Quebec logistics and parcel delivery companies, such as WIPTEC, could take advantage of the void left by the closure of Amazon’s seven warehouses in the Quebec landscape.
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“We are going to try to do well with the departure of Amazon order preparation centers because we could potentially replace a certain volume of business that was done directly by them,” mentions the CEO of WIPTEC, a company specializing in warehousing and shipping products, Martin Ball.
He could obtain opportunities with Quebec companies who will decide to keep their inventory in Quebec while continuing to sell their products on Amazon.
“We are going to become an alternative for them,” explains the businessman. For some entrepreneurs, it doesn’t make sense for their inventory to be elsewhere than in Quebec.”
However, WIPTEC is poised for a significant increase in package processing.
“Our Longueuil center is huge and our processing capacity is only 30%. It could roll a much larger volume of packages.”
At the time of writing, WIPTEC had not made any representations to companies that might want to turn to them after Amazon’s announcement.
“It’s too early,” emphasizes Mr. Ball, who believes that the biggest losers in the situation are the 1,700 employees who were laid off.
Not in recruitment mode
Despite Wednesday’s surprise announcement, WIPTEC will not deviate from its usual cycle when it comes to hiring new employees.
-“We are not in a period of massive hiring at the moment,” says Mr. Ball. January, February and March are quieter months.
“Subsequently, we restart our hiring periods at the end of March.”
He won’t hide that Amazon employees check several boxes to work at his company.
“They’re exactly the same kind of people. This can be good news for hiring people who already have the qualifications and experience.”
An overvalued market?
When we analyze Amazon’s departure from Quebec, we can quickly think that the main reason is the attempt to unionize the warehouses.
Mr. Ball, who is well aware of the reality of this industry, has another theory.
“Amazon expanded at high speed in Canada, perhaps thinking that the market was much bigger and much stronger.
“They may have realized that they had war infrastructure for a market that is not necessarily there. They may have simply decided to repatriate their order preparation to Ontario.
“It may make sense logistically, but it looks bad because of unionization.”
– With the collaboration of Martin Jolicoeur, Journal de Montréal and the QMI Agency
