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Amazon to increase spending with US-based suppliers by 20% in 2021

·Former Correspondent
·2 min read
In this article:
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Amazon (AMZN) plans to increase its spend with U.S. suppliers by 20 percent this year as the Delta variant of the COVID-19 virus threatens to create more uncertainty for businesses.

The e-commerce behemoth said on Thursday that it’s on track to buy more than $120 billion in supplies and services from more than 200,000 U.S. businesses, ranging from electric vehicle manufacturers to cardboard box producers to construction and engineering firms to office supplies and equipment.

Sydney, Australia - 2020-03-08 Amazon prime boxdelivered to a front door of residential building.
Sydney, Australia - 2020-03-08 Amazon prime boxdelivered to a front door of residential building.

According to Amazon, most of these suppliers are small and medium-sized enterprises. The 20% increase in spending does not include the companies that sell on its website, but rather companies that provide supplies and services that allow Amazon to operate.

“Millions of families rely on us to deliver what they need every day. Delivering for our customers takes teamwork—we can’t do it alone. We rely on strong partnerships with hundreds of thousands of American businesses—from our forklift manufacturer in Kentucky to the construction company in Texas that builds our delivery stations. Today is about renewing our commitment to these businesses and betting big on them,” Dave Clark, CEO of Worldwide Consumer at Amazon, said in a statement.

Citing a report from Keystone Economics, Amazon noted that the 2021 spending is estimated to support 840,000 American jobs across construction, transportation, manufacturing, and hospitality.

Last month, Amazon reported $113.08 billion in revenue for the second quarter. The tech juggernaut expects to bring in between $106 billion to $112 billion in the third quarter, below Wall Street’s expectations of $118.7 billion.

Shares of Amazon were last trading near $3,291. The stock is up just north of 1% year-to-date and off its all-time closing high of $3,731.41.

Julia La Roche is a Correspondent at Yahoo Finance. Follow her on Twitter.

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