CLARKSVILLE, TN (CLARKSVILLE NOW) – It’s been over a year since Amazon announced plans to build a state-of-the-art fulfillment center in Clarksville. Plans were in place to have the 500-employee facility up and running by July 2022, so what’s going on?
Amazon has delayed or canceled plans for at least 16 fulfillment centers across the nation, one of those being in Clarksville, according to Freight Waves, an industry publication. Construction of the new building, located in Corporate Business Park along Guthrie Highway, was completed earlier this month. The Nashville Business Journal reports the company is holding off on getting things running for at least eight to 10 months.
Amazon says the reason for the delay is supply chain issues. Officials told the Clarksville-Montgomery County Economic Development Council that they don’t want to invest in the manpower until they have all of their materials in the distribution center.
Amazon has had its fair share of financial setbacks. In the first quarter of 2022, the company announced a $3.8 billion loss. This was the first quarterly loss for the company since 2015. While supply chain issues from the pandemic played a role, Amazon also greatly expanded their real estate at a time when the prices of both property and construction materials reached record highs, according to the NBJ report.
Amazon told Clarksville Now there are still plans to open and operate the Clarksville facility, but no official opening date has been set.
“While we are delaying the launch of our new facility in Clarksville, it is still a part of our future plans. Will keep you posted as those firm up down the road,” said Divina Mims, Amazon spokesperson for Tennessee and Mississippi.
The building will house furniture, kayaks, appliances and other larger items that will be picked, packed and shipped.
The $100 million investment is expected to bring Clarksville around 500 new jobs. Starting pay at the facility was said to be more than $15 an hour, plus comprehensive benefits including health, dental and vision insurance; 401(k); and paid parental leave, according to previous reports.