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Amazon to Double Number of Robotics Manufacturing Facilities

Amazon will invest over $100 million in a new advanced manufacturing site in Indiana, the company said last week (The Wall Street Journal, subscription).

What’s going on: The planned 585,000-square-foot robotics hub—which, along with an Austin, Texas, facility announced this summer, “will double the number of Amazon’s robot-making plants to four”—will manufacture products for Amazon’s fulfillment and robotics network. 

Why it’s important: The new plant is expected to “create 300 skilled manufacturing and engineering jobs, commanding average salaries of almost $100,000 a year, well above the state’s median household income.”

  • And Amazon says “its investments in robots to sort, lift and move packages have created high-paying, skilled jobs and reduced the rate of recordable workplace injuries by more than 43%.”

Investing in Indiana: Since 2008, when it opened its first fulfillment center in Indiana, Amazon has invested more than $40 billion and created more than 27,000 jobs in the state (Amazon.com).

  • In the past seven years, over 4,200 Amazon employees in Indiana have taken part in the company’s free Career Choice program, which “pre-pays tuition for employees pursuing in-demand certifications and degrees.”

About Amazon’s robotics: The company’s two current robotics manufacturing sites are in Massachusetts, the home state of Kiva Systems, which Amazon acquired in 2012.

  • The two factories “serve as research, development and manufacturing centers for several types of robots including Sparrow, a robotic arm that consolidates inventory before it gets packaged, and Proteus, a disc-shaped autonomous robot that transports carts of packages that can weigh around 900 pounds.” 

Our view: The announcement is excellent news for manufacturing, the NAM said in an X post.

  • “The NAM congratulates [Amazon] on its more than $100 million investment in a new advanced manufacturing facility in Greenwood, Indiana … [which will expand] Amazon’s U.S. manufacturing footprint and [support] the future of robotics manufacturing.”