UPS to open two sorting plants in Dallas, to boost peak season capacity
UPS is establishing two major new package distribution facilities in the Dallas-Fort Worth area of the United States.
The world’s largest package delivery company said it has leased both buildings and is modifying them to serve as distribution facilities.
The new facilities will be completed in November, in time for the run-up to Christmas.
It will help address the capacity shortages that UPS suffered in last year’s festive season, which significantly dented the Atlanta-based company’s profits in recent quarters, as well as its reputation among customers facing delivery delays.
UPS has been investing $175m this year in additional network capacity ready for this year’s peak season.
The new buildings in the Dallas-Fort Worth area will serve the largest metropolitan area by population in Texas and the fourth largest in the United States.
One of the new buildings, called “Independence”, in the Alliance development of Fort Worth will provide 495,000 square feet (46,000 sq m) of space. It will create 300 package handling jobs and 50 tractor trailer driver roles, serving customers in the North Tarrant and South Denton counties.
The second building, in McKinney, will provide 215,000 square feet (20,000 sq m) of capacity, adding 120 full-time jobs in the area as it serves customers in Collin County. UPS said it was expecting to add a further 200 part-time jobs there by 2017.
“Smart” building
The company is installing “state-of-the-art” package sorting technology in its new facilities, using planning software to determine multiple package sorting configurations so that it will have flexibility to balance volume surges and other demand changes.
UPS already has six buildings in the area, and will add more than 400 full time jobs and more than 200 part time jobs with the new buildings, taking its work force in the area to 7,500.
“UPS continues to see growth in and around the Dallas-Fort Worth Metroplex,” said Craig Wiltz, president of the Red River District. “These two new buildings increase our ability to address the rapid expansion of residential and commercial demand and significantly increase our employee base in the area.”
UPS faced problems with the weather last Christmas as well as its shortage of network capacity as more Americans stayed home to shop online for their gifts, instead of venturing out to brick and mortar retailers.
It prompted the company to take on 30,000 more temporary sorting staff than it had been planning on hiring for the peak period in order to cope with the country’s 10% year-on-year growth in online shopping.
Rivals FedEx also attracted criticism for its performance during the Christmas season, but UPS delivers more packages.
