UPS Canada Expands Distribution Facility in British Columbia
UPS Canada – division of leading freight service provider United Parcel Service, Inc. (UPS) – is reportedly expanding its center in Kelowna to address rising customer needs in this region.
UPS is well positioned to tap opportunities in this rapidly expanding shipping market. Over the years, the company has established various distribution facilities in dedicated key markets of North and South America.
The company also plans to capitalize on the vast opportunities in the emerging markets of China, India and Japan with health care distribution facilities in the Asia-Pacific region. Further, enhancing healthcare capabilities with the introduction of UPS Temperature True Saver and UPS Proactive Response has also spurred growth at the company’s health care markets.
In this regard, in 2013, the company had added 6.4 million square feet of health care distribution space to its existing healthcare infrastructure. This year, the company acquired U.K.-based Polar Speed, which offers temperature-sensitive pharmaceutical supply chain solutions. The acquisition is expected to fortify the company’s healthcare network across the U.K. Notably, United Parcel Service has added new healthcare distribution facilities in Canada and Mexico this year and plans to expand its presence in Brazil and Chile going forward, to gain a competitive edge against peers like FedEx Corporation (FDX), Expeditors International of Washington Inc. (EXPD) AND Radiant Logistics, Inc. (RLGT).
Going forward, UPS remains hopeful of a change in the scenario in the U.S. and global economy. While markets in the U.S. are likely to pick up growth trends, the European economy is showing signs of recovery. However, political disturbances in Ukraine may impede growth in Europe. Meanwhile, the company foresees mid-single digit growth in Asia, which will likely be accretive to its business.
Further, Latin American markets are projected to witness increased demand for merchandise exports. The overall momentum building up in emerging and established markets should prove beneficial for firms with global operations, like UPS. The company is also banking on the forthcoming enactment of the trade promotion authority (:TPA) bill. Through TPA, the Congress expects to present guidelines to be followed during trade negotiations, which is likely to support global trade.
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