Amazon expects to spend $120 billion at U.S. suppliers in 2021
Amazon relies on American businesses to keep its operations running, from electric vehicle manufacturers to companies that make office supplies. After an especially trying year for many companies in the U.S., Amazon is on pace to support them to the tune of $120 billion.
Amazon is buying more than $120 billion worth of supplies, services, and equipment from businesses in the U.S. in 2021—and that doesn’t include any of the products Amazon buys and sells to customers in its stores. The purchases are from more than 200,000 companies across the country.
Small-town business helps make Amazon faster
Amazon’s 2021 purchases include equipment for logistics sites, supplies for corporate offices, and services for construction, design, and engineering projects. The projected spending this year by Amazon—which is already the largest creator of direct jobs in the U.S.—represents an increase of 20% year over year.
Matt Haugrud, president of Pallet Recovery Services, approached Amazon in 2013 to partner with the company. At the time, his business mainly supported the agriculture and construction industries in central California. Now his company’s work is more consistent because winter is Amazon’s busy season. PRS now services 11 fulfillment centers.
“Since we started working with Amazon in 2013, we’ve been able to grow our team from 60 employees to over 180,” Haugrud said. “We don’t see ourselves as just a supplier to Amazon, we see ourselves as a partner. And through our dedication, transparency, and willingness to go the extra mile, that partnership will only grow stronger.”
Dave Clark, CEO of Worldwide Consumer at Amazon, said the company and its customers rely on American businesses.
“Millions of families rely on us to deliver what they need every day,” Clark said. “Delivering for our customers takes teamwork—we can’t do it alone. We rely on strong partnerships with hundreds of thousands of American businesses—from our forklift manufacturer in Kentucky to the construction company in Texas that builds our delivery stations. Today is about doubling down on our commitment to these businesses and betting big on them.”
Igo Wordu has been working with Amazon since October 2019 through his logistics and delivery businesses, Clei Group. He has employed at least 226 people and delivered millions of packages to customers in and around Houston, Texas, with a fleet ranging from 39 to 60 vehicles.
“In my life’s experience, I have always admired those who positively impact other people. I believe that, in order to measure success, you must measure the impact one has on the community,” Wordu said. “Without a doubt, the Amazon DSP program has given me a solid platform to employ and mentor young people within my community, while putting smiles on millions of customers at the same time.”
And it isn’t just companies that work directly with Amazon that experience the benefits.
An independent analysis from Keystone Economics estimates that the 2021 spending by Amazon will support an additional 840,000 American jobs. Those jobs are in industries like construction, transportation, manufacturing, and hospitality. In other words, local communities are feeling a ripple effect.
In 2020 alone, in the middle of the COVID-19 pandemic, Amazon hired over 400,000 employees. The company now employs more than 950,000 people in the U.S., and more than 2 million businesses, content creators, developers, and delivery providers in the U.S. use Amazon products and services to start or grow their careers.
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