In 2020, as a response to the Covid-19 pandemic, lockdowns, and recession, US companies scaled back domestic capital investments by 7 percent. As such the tech-broadband, e-commerce sector has been critical to keeping people working and propping up the economy. At the forefront of tech and e-commerce is Amazon. Amazon’s US capital spending increased in 2020 by 75 percent to $34 billion, according to a new report titled “Investment Heroes 2021” by the Progressive Policy Institute.
The willingness of companies to keep spending was a major factor in keeping large chunks of the economy moving despite the pandemic. Capital investment is what enables the creation of high-productivity, well-paying jobs. Collectively the top 10 companies in the Investment Heroes list added 483,000 jobs in 2020, led by Amazon’s massive jump from 798,000 workers in 2019 to 1,298,000 workers in 2020. The industries represented by the top 10 Investment Heroes added 234,000 jobs between February 2020 and April 2021, while the rest of the private sector lost over 6 million jobs.
The top fifteen spending companies in 2020 were:
- Amazon- $34 billion
- Verizon Communications- $16 billion
- AT&T- $15.5 billion
- Alphabet (Google)- $14 billion
- Intel- $12.5 billion
- Facebook- $11.7 billion
- Exxon Mobil- $11 billion
- Microsoft- $11 billion
- Duke Energy- $10 billion
- Comcast- $9.5 billion
- Exelon- $8 billion
- Walmart- $8 billion
- Charter Communications- $7.5 billion
- Chevron- $6 billion
- Apple- $6 billion
In New York City, Amazon’s US capital spending increase is apparent. Amazon has a growing portfolio of warehouse and distribution centers in and around New York City producing upwards of 6,000 jobs. Furthermore, market researchers estimate that more than 500 million packages were delivered to New York City in 2018, up 13 percent from 2017. More than 1 billion e-commerce packages will be delivered by 2024 if this growth continues.
To read the full 2021 PPI Investment Heroes report click here.