FedEx is spending heavily to allow itself to take in more package volume in the future. The company expects to “substantially increase capacity” for the next holiday shipping season by making big investments in FedEx Ground, Subramaniam said. The company is adding 16 new automated facilities and expanding more than 100 of its existing facilities, he said.
“We’re also expanding our operational solutions that maximize how and when we’re using these existing buildings, for instance, like when we run multiple preloads in an existing building,” said FedEx Ground CEO John Smith.
Matt Arnold, a FedEx analyst at Edward Jones, said in a note that investments in package sorting capabilities and fuel-efficient planes will help the company as it tries to translate rising volumes into profitable growth.
“We expect these investments to drive efficiency and better profitability over time,” he said.
“We’re also expanding our operational solutions that maximize how and when we’re using these existing buildings, for instance, like when we run multiple preloads in an existing building,” said FedEx Ground CEO John Smith.
Matt Arnold, a FedEx analyst at Edward Jones, said in a note that investments in package sorting capabilities and fuel-efficient planes will help the company as it tries to translate rising volumes into profitable growth.
“We expect these investments to drive efficiency and better profitability over time,” he said.