June 13, 2022

Amazon will open its new Sioux Falls fulfillment center later than planned — but the e-commerce giant isn’t saying how much later.

The nearly 3-million-square-foot facility at Foundation Park in northwest Sioux Falls was about 95 percent done with construction in February when community and business leaders toured it.

At that time, it was waiting on equipment, including conveyor systems, that was expected to be installed in the next 90 days.

It’s unclear if that has happened, as Amazon isn’t able to provide context about the delay, said regional spokesman Scott Seroka.

“We’re still excited to launch this new facility in Sioux Falls, though we’ve had to adjust our timing,” he said in a statement.

“We know the local community is excited about the opportunities we’ll be bringing to the area, and we look forward to sharing new timing along with information about the great jobs, pay and comprehensive benefits we’ll be offering just as soon as we can.”

The five-story building is expected to support about 1,000 full-time jobs. No positions have been listed yet.

“I still feel confident they’re on board,” said Bob Mundt, CEO of the Sioux Falls Development Foundation, which is developing Foundation Park. “They’re continuing to communicate very well with us and being honest and open about what they’re doing.”

Earlier this year, Amazon expected to open sometime this year. The plan was to post management job openings 120 days ahead of opening and the rest of the positions 90 days ahead of time.

Elsewhere around the country, other Amazon fulfillment centers have been reporting delays. One in Davenport, Iowa, originally scheduled to open this fall now is delayed until 2024. It’s similar in size to Sioux Falls and also is slated for 1,000 employees.

Other delays have been posted in Texas and Tennessee.

“According to reports, Amazon is telling locations with new, unopened warehouses that it won’t open a new distribution facility unless it has enough product moving through the operation to use it at capacity,” according to this report last week from GlobeSt.com. “Amazon is citing lingering supply chain issues as well as slower-than-expected e-commerce growth as factors exacerbating its need to cull extra logistics space.”

While supply chain issues have challenged construction of Amazon warehouses, Bloomberg recently also reported the company has excess warehouse space in some markets and is looking to sublet up to 10 million square feet of it.

Amazon is operating a delivery station in Sioux Falls, with growing volume. It operates 24 hours a day, seven days a week at 800 E. 60th St. N., employing more than 250 part-time employees plus additional delivery drivers who work for two contracted services.

Look inside the Sioux Falls Amazon location already operating – and ramping up to do more