An Amazon fulfillment center in South Dakota which was expected to launch this year has been delayed.
The five-storey, 3 million-square-foot facility at Foundation Park in northwest Sioux Falls was nearly 95 percent completed when community and business officials visited it in February
It was waiting for equipment, including conveyor systems, to be installed in the next 90 days to create 1,000 full-time jobs.
Regional spokesman Scott Seroka said: “We’re still excited to launch this new facility in Sioux Falls, though we’ve had to adjust our timing.”
“We know the local community is excited about the opportunities we’ll be bringing to the area, and we look forward to sharing new timing along with information about the great jobs, pay and comprehensive benefits we’ll be offering just as soon as we can.”
There are no open vacancies, and Amazon is unable to give an explanation for the delay.
Bob Mundt, CEO of the Sioux Falls Development Foundation said: “I still feel confident they’re on board,” said, which is developing Foundation Park.
“They’re continuing to communicate very well with us and being honest and open about what they’re doing.”
Amazon stated earlier the center will open this year.
The idea was to list managerial job opportunities 120 days in advance, and the remaining positions 90 days in advance.
Other Amazon fulfillment locations around the country have reported delays.
One in Davenport, Iowa, which was supposed to open this autumn, has been postponed until 2024. It will be equivalent in size to Sioux Falls and will employ 1,000 people. Delays have also been reported in Texas and Tennessee.
It was reported Amazon has informed sites with new, unopened warehouses that it would not open a new distribution facility unless there are enough goods flowing through the operation to use it at full capacity.
Amazon cites persisting supply chain challenges and slower-than-expected e-commerce growth as reasons for increasing the need for additional logistical space.
While supply chain concerns have hampered Amazon warehouse development, the business has spare warehouse space in some countries and plans to rent up to 10 million square feet of it.
Source: SiouxFalls Business