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Amazon's (AMZN) New Louisiana Facility to Add 1,000 Jobs

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Amazon (AMZN - Free Report) is continuously making efforts to bolster its e-commerce capabilities on the back of its strengthening fulfilment network.

The recently announced plan, regarding a new robotics fulfilment center in Louisiana, is a testament to the above-mentioned fact.

Notably, the facility, which will be located in Baton Rouge, will be the second of its kind by the company in Louisiana.

The new fulfilment center, spanning 820,000 square feet, will create more than 1,000 full-time jobs. Further, it will offer wages starting at $15 an hour, including other comprehensive benefits like full medical, vision and dental insurance.

Additionally, maternal and parental paid leave of up to 20 weeks will be provided to employees.

The company intends to leverage the new facility to pick, pack and ship small-sized customer items such as electronics, books, toys and other household items.

The latest move is in sync with the company’s continued efforts toward leveraging robotics to speed up its warehouse operations. This, in turn, will strengthen Amazon’s delivery capacity.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

Growing Investments in Louisiana

The world’s largest online retailer has been strengthening presence in Louisiana since 2010.

Amazon’s investment in the state has exceeded $250 million since then. It includes investment in infrastructure and compensation to employees.

Furthermore, we note that it has created more than 750 indirect jobs to date alongwith over 2,000 full and part-time direct jobs in this state.

Apart from the latest move, the company recently revealed its plans to open its first robotics fulfilment center in the underlined state, which will be located in Shreveport.

The facility will also create more than 1,000 full-time jobs and provide employees with various health insurance benefits.

Further, Amazon is gearing up to open a fulfilment center in Carencro this year, on the back of which it intends to create more than 500 full-time jobs.

Wrapping Up

In our view, Amazon must maintain its U.S. market share, while expanding globally to retain its dominant position in the e-commerce market. To this end, the company needs to continue investing more in fulfilment centers as the giant warehouses help online retailers store and ship products, and handle returns quickly.

Moreover, strengthening the delivery system remains crucial for the online retail giant in thefast-paced world.

These are important for providing the standard of service that customers have started expecting from Amazon.

Additionally, the company’s deepening focus toward aiding automation at its fulfilment centers on the back of the growing deployment of warehouse robots remains a major positive.

We believe all these will continue to aid the company’s e-commerce dominance. Moreover, a strong fulfillment network will continue to provide it a competitive edgeagainst other e-commerce players such as eBay (EBAY - Free Report) and MercadoLibre (MELI - Free Report) as well as traditional retailers like Walmart (WMT - Free Report) , Target and Kroger.

Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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