Amazon Expands While Others Pull Back

Have you seen the recent economic news reported not just at www.tedmag.com, but also across the country?  I wouldn’t go so far as to call it “bad” or “concerning,” and definitely not “alarming.”

But it is something.

This week Anixter reports its sales are up, but profits are down, mostly due to the dropping copper price.
Anixter Sales Rise 4% in Third Quarter

WESCO International sales were down 7.4% in the third quarter, and the company is looking at downsizing its management staff in the near future.
Wesco Reports Drop in Third Quarter Income

And just yesterday, the U.S. Commerce Department reported that the economy only grew by 1.5% this summer between the months of July and September.  That compares to a 3.9% growth in the second quarter of 2015 and it is a significant drop from the third quarter of 2014, when the economy grew 4.3%.  Again, not “concerning.”  Just something.

Throughout all of this, one company is expanding.


According to a report this week, Amazon has opened 21 of what it calls “Logistics Facilities” this year.  The report goes on to say Amazon now has 104 of these facilities in North America alone.  Amazon’s expansion seems to be focused in the Northeast (Connecticut, New Jersey and Massachusetts) and the Midwest (Minneapolis and Chicago).

These “Logistics Facilities” serve a number of purposes, including a large fulfillment center and warehouse, a center for sorting items for shipping and a separate building for items that can be delivered in one hour.

Along with the expansion of the fulfillment centers, it looks like Amazon is beginning to explore its own delivery system. It is partnering with the U.S. Postal Service, Fed Ex, UPS and DHL right now. But some of it’s recent job listings includes titles like “Network Manager – Amazon Logistics Freight” and “Senior Program Manager – Last Mile Transportation”.  Experts believe Amazon is looking into its own delivery methods as a way to increase its profit margin and potentially provide more value to its customers.


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