Amazon challenge: Finding workers to fill hundreds of jobs

When Amazon casts a net for workers to receive and distribute consumer goods at its new 1-million-square-foot warehouse in New Stanton, it will be doing so in a tight labor market.

“That is one of the big challenges,” because of the loss of workers in Southwestern Pennsylvania, said James Futrell, vice president for market research with the Allegheny Conference on Community Development, a Pittsburgh-based regional leadership organization focused on economic development.

The jobless rate in Allegheny and Westmoreland counties in July had fallen to around 3%. The Pittsburgh region’s labor force has lost about 46,000 workers in the past four years, and labor market observers see little hope of recovery.

Even though Amazon has not said when the warehouse overlooking the Pennsylvania Turnpike will open, the PA CareerLink office at Westmore­land County Community College “already had a few people coming in and asking about working for the retailer,” said Janice Albright, office administrator.

An official with warehouse developer SunCap Property Group of Charlotte, N.C., said last year there will be about 600 jobs at the site, but Amazon has not confirmed that figure.

”They’ve got good jobs for people with (employee) benefits,” Albright said. “There’s a little bit of everything — logistics, clerical, purchasing — in addition to warehousing.”

PA CareerLink has offered its services, but Amazon has said it is not ready to seek employees for the warehouse, Albright said. Its sister offices in Uniontown and Washington County can also join effort to find workers for Amazon, which has turned to PA CareerLink to fill slots at other Amazon facilities in the state, Albright said.

Amazon has said it has not had difficulty finding workers in Pennsylvania, where it has about 5,000 employees, including those at a fulfillment center in Findlay Township and a new delivery station in North Versailles.

With its location near the intersection of the Pennsylvania Turnpike, Interstate 70 and Route 119, the warehouse at New Stanton is easily accessible to parts of Allegheny, Fayette and Washington counties, in addition to Westmoreland.

“It is the regional warehouse hub with experienced workers,” Futrell said.

Economic impact

Futrell calculates Amazon’s impact would be $30 million in annual income from the transportation and warehousing jobs, were the company to hire 600 employees. He said there could be a spinoff of another 300 jobs.

Amazon’s presence could help attract professionals seeking job opportunities in a dynamic and growing industry, as well as creating a significant number of jobs across various skill levels, according to Daniel DeBone, president of the Westmoreland County Chamber of Commerce.

The additional income generated by these jobs can circulate within the local economy, stimulating growth and revitalizing businesses, he added.

“This influx of talent can reverse the trend of population decline, as individuals from outside the area move in to work for Amazon or related businesses,” DeBone said. “This migration can lead to the growth of local communities and a more diverse population within a region that has seen population decline.”

DeBone’s perspective that it could lead to a workers’ migration is not shared by Frank Gamrat, an economist and executive director of the Allegheny Institute for Public Policy, a Castle Shannon-based conservative think tank. He doubts it will attract workers from outside of the area “because you can do that (warehouse work) in any city.”

The retailing powerhouse likely will diversify the local economy beyond the area’s traditional industries, DeBone said, thus reducing the region’s reliance on a single sector. Amazon’s business encompasses e-commerce, technology and logistics, so it can bring a variety of economic activities to the area, he added.

That can, in turn, “make the region more resilient to economic downturns and shifts in market demand,” he said.

But with the opportunity for growth and economic development comes challenges that should be carefully monitored, DeBone said. That may include concerns about a strain on the infrastructure, housing and potential environmental impacts.

“Balancing the positive effects with these challenges is key to maximizing the benefits of such a move for both Amazon and our local community,” he said.

Chasing workers

Amazon likely could acquire some workers from other warehouse operations in the New Stanton area, according to Gamrat.

“Will they be poaching workers from other warehouses, with better wages, benefits?” Gamrat said.

There are warehouses near by — most notably United Parcel Service Inc. (UPS) in New Stanton; the FedEx Freight warehouse at the Westmoreland Distribution Park in East Huntingdon; and United Natural Foods Inc., formerly operated by Supervalu, that straddles the New Stanton and Hempfield borders.

Although Amazon is opening operations next to its New Stanton facility, UPS said it has remained competitive during a challenging labor market, “largely due to our industry-leading pay and benefits, tuition assistance and career opportunities.”

UPS’s New Stanton facility has about 1,500 people, from part-time package handlers to full-time management and staff, a spokesperson said. It recruits employees in conjunction with PA CareerLink, local colleges and universities, as well as various nonprofit organizations.

As for tapping a pool of former workers who have left the office or other jobs since the covid-19 pandemic, “I don’t think they will come back, but they might, ” Gamrat said.

Albright does not believe the presence of Amazon will siphon workers from other kinds of small businesses that are looking to fill vacancies.

“Will this affect current workforce if wages or benefits are just as competitive throughout our region, or will the name ‘Amazon’ attract or draw more people, is certainly a million-dollar question,” DeBone said.

Modern warehouse

For those who get jobs at the Amazon site, it will definitely not be your father’s warehouse.

“The days of “pick (up) and pack in the warehouse,” are gone, said Abe Eshkenazi , chief executive of the Association for Supply Chain Management, a nonprofit trade association leading supply chain organizational transformation.

If the New Stanton facility is used as a sortable fulfillment center, the company’s website says they typically cover about 800,000 square feet. They can have more than 1,500 full-time workers who pick, pack and ship customer orders such as books, toys and housewares. Employees often work alongside robots.

Non-sortable fulfillment centers range from 600,000 square feet to 1 million square feet. They can have more than 1,000 workers who pick, pack and ship bulky or larger-sized customer items such as patio furniture, outdoor equipment or rugs, the company said.

Consumers are expecting a one-to-two-day delivery of goods, said Eshkenzai, which has resulted in more warehouse automation, Eshkenzai said.

“There is the need for workers. … The need is for knowledgeable workers,” who would “work with robotics and work with technology and embrace it,” Eshkenzai said.

It’s one of the reasons that his association offers candidates the opportunity to earn supply chain warehouse certificates through an educational program in warehousing and distribution.

“It’s a great way to gain the fundamental knowledge” of warehouse operations, Eshkenzai said.

Amazon often provides training programs and opportunities for skill development to its employees, DeBone noted.

“This can have a positive impact on the local workforce by upgrading their skill sets and making them more competitive in the job market,” he added.