UPS to invest $2bn in its international infrastructure over the next five years

Parcel delivery giant UPS has revealed its plans to invest $2bn over the next five years throughout its infrastructure in Europe, Asia and the Americas. The company has discussed its future long-term growth plans and during a recent conference revealed it is to invest up to 5% of annual revenue between the years 2015 and 2019. Focus will be on international growth markets and working to improve the profitability of e-commerce deliveries.

The company’s strategy includes growing total revenues by up to 7% on an annual basis and operating profit by 11% yearly also. UPS Chief Executive, David Abney, said: “UPS is a strong company that has proven its ability to adapt.” Abney continued: “The needs of our customers continue to change, and we’re changing with them by offering new and innovative solutions. UPS provides superior customer benefit by connecting a broad portfolio of solutions to the UPS global network. When coupled with efficient investment in technology, UPS generates substantial value for customers and shareowners.”

UPS has said it expects online shopping to be accountable for 51% of its US domestic volume by the year 2019. The company is said to be aiming to make lightweight e-commerce parcels and packages more profitable by upping delivery density through the use of improved technologies, in addition to pricing items by dimensions as well as weight.

Kurt Kuehn, Chief Financial Officer for the company, has said: “The company is adapting well to the rapidly changing market conditions. We are developing the right solutions today, to ensure customers choose UPS for their supply chain needs…” Kuehn also added: “Our innovation, history of service excellence and financial discipline has positioned the company at the forefront of global economic expansion. Our business model and global network are unique, highly efficient, difficult to copy and…extremely profitable.”