Supply Chain Council of European Union | Scceu.org
Warehousing

Amazon overbuilt warehouses and faces labor woes. But at new site in Clay, it’s prime time

Amazon Clay packaging

Workers package products at Amazon’s new distribution center in Clay, New York, on Thursday, June 23, 2022. (Rick Moriarty | [email protected])

Clay, N.Y. — Amazon’s opening of a huge distribution center near Syracuse comes as the company is facing two looming challenges that could impact its operations for years to come.

The first and most immediate problem is that the company built too many warehouses during the coronavirus pandemic, when consumer online purchasing soared. E-commerce sales slowed earlier this year as consumers ventured back to brick-and-mortar stores. Amazon said it suddenly found itself with more warehouse space than it needs.

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