The Positive Impact of AWS on Aragonese Suppliers

Companies in Aragon that work as suppliers to Amazon Web Services (AWS) have increased revenue, employment, and new business lines since the data centers opened in the region in 2022. A study by GfK, part of NielsenIQ and commissioned by AWS, found a positive impact among 85% of the local suppliers surveyed.

AWS suppliers in Aragon increase revenue and profits

60% of supplier companies say they have increased revenue since beginning to work with AWS. Among those reporting a positive effect, average revenue growth reached 35%, compared with 26% recorded by companies in similar sectors that do not work with the technology company.

The trend is also reflected in profitability. 53% of local suppliers reported an increase in net profit, a proportion higher than the 33% seen among non-supplier companies. None of the companies participating in the study rated their business relationship with AWS negatively.

Teruel-based GILVA, which specializes in precast concrete products, says revenue linked to AWS-related projects has increased more than sixfold in three years. The company also puts its workforce growth at around 15%.

Data center activity drives employment and specialization

Nearly 60% of suppliers have expanded their workforce, compared with 41% of companies that do not work with AWS. On average, around one in five employees at the companies analyzed works on projects linked to the company’s infrastructure.

Giral Excavaciones y Obras, a Huesca-based company, says it has increased revenue by nearly 22% and its workforce by 25%, rising from 24 to 30 employees. Meanwhile, Zaragoza-based Gotor Comunicaciones, which provides telecommunications consulting and engineering services, links the collaboration to growth, hiring, and a new specialization in data centers.

Working with AWS has also opened up new business opportunities. 22% of suppliers have created at least one additional line of business, compared with 9% of non-affiliated companies. Among companies with an international presence, 21% attribute part of that expansion to AWS, while 12% have already expanded or are expanding their operations to the company’s other regions worldwide.

75% of Aragonese suppliers expect to grow in the coming years

Business forecasts point to the continuation of this trend: 75% of suppliers expect to grow over the next two or three years, compared with 30% of non-supplier companies. In addition, 27% report greater financial and operational stability since beginning their relationship with AWS.

Three out of 10 suppliers believe the collaboration has given them greater confidence and flexibility in making business decisions. In this context, Amazon plans to invest €33.7 billion in Spain through 2035 to expand and support infrastructure in Aragon.

The report estimates that this investment will contribute €31.7 billion to Spain’s GDP through 2035 and support the equivalent of 29,900 full-time jobs on average each year at local companies, including direct, indirect, and induced positions. The Aragon regional government’s minister for Economy, Competitiveness and Employment, Eva Valle, highlighted the investment’s impact on small and medium-sized businesses.

Related articles

Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted

You may be interested in