UPS is investing nearly $50 million in its automotive and industrial logistics operations and expanding air freight service to Mexico as manufacturers look for faster and more reliable ways to move parts across North America.
The company said the investment includes network improvements and the creation of dedicated teams focused on serving automotive and industrial customers. UPS also announced it will launch a new time-definite air freight service between Mexico and the rest of North America beginning in August.
The expansion marks the first time UPS will offer its North American Air Freight service to and from Mexico. Customers will be able to choose one-, two-, or three-day delivery options for high-value and time-sensitive shipments.
The move comes as manufacturers continue to deal with supply chain disruptions, changing trade policies, and growing pressure to keep production lines running without interruption.
“Our automotive and industrial customers want an easy button for logistics,” said Matt Guffey, UPS Chief Commercial and Strategy Officer. “They need reliability, visibility, and a partner that understands their supply chains – end to end, today and tomorrow. We have made strategic investments to build the team and the network that meets their needs unlike any other in the industry.”
UPS said the new Mexico air freight service is designed to reduce border delays and provide better shipment tracking for customers moving parts and products across the region.
The company also discussed several recent network improvements aimed at manufacturers. Those include expanded next-day delivery coverage for businesses, more automation across its facilities, RFID tracking technology, and same-day delivery options through Roadie, a UPS company.
UPS said more than 67% of its facilities now use automation technology to improve package handling and visibility throughout its network. The company believes those investments will help manufacturers respond more quickly to changing market conditions while maintaining greater control over their supply chains.
“When we know what to expect from shipping, it helps us plan with confidence,” added David MacNeil, Chief Executive Officer of WeatherTech. “That clarity allows us to stay focused on delivering a great experience for our customers.”
