Amazon adds to 'recession proof' London, St. Thomas

The mayor of St. Thomas, Ont. said the industrial boom in his city, and areas around it, is creating a stable economic environment for decades to come.

Mayor Joe Preston commented as Amazon Canada confirmed it will hire 1,000 employees this fall to work its newly completed fulfillment centre in Southwold Township.

Amazon’s 2-million sq. ft. is set to open on Oct. 1 and comes on the heels of Volkswagen announcing a $7 billion plant in St. Thomas.

The battery cell facility will be the largest manufacturing plant in Canada.

“We think some of these developments have made it so we’re a little recession-proof. We’re going to have a lot of extra growth going forward over the next few decades,” Preston told CTV News London Thursday.

Preston’s optimism is a significant departure from just a few years ago.

City of St. Thomas Mayor Joe Preston, as seen on Aug. 3, 2023. (Sean Irvine/CTV News London)

Then, the former Ford Plant, now the site of Amazon, was being torn down.

Southwold Mayor Grant Jones could do little as he watched nearly 40 per cent of his municipal coffers vanish.

“That is a huge loss to our tax base,” he said in a 2019 interview.

But on Thursday, Jones was sporting a huge smile.

Fresh off a tour of the Amazon facility, he was excited about new revenue and job opportunities.

“It's where somebody will get a start in the world and get some extra training on behalf of Amazon and go from there,” he said.

Most of the 1,000 new positions will be on the floor of the sprawling plant. Fulfillment associates will start at $20/h with benefits and retirement savings options.

Southwold Mayor Grant Jones, as seen on Aug. 3, 2023. (Sean Irvine/CTV News London)But with the centre dubbed YXU-1, as an homage to London’s international airport, some wonder if it leaves room for more jobs and potential growth.

“So it’s 1,000 at launch and definitely we are expecting more growth in the future as we expand into the first quarter of next year. So definitely expect the number to go up,” stated Himanshu Kalia, general manager of YXU-1.

Still, Jones cautioned Amazon, or any other industry on the former Ford site owned by Broccolini real estate, will need more power to expand.

He hopes the province will step up to help make that happen.

Elgin County Warden Ed Ketchabaw also hopes to see more growth at the site. But for now, he joins others in celebrating 1,000 new jobs.

“To have it come to fruition now is great. It was suggested it may be delayed a little, but to have it moving forward is just tremendously exciting,” he said.