Amazon.com Inc. (Nasdaq: AMZN) recently offered some hard numbers about its impact on the San Diego region and the San Diego economy.
Since 2010, the company said, it has created more than 4,000 jobs in the San Diego area and has invested more than $2.3 billion. The direct spending includes infrastructure and compensation.
The company released the figures in mid-August as part of a broader 2021 economic impact report.
Such spending has ripple effects. Amazon estimated it contributed an additional $2.4 billion to the San Diego area economy and supported 12,200 indirect jobs — jobs in addition to those at Amazon. These might be jobs in construction or logistics or professional services, the corporation said.
Getting Started at Otay Mesa
The report comes as Amazon is standing up a new, 3.3 million square foot fulfillment center in Otay Mesa, near the U.S.-Mexico border. The center is expected to employ more than 1,500 people.
“Amazon’s investment into our region can provide new beginnings for many San Diegans, and we look forward to their growing presence here,” said Christina Bibler, economic development director at San Diego City Hall.
In a statement in mid-August, Amazon said its Otay Mesa employees will work alongside technologies such as Amazon Robotics to pick, pack and ship smaller-sized items to customers. The business added that the jobs offer a starting wage of $15 an hour and that full-time employees will receive comprehensive benefits, including medical, vision and dental insurance. The business also said it offers a 401(k) retirement savings plan with a 50 percent company match.
Amazon also has a tech hub, occupied by computer science and software talent, on Campus Point Drive in the University Towne Center neighborhood. That facility is relatively new, coming together between 2016 and 2018, according to an account of its founding by engineer Nate Wiger, who is credited with putting it together.
In an account posted on the Amazon website, Wiger said he felt Amazon needed to have an engineering presence in San Diego given its strong computer science community and the presence of UC San Diego, not to mention San Diego’s lower cost of living compared to other California cities.
Amazon’s local presence also includes three Whole Foods Markets in San Diego County, in Hillcrest, UTC and inland from Del Mar.
The Seattle-based corporation said it has invested more than $81 billion in California between 2010 and 2020, counting infrastructure and compensation paid to employees. Statewide it has created more than 153,000 jobs, supporting more than 259,000 indirect jobs, based on the Input-Output methodology developed by the U.S. Bureau of Economic Analysis.
Sales of $386 Billion
In 2020, Amazon.com Inc. reported total net income of $21.3 billion on net sales of $386.1 billion. In the prior year, it reported net income of $11.6 billion on total net sales of $280.5 billion.
CEO: Andrew Jassy
BUSINESS: Diversified corporation with emphasis in retail and information technology
REVENUE: $386.1 billion in 2020; $280.5 billion in 2019
NET INCOME: $21.3 billion in 2020; $11.6 billion in 2019
EMPLOYEES: Approximately 1.3 million full- and part-time employees companywide
NOTABLE: Amazon is opening a 3.3 million square foot fulfillment center in Otay Mesa. South San Diego offers the least expensive industrial real estate in the county, according to research from commercial real estate specialist CBRE.