UPS heralds expansion for four North America-based distribution facilities by nearly 1.2 million SF

UPS said this week that it has added significant space to some of its North America-based distribution facilities, which the company increases the total size of its supply chain solutions network size by roughly 1.2 million square-feet.

The company’s total global supply chain solutions network is comprised of 596 facilities and about 32.8 million square-feet. UPS offers various services at these facilities, including: warehousing and fulfillment inventory, transportation and returns management; custom kitting and packaging; and store-ready displays.

“These investments are needed to not only support our existing customers and their growth but to also create capacity to support our new business expansion,” said Stephen Hydrick, UPS vice president of North American distribution, in a statement. “As our customers grow, we will continue to find and invest in solutions.”

Two of the UPS distribution facilities that were expanded, in Mira Loma, California and Hebron, Kentucky, are seeing increases in size for the second time this year, following expansions in April.

In Mira Loma, following a 309,000 square-foot expansion earlier this year, UPS has added 228,000 square-feet to its Fontana, Calif.-based campus with a new building (in bringing the total campus size to 1.6 million square-feet), which is one hour from the ports of Los Angeles and Long Beach and five minutes from its UPS regional hub at LA/Ontario Airport and also close to major freeways and rail connections, too.

The Hebron, Kentucky facility, which is accessible to 62 percent of the U.S. population within two days via UPS Ground and 64 percent via UPS Freight, has increased by 151,000 square-feet with a new building, following April’s 274,000 square-foot expansion (bringing its total campus size to 1.25 million square-feet). This location is in close proximity to the Greater Cincinnati Airport and within 600 miles of major metropolitan markets.

UPS’s Louisville, Kentucky facility in Shepardsville, Kentucky has increased by 606,000 square-feet with a new building that is within 20 minutes from the company’s flagship UPS Worldport location, which serves as the single largest fully automated package handling facility in the world, while bring the total size of supply chain solutions space in the Louisville area to 4.4 million square-feet.

In Toronto, Ontario, UPS added 62,000 square-feet to its Mississauga-based facility, which is less than ten minutes from the Toronto Pearson International Airport and brings its total size in the Toronto area to 2 million square-feet.

Alan Amling, UPS Vice President of Global Logistics and Distribution Marketing, said in an interview that there were three primary factors driving the need for UPS to expand these locations: new customers outsourcing their distribution to UPS, business growth from current customers and building in additional capacity for future growth.
In regards to the multiple expansions Mira Loma and Hebron, he said the two expansions were planned to bring on the additional capacity when UPS customers needed it.

And he explained that each of these expansions bring multiple benefits for customers.

“Demand variability is a fact of life for most of our customers,” he said. “These expansions are a visible sign UPS is prepared to flexibly grow with our customers for the long term. Both Mira Loma and Hebron are campus locations providing additional labor and space flexibility for growing customers. The Toronto and Louisville facilities are close to other campus locations and all the facilities have UPS air hubs nearby to allow for later order cutoff times.”