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UPS to Invest $2B in Europe, Asia and the Americas

UPS to Invest $2B in Europe, Asia and the Americas

Atlanta, GA – UPS has committed to investing $2 billion over the next five years in an expansion to its global infrastructure in Europe, Asia and the Americas.

The global package delivery giant announced its new investment strategy at a recent investors’ meeting where it disclosed intentions to inject 4.5 to 5 percent of its annual revenue from 2015 to 2019 in building its network in the named regions in a major effort to “improve the profitability of its e-commerce deliveries.”

According to a statement released by the company, UPS intends to grow total revenue by 5-7 percent per year, and operating profit by 8-11 percent per year. It wants to increase its US domestic revenue by 5-6 percent every year through 2019, and operating profit by 8-10 percent annually.

“UPS is a strong company that has proven its ability to adapt,” said UPS CEO David Abney.

Customer needs, he said, “continue to change, and we’re changing with them by offering new and innovative solutions.”

The delivery firm expects online shopping to account for 51 percent of its U.S. domestic volume by 2019, up from 46 percent this year.

UPS says its On-Road Integrated Optimization and Navigation (ORION) system should reduce an average of seven to eight miles traveled from daily driver routes.

The company is attempting to make lightweight e-commerce packages more lucrative, boosting delivery density by using the new ORION route software and by pricing items by dimension as well as weight.

Technology-optimizing routes and improved planning would translate into lower costs per package, UPS said, adding that ORION is already in use by 22,000 UPS drivers and its full deployment should be complete by 2016.

UPS Signs Lease for New Facility at AllianceTexas

Fort Worth, Texas – Hillwood Properties, developer of the 18,000-acre master-planned, mixed-use AllianceTexas development has secured a new lease from UPS for almost 500,000 square feet in Fort Worth’s Alliance Gateway I.

UPS chose this new 27-acre site due to its proximity to customers and ready access to major roadways and Fort Worth Alliance Airport (AFW), the world’s first industrial airport, the company said.

The new distribution center is expected to open in November and will serve UPS customers in the North Tarrant and South Denton counties.  This new facility will bring 300 package handler jobs and over 50 tractor trailer driver positions to the area.

“This state-of-the-art UPS facility significantly enhances the logistics platform currently offered at AllianceTexas, especially as e-commerce companies continue to locate their fulfillment centers here,” said Tony Creme, vice president of Hillwood Properties, which manages the AllianceTexas development. “UPS has been an integral, valued member of the AllianceTexas project for many years, and we look forward to their continued growth and success with this new location.”

The master-planned AllianceTexas community covers 18,000-acres and is home to over 370 companies, which have developed more than 37 million square feet and created over 37,000 jobs.

The community also includes over one million square feet of retail, restaurant, and entertainment components integrated with a variety of single-family and luxury apartment home options.

09/15/2014