FedEx, UPS Underway with $3.9 Billion in Active U.S. Projects

Researched by Industrial Info Resources (Sugar Land, Texas)--Home delivery of goods in the U.S. picked up momentum during the 2020 onset of the COVID-19 pandemic and has remained elevated ever since. In addition to the U.S. Postal Service, FedEx Corporation (NYSE:FDX) (Memphis, Tennessee) and United Parcel Service Incorporated (UPS) (NYSE:UPS) (Atlanta, Georgia) are the prominent companies for shipping goods. Both companies are seeking to increase and streamline their distribution footprints with more than 40 active projects, valued at more than $3.9 billion, in the U.S.

Among UPS and FedEx's most prominent projects are those involving the companies' air fleets. FedEx is underway with an expansion of its air hub in Indianapolis, Indiana. The project entails constructing 16 new aircraft gates, two package-sorting facilities and another building to handle truck deliveries. The aim is to have the facility process 147,000 packages per hour upon completion later this year. In addition, FedEx will move some of its heavy maintenance operations from Los Angeles, California, to Indianapolis when the company's lease expires at a Los Angeles air facility in 2024. Construction on the Indianapolis hub has been underway since 2018. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for the detailed report.

Also occurring at the Indianapolis hub is the expansion of the cold storage area used for pharmaceutical and biotech products. The 19,000-square-foot facility is expected to be completed in early 2024. Subscribers to Industrial Info's Pharmaceutical-Biotech Project Database can click here for more information.

In Kentucky, UPS is at work on its own aircraft maintenance and repair facility at the Muhammad Ali International Airport in Louisville. The project entails constructing a two-bay, multi-position maintenance hangar of about 275,000 square feet to help accommodate line maintenance on the company's growing air fleet, including its large 747 freighters. The facility will have seven ramp parking positions for airplanes. Maintenance work performed at the hangar will include aircraft service checks and engine changes among other planned maintenance. Construction kicked off last year and is expected to be completed late this year. Subscribers can click here for more details.

Among UPS' other prominent projects, this one focused on its ground fleet, is a grassroot distribution center in Mebane, North Carolina. The project kicked off in 2021 and included demolishing an existing building before constructing a new, 525,000-square-foot distribution center building that includes an automotive shop, vehicle wash bay and customer center. Construction is expected to be completed later this year, with an initial capacity to process 15,000 packages per hour, ramping up to 30,000 packages per hour in 2024. The project potentially could be followed by two subsequent phases of construction, with Phase II including a 225,000-square-foot building addition. Subscribers can click here for related reports.

Aside from its air hub project in Indiana, which gives the state the leading position for the company's spending, FedEx is spending most on projects in Texas. Nearing completion is a 251,000-square-foot distribution center in Temple, Texas, about 70 miles north of Austin. In Baytown, Texas, general contractor Pontikes Development LLC (Houston, Texas) is expected to wrap up a new, 337,000-square-foot FedEx distribution center this summer. Subscribers can click here to see the report on the Temple project and click here for the report on the Baytown facility.

Subscribers to Industrial Info's GMI Database can click here to see reports for all of the projects discussed in this article and click here to see the related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).