Spain’s municipality of Illescas, head of the region of La Sagra, has experienced strong growth in logistics activity since 2016. Amazon installed two large fulfilment centers in the town: MAD6, opened in 2019, and MAD7, opened in 2021. Between the two, they have about 300,000 square meters of built area and provide continuous employment to more than 3,000 employees, of which more than 1,400 positions are occupied by employees residing in La Sagra.

NERA was retained by Amazon to assess the economic, social, and environmental impacts the installation of its two fulfilment centers has on the municipality of Illescas and on the region of La Sagra, the area where the centers are located and where 45% of its workers reside.

NERA applied direct, indirect, and induced effects analysis to data obtained at the local level to estimate how Amazon’s fulfillment centers have economically, socially, and environmentally impacted the people, companies, and institutions of Illescas and the region of La Sagra.

Our research found that Amazon’s investments have boosted the economic development in the municipality and the region, creating a tractor effect that contributes 84 million euro to the municipality’s and the region’s economy each year. Of these, 43 million euro impact directly through employee salaries and municipal taxes, and 41 million euro impact indirectly and are induced from the companies that supply goods and services to Amazon and as a result of the attraction of other companies that have settled in the area. In total, it is estimated that since 2019, Amazon has contributed 350 million euro to the area’s economy.

According to the study, the implementation of Amazon’s fulfillment centers also led to a 66% reduction in the unemployment rate in Illescas and to a 35% decrease in the region of La Sagra. The arrival of Amazon has especially contributed to reducing the unemployment rate among young people in Illescas, decreasing it by almost half among those under 30 years old.

Our analysis also concludes these economic and social benefits have been achieved without generating any negative impact on the environment.