JOHN E. SETTLE JR.
The quiet hype and guarded optimism on the construction of an Amazon fulfillment center in north Shreveport is a good start for a hoped-for rebound in the local economy this year.
Just the economic impact of the reported new construction will bring jobs and dollars into the local economy, including tax revenues.
And then there are the jobs that will need to be filled once the center is open.
The proposed location near the Caddo Correction Center is near the low-employment MLK area.
But ... there is always a “but,” or sometimes two, when dreaming of economic pots of gold.
Local employers and employment agencies are currently citing a growing need for workers.
Reportedly, unemployment payments, tax returns and three rounds of stimulus payments have mollified many who would normally seek employment.
And there is talk of extension of unemployment benefits and another stimulus payment.
A recent article, “What will Amazon deliver?” was published in the Greater Baton Rouge Business Report.
The well-written article provides many noteworthy insights.
Although $15 per hour is a “good” starting wage, many fulfillment centers have encountered high burnout rates while offering few worker protections.
A big positive for Amazon hires is the company’s health insurance, which kicks in on day one.
Additionally, the convenience of shopping by home with a simple computer click has placed more pressure on small retailers, much like the advent of Walmarts in small and rural areas.
Presumably, any Shreveport facility will be much like the planned Baton Rouge fulfillment center. It will operate 24/7 and will be a small, sortable center, which means it will handle products less than 18 inches in diameter, the size of most Amazon orders. In Baton Rouge (and most likely Shreve port) the products will arrive by truck in vendor cartons and will be inspected, sorted and automatically placed into storage pods.
When a customer order is placed, an employee will pick up the product out of its pod, place it into a toter and then send it to a packing station. There, another employee removes the item, scans it and puts it into a shipping carton that ultimately will be loaded onto a truck.
With a local facility, the item could go straight to a delivery truck for northwest Louisiana. Alternately, the item could be sent to another last-mile facility for delivery.
Amazon operates more than 75 small, sortable fulfillment centers in the U.S. and has plans to develop more than 40 more this year.
It’s possible that Amazon Air may utilize the Shreveport Regional Airport for delivery. Currently, it operates out of New Orleans. Amazon primarily relies on ground transportation.
What is yet to be known is if infrastructure improvement will be requested along with tax abatements.
THIS ARTICLE WAS PUBLISHED IN THE April 30 ISSUE OF FOCUS SB - THE INQUISITOR.