Making way for Amazon.com Inc. has been no easy feat for the town of Johnston since the e-commerce giant opened a 3.8 million-square-foot fulfillment center atop a wooded hill off Route 6 last November.
After all, the footprint of the massive building alone covers the size of nearly 14 football fields.
To handle the hundreds of delivery trucks moving nearly 850,000 packages a day, the lanes on Route 6 had to be widened. R.I. Public Transit Authority bus routes were overhauled to synchronize with warehouse shifts. And traffic lights had to be reprogrammed to keep up with the increased flow of vehicles in the area.
But the promises Amazon made to the town and the state were big, too: more than a thousand new jobs and hundreds of millions of dollars in local economic impact.
Now, as Johnston grapples with such growing pains, the question remains: Has Amazon’s presence lived up to promises of economic opportunity and community benefit, or is the town paying a higher price than anticipated for hosting one of the world’s biggest corporations?
While some businesses have seen benefits, others, such as Okee’s Old Fashioned Amusements, say they are still waiting.
Luann Rossi, co-owner of Okee’s, an entertainment rental company in Johnston, says her delivery drivers get stuck in the Amazon truck traffic – sometimes bumper to bumper.
And as a school bus driver, she sees firsthand how kids are spending at least 10 to 15 minutes longer on the bus now because of congestion near Trinity Christian Academy, across Route 6 from the sprawling warehouse.
“I hope the town is benefiting from having Amazon here, but I’m not really seeing it yet,” Rossi said.
Then there are concerns about the effects that a massive fulfillment center might have on small businesses in the region.
Some might be able to tap into Amazon’s logistics by using the e-commerce platform and warehousing goods there for quicker shipping times to new markets. Amazon spokesperson Michael Murphy says Rhode Island independent sellers on Amazon averaged approximately $160,000 in annual sales in 2024, selling more than 4 million items.
But with Amazon’s close presence, other local businesses may feel increased pricing and personnel cost pressures that squeeze profit margins, what’s commonly known as the “Amazon Effect,” the disruptive force of e-commerce’s most dominant company on various sectors.
One national study concluded in 2018 that when Amazon opens a new fulfillment center, the new warehousing jobs created are likely offset by job losses in other industries.
While it’s still early, Johnston Mayor Joseph M. Polisena Jr. has declared the arrival of Amazon a win, citing $145.6 million in projected property tax revenue over 20 years. The facility was projected to create 1,500 full-time jobs, according to Polisena – a mark that Amazon says it has already exceeded at this point. Seasonal hiring could add more positions, the company said.
The Amazon building is one issue on which Polisena and Gov. Daniel J. McKee – who have had their differences in recent years – can agree.
All told, Amazon has invested $400 million in the Johnston facility, dubbed “PVD2” by the company, according to McKee.
But securing the deal to bring Amazon to Johnston wasn’t easy, Polisena says. Multiple Rhode Island towns were vying for Amazon’s attention.
“We worked really hard getting it here,” Polisena said. “Some people thought it would never happen. But the reputation of the town, which is pro-business and is known to work closely with developers, was key.”
For Polisena, landing Amazon represents more than just a business win for a town where a large chunk of land is occupied by the Central Landfill; he says it’s a point of pride for many in the community and a testament to the town’s strategic location in the heart of the state.
“Other municipalities wanted it, but Johnston got it,” he said. “I’m very proud to have Amazon here. Any town in the country would want more jobs, more tax revenue for its residents.”
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MOVING MERCHANDISE: A system of conveyor belts and thousands of robots in the vast Amazon fulfillment center assist workers in receiving and shipping about 850,000 packages a day.
COURTESY AMAZON.COM INC.[/caption]
THE ARRIVAL
It’s clear that the five-story Amazon fulfillment center, looming above the tree line on a hill just west of Interstate 295 and visible from miles away, has had an impact.
Hardly a year into operations, Amazon is already the town’s second-largest employer behind Citizens Financial Group Inc., which has a 120-acre corporate campus in town.
The wages for the Amazon workers are also competitive for their category.
Amazon’s Johnston facility offers starting wages of $20.50 an hour – translating to over $42,000 a year – with some roles reaching $29.50 an hour, or $61,000 annually, far outpacing Rhode Island’s $15 minimum wage, which amounts to just $31,200 annually, according to recent R.I. Department of Labor and Training data.
“It added jobs. Good-paying jobs with benefits,” McKee said in an interview with Providence Business News. “It is a major accomplishment, bringing this state-of-the-art Amazon facility to Johnston.”
Amazon’s pay scale can have an effect beyond its fulfillment centers, too. It’s been shown to pressure nearby employers to raise wages, lifting standards across the local logistics industry, according to observers.
A national Princeton study conducted in 2021 found that in 2018, Amazon’s then-$15 minimum wage triggered a 2.3% average wage increase among nearby employers within the same commuting zone.
Douglas N. Hales, a professor of operations and supply chain management at the University of Rhode Island, has long studied the impact Amazon and other major companies have locally whenever they move into town.
“Amazon does create a positive effect wherever it goes,” Hales said. “We see salaries go up, tax revenues. Perhaps just as importantly, are people talking positively about working there? They do. Those are the things I look for, and based on that history, I think Johnston will benefit.”
Town records show that Amazon.com Service LLC, a subsidiary that handles specific portions of Amazon operations, paid $6.5 million for the wooded Johnston site in 2021, located along Route 6 and Interstate 295. The property had been assessed at $642,700 in 2019.
In addition the $400 million that Amazon says it has invested in the PVD2 facility, it has also financed $11 million worth of off-site infrastructure improvements, including the widening of Route 6.
Now the sprawling warehouse is surrounded by a 1,800-spot parking lot and features 22 receiving overhead doors and 41 shipping overhead doors. The building holds about 41 million products, ranging from basic household items to books and toys to electronics.
Inside, workers sporting fluorescent vests receive, pick and pack items with the assistance of about 6,000 “robots” – which look like shelves on wheels – each of which can lift up to 1,500 pounds.
Amazon calls the warehouse a “first-mile” fulfillment center, where products are stored, then packaged and shipped to other Amazon facilities, such as delivery stations, and then on to customers.
Hales says talk that Amazon fulfillment centers will be eventually completely automated and no longer need human workers is overblown. “I have not seen one example in the world where fully automated facilities do not need human workers,” he said. “They still need a lot of technicians on-site.”
But Hales has heard of the “Amazon burnout factor,” where warehouse workers are asked to work quickly for many hours. “Some employees will leave after a few years due to increasing demands,” he said.
GOOD DEAL?
The new jobs and wages did come with some strings attached.
Johnston officials approved a 20-year tax stabilization deal, with property taxes locked in at an average of $7.2 million annually.
While the town will collect about $145 million in property taxes over two decades, that figure is a significant savings for Amazon, which will avoid the taxation of its tangible assets, such as conveyor systems and robotics, shelving, forklifts, computers and other equipment.
The state also granted Amazon around $3 million in subsidies, tax breaks and grants for infrastructure and facility support.
Those incentives have drawn fire from critics such as state Rep. Enrique Sanchez, D-Providence, who called the deal a corporate handout from a small town and state to a company with a market capitalization of more than $2.3 billion.
“My criticism of the [Johnston Amazon] development has always been the tax breaks, tax cuts, how much our state will be giving them,” Sanchez said. “Will the town and Rhode Island really benefit? Or is it just for Amazon? That’s my main concern.”
Local and state leaders argued that it’s been well worth it from the start.
During construction, more than 2,200 jobs were created to build the facility. While a breakdown of how many of those jobs were filled by locals was unavailable, Polisena said that number included “a significant number of Rhode Islanders.”
And 90% of the construction workers on the project were union members being paid prevailing wages, according to McKee’s office. For a laborer in Providence County, where Johnston is located, that’s $61.35 per hour as of 2025.
Now that the fulfillment center is fully operational, Amazon says it is supporting nearly 1,000 small and midsize Rhode Island businesses that use the company’s e-commerce platform to reach markets regionally and globally.
R.I. Commerce Corp. spokesperson Matthew Touchette says Amazon has also agreed to contribute $550,000 annually for five years to the R.I. Small Business Assistance Program, which helps entrepreneurs and businesses that struggle to obtain credit.
“Amazon’s presence in Rhode Island is providing jobs and resources that contribute to the state’s economic growth,” Touchette said.
Still, some worry that the town rushed into a deal that sacrificed more than it gained.
Lauren Niedel, a Glocester resident who attended public hearings on the project from the start, called the incentives “a rotten deal,” saying Polisena “took whatever Amazon threw at him.”
“We’re talking about a trillion-dollar company here, and it seems to me Johnston has got peanuts,” Niedel said. “A $40,000 salary to start? I think they could pay more if they wanted.”
Meanwhile, the sharp increase in Amazon delivery traffic around Johnston hasn’t exactly translated into increased commerce for nearby small businesses just yet.
Despite hundreds of Amazon employees and trucks moving through the area daily, there’s little evidence of spillover spending along the town’s Atwood Avenue commercial corridor. Classic Express Café, for instance, reports that it hasn’t seen any noticeable boost in customer traffic since Amazon opened.
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IN-PERSON FOCUS: Jillian Finkle, deputy director of the nonprofit Grow Smart Rhode Island, says small businesses surrounding the Johnston facility that aren’t already independent sellers on the platform should not be looking at Amazon as a direct competitor. Instead, retailers should lean into the brick-and-mortar shopping experience.
PBN PHOTO/TRACY JENKINS[/caption]
Jillian Finkle, deputy director of the nonprofit Grow Smart Rhode Island, says small businesses surrounding the Johnston facility that aren’t already independent sellers on the platform should not be looking at Amazon as a direct competitor when it comes to sales.
“You just can’t compete with scale,” Finkle said. “It’s probably never going to be cheaper to buy toothpaste at a mom-and-pop store than it might be on Amazon.”
Businesses have to adapt, she says. Shops can do more in-store programming, pop-ups and other demonstrations to lean into the in-person shopping experience. That’s something Amazon cannot do, despite its economic might.
“Not everything is a commodity that can be bought and sold online,” Finkle said. “It can be an experience, something unique and special.”
For Gil Mendoza, Amazon effect is more about congestion along Atwood Avenue.
Mendoza, the owner of Atwood Coin and Jewelry, located in one of the small strip malls along Atwood, says he believes parking has become more a hassle, too, because of the influx of Amazon delivery trucks.
“There are a lot of businesses in this area,” Mendoza said. “The closer you get to Route 6, the more and more impacted they get [parking and traffic-wise due to Amazon].”
But the increase in truck traffic may be a worthwhile tradeoff with locals who do order items from the e-commerce giant.
At the official grand opening in July, Amazon touted that having a hub closer to customers in New England reduces delivery times and travel distance, bringing packages to the doorstep faster than ever.
The company’s regional delivery network includes routes reportedly reaching up to 60 miles, covering Rhode Island, parts of Connecticut and Massachusetts
Mike Dressler, owner of Aviva Bikes LLC on Carding Lane in Johnston, says he is seeing the benefits of the fulfillment center being close by. “We’re a bike shop so we order a lot of parts, now we get them same day, sometimes within an hour.,” he said. “I see it as an advantage.”
LABOR CHANGES
The PVD2 facility isn’t the first of its kind in the region – Amazon opened a similar fulfillment center in 2016 on the northern outskirts of Fall River on the Freetown border, along Route 24.
As in Rhode Island, local leaders in Fall River offered generous tax incentives to lure Amazon. The company is saving more than $20 million over 15 years under its own tax increment financing agreement.
Amazon initially projected about 500 workers at the Fall River site – called BOS7 by Amazon – which is about half the size of the Johnston center. By late 2018, the company reported that it had nearly doubled that number.
There was a downside for existing businesses in the area because the wages and benefit packages offered by Amazon made it more difficult for other businesses in the region to recruit and retain workers without increasing personnel costs.
And there are other potential effects on the local labor market when an Amazon warehouse opens, according to a 2018 study by the Washington, D.C.-based progressive think tank Economic Policy Institute.
The institute concluded that counties hosting a new fulfillment center saw a 30% increase in warehousing and storage jobs over two years, but Amazon’s growth displaces jobs at other local retailers that lose business to online shopping and the arrival of Amazon consolidates logistics that previously existed among smaller employers.
The report criticized municipalities and states for offering large tax breaks to attract Amazon facilities because the authors believed the incentives failed to increase the total jobs in a region and the fulfillment centers relied increasingly more on automation without proportional job growth.
For his part, Hales acknowledges Amazon can and does alter labor markets when it sets up a fulfillment center, putting pressure on personnel costs of local businesses. It’s unclear whether that’s happening in Rhode Island.
“Amazon pays above regular rates; they offer extensive job training and job security,” he said. “They will go wherever they can get the best job for themselves and their families. If anything, it will make other employers do more to retain their workers. That can be anything from offering better benefits to more vacation time.”
And what Amazon offers its host municipalities is difficult to resist.
In Johnston, it has committed to a community partnership agreement, outlining a plan to give nearly $35 million over 20 years for public safety, education programs and local business support.
This includes more than $5.3 million for Johnston’s public safety operations, $582,500 annually to Johnston High School’s Pathways in Technology Early College High School career readiness program, and $1.25 million over five years to support statewide education and training initiatives.
Part of that support is aimed at aligning local curricula with the kind of advanced technology Amazon now operates in Johnston.
“That’s going to improve our institutions here all across the state,” Hales said.
Smaller contributions include $50,000 to youth sports, $100,000 to the Johnston Senior Center, $250,000 to the Municipal Land Trust, and $100,000 for Memorial Park.
“They are good neighbors,” Polisena said. “And they are very engaged with our community.”
(Clarification: An earlier version of this story gave an inaccurate number of people employed at the Johnston fulfillment center. Amazon.com Inc. says more than 1,500 people work there full-time as of October.)
