Reports related to this article:
Project(s): View 3 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
en
Researched by Industrial Info Resources (Sugar Land, Texas)--FedEx Corporation (NYSE:FDX) (Memphis, Tennessee) recently announced that capital expenditures for fiscal-year 2016 will increase 7% to about $4.6 billion, from $4.3 billion in 2015. The increase reflects higher investments needed for the continued expansion of the Ground segment of the business, and planned aircraft deliveries to support the FedEx Express fleet modernization program.
In the last few years, FedEx Express has retired from service and adjusted the retirement schedules of numerous older, less efficient aircrafts and engines. FedEx added 17 new Boeing 767-300 Freighters in fiscal year 2015, and plans to add at least 11 more in fiscal year 2016.
FedEx Ground has been the most successful segment in FedEx's portfolio for more than a decade. FedEx has invested heavily in the Ground business lately to benefit from the long-term growth of e-commerce (online) shopping. Two years ago, capital expenditures for the Ground segment were just $555 million. This year, it was $1.25 billion; and for 2016, it is projected to increase to $1.6 billion. Industrial Info is tracking 32 projects for FedEx Ground totaling $1.82 billion that have started, or are expected to start, construction this year.
FedEx Ground is planning a new regional distribution center in Yonkers, New York. The $121.2 million, 123,000-square-foot facility is expected to create 43 jobs, and it will relocate 38 jobs from the current FedEx distribution center in the Bronx. Aurora Contractors Incorporated (Ronkonkoma, New York) is attached as the design-build firm, and construction is expected to be completed by the end of first-quarter 2016.
FedEx Ground, with developer The Rockfeller Group (New York, New York), also intends to build a $335 million mega-hub in Allen Township, Pennsylvania. The plans call for an initial 800,000-square-foot distribution center, with ancillary buildings (vehicle maintenance building, salt storage, and truck wash), that in additional phases will expand to about 1.2 million square feet. Construction is expected to begin toward the end of 2015. FedEx is working with BL Companies (Meriden, Connecticut) as the architect and engineering firm, and Barton Malow (Southfield, Michigan) as the general contractor.
FedEx Corporation is rapidly expanding to catch up to its top competitor, United Parcel Service (NYSE:UPS) (Sandy Springs, Georgia), which has been offering ground service much longer than FedEx. (FedEx has only had its home delivery service since 2000.) With an extensive ground network system already in place, UPS has a lower capital spending budget. The company anticipates its capital expenditures for 2015 being only about $3 billion and has not announced its 2016 expectations. There are several projects planned to expand capacity, but most are smaller scale, involving expanding UPS's footprint, or constructing smaller centers, like the anticipated $7 million, 17,000-square-foot "Hub in a Box" mobile package-sorting facility on a 7-acre leased site at Harrisburg International Airport, Pennsylvania.
UPS also plans to expand the footprint of its largest distribution center, the Chicago Area Consolidation Hub (or CACH), in Hodgkins, Illinois. At 1.5 million square feet, with more than 65 miles of belting and conveyors, the Hodgkins facility is the world's largest ground package distribution facility in full operation. UPS is expanding the staging area of the facility and will add a detention pond to catch water runoff.
Earlier this year, UPS announced a $35 million investment to expand its existing Northeast San Antonio distribution center. Powers Brown Architecture (Houston, Texas) is leading the expansion, which will include building additional warehouse space, an auto shop, and performing site renovations and improvements. Construction has not yet started, but the expansion is expected to take six months to complete.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
In the last few years, FedEx Express has retired from service and adjusted the retirement schedules of numerous older, less efficient aircrafts and engines. FedEx added 17 new Boeing 767-300 Freighters in fiscal year 2015, and plans to add at least 11 more in fiscal year 2016.
FedEx Ground has been the most successful segment in FedEx's portfolio for more than a decade. FedEx has invested heavily in the Ground business lately to benefit from the long-term growth of e-commerce (online) shopping. Two years ago, capital expenditures for the Ground segment were just $555 million. This year, it was $1.25 billion; and for 2016, it is projected to increase to $1.6 billion. Industrial Info is tracking 32 projects for FedEx Ground totaling $1.82 billion that have started, or are expected to start, construction this year.
FedEx Ground is planning a new regional distribution center in Yonkers, New York. The $121.2 million, 123,000-square-foot facility is expected to create 43 jobs, and it will relocate 38 jobs from the current FedEx distribution center in the Bronx. Aurora Contractors Incorporated (Ronkonkoma, New York) is attached as the design-build firm, and construction is expected to be completed by the end of first-quarter 2016.
FedEx Ground, with developer The Rockfeller Group (New York, New York), also intends to build a $335 million mega-hub in Allen Township, Pennsylvania. The plans call for an initial 800,000-square-foot distribution center, with ancillary buildings (vehicle maintenance building, salt storage, and truck wash), that in additional phases will expand to about 1.2 million square feet. Construction is expected to begin toward the end of 2015. FedEx is working with BL Companies (Meriden, Connecticut) as the architect and engineering firm, and Barton Malow (Southfield, Michigan) as the general contractor.
FedEx Corporation is rapidly expanding to catch up to its top competitor, United Parcel Service (NYSE:UPS) (Sandy Springs, Georgia), which has been offering ground service much longer than FedEx. (FedEx has only had its home delivery service since 2000.) With an extensive ground network system already in place, UPS has a lower capital spending budget. The company anticipates its capital expenditures for 2015 being only about $3 billion and has not announced its 2016 expectations. There are several projects planned to expand capacity, but most are smaller scale, involving expanding UPS's footprint, or constructing smaller centers, like the anticipated $7 million, 17,000-square-foot "Hub in a Box" mobile package-sorting facility on a 7-acre leased site at Harrisburg International Airport, Pennsylvania.
UPS also plans to expand the footprint of its largest distribution center, the Chicago Area Consolidation Hub (or CACH), in Hodgkins, Illinois. At 1.5 million square feet, with more than 65 miles of belting and conveyors, the Hodgkins facility is the world's largest ground package distribution facility in full operation. UPS is expanding the staging area of the facility and will add a detention pond to catch water runoff.
Earlier this year, UPS announced a $35 million investment to expand its existing Northeast San Antonio distribution center. Powers Brown Architecture (Houston, Texas) is leading the expansion, which will include building additional warehouse space, an auto shop, and performing site renovations and improvements. Construction has not yet started, but the expansion is expected to take six months to complete.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
