kinds of warehouses.
Amazon employees first sort packages on the outskirts of major cities, inside larger buildings known as fulfillment centers and sortation centers (Iowa's existing ones are in Bondurant). Drivers take those packages to the smaller delivery stations, located closer to cities and suburbs.
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Another set of workers sorts the packages based on the ZIP codes of the delivery addresses. Drivers then deliver a set of packages with destinations near each other.
Amazon opened its fulfillment center in Bondurant in December. The company also is opening a sortation center in Bondurant.
Davenport is next on Amazon's list
In the eastern half of the state, Amazon opened a delivery station in Iowa City last spring. The now appears to be planning a fulfillment center in Davenport.
According to a development agreement with the City Council, Seefried Industrial Properties is building a warehouse immediately north of I-80 and west of the Davenport Municipal Airport for an unnamed client. The development will cost $250 million, the same estimate developers gave the Bondurant City Council in 2019 for a then-anonymous company's proposal that turned out be the fulfillment center.
The development agreement also states that the Davenport warehouse will create 1,000 permanent jobs at a minimum wage of $15 an hour, just as Bondurant's fulfillment center did when it opened.
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Further, the agreement describes the four principles of the company moving into the warehouse: 'customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking.' This language is lifted directly from Amazon's website.
And the agreement states that the company had '1,298,000 full-time and part-time employees' at the end of last year. This is the figure Amazon reported in its 2020 annual financial report.
Amazon's $22.9 billion in income last year was up 57% from 2019
Amazon's rapid expansion comes as the company reported $22.9 billion in operating income last year. That's up 57% over 2019, reflecting how consumers flocked to online retailers as they stayed home during the pandemic.
The company hired about 500,000 employees around the world last year, a 63% increase in headcount. The amount of space Amazon leased increased by 43% last year, to 454 million square feet.
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Amazon Warehouse Picking
The development agreement with Davenport would provide the warehouse's owner with a 10-year tax abatement on the improved value of the land. The discount decreases over time, with an 80% abatement in the first year after the development is finished and a 20% abatement in the ninth and 10th years.
Amazon Picture Requirements
The city also would spend $3.9 million on construction near the warehouse by extending some roads, widening others and adding turn lanes. The city has applied for a $3.1 million grant from the Iowa Department of Transportation to cover most of the expenses.
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Inside An Amazon Warehouse
Tyler Jett covers jobs and the economy for the Des Moines Register. Reach him at [email protected], 515-284-8215, or on Twitter at @LetsJett.
Picture Of Warehouse
This article originally appeared on Des Moines Register: Amazon increasing Iowa presence with Ankeny warehouse, appears to be planning another in Davenport