The UPS Invasion of Europe.

Discussion in 'UPS Discussions' started by arice11, Jul 5, 2015.

  1. arice11

    arice11 Active Member

    This article I found linked on this website www.bidnessetec.com says that UPS and FEDEX are looking to capitalize on the weakening euro-market. The article ties is a relation to a move by UPS which bought the high-value insurance company called Paracel Pro which insured
    things such as wrist watches, jewelry, collectibles and luxury items.
    Fred Smith CEO of FedEX mentions in this article "Despite the fact that there has been low growth, is still an enormous market, both for import-export and within the European Union overall”.
    Overall the move is one that reminds me of the definition of vulture-capitalism, and the footnote of UPS buying out high value insurance companies could be tied with the new trade deal just passed while everyone was distracted by the Confederate Flag and Gay Marriage decision from the court.
    Despite such a strong union prescience I had a favorite supervisor who told me UPS was far more conservative than anyone imagined.
    That came to my mind as I read this article. Which I have posted bellow in case the trolls want to haggle semantics with me.
    http://www.bidnessetc.com/46950-fed...-service-inc-looking-to-benefit-from-weak-eu/

    If I get to lead the safety meeting tomorrow I want to mention this article and tie it in with package handeling and hand to surface methods...since my sup won't review such things which the CHSP tests us on at times.

    I digress.
    Why is UPS so interested in the European market is even our compettor FedEx says their is low growth? Is low growth an excuse to use the principles of capitalist scavenging because the market is that desperate?
    Perhaps this explains why my building wont spend the money to replace the rollers for the unload so they could finish trucks faster...do Europeans do it better than us? cheaper?
     
  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Do yourself a favor and leave the deep thinking to the grown ups.
     
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  3. SCV good to go sir.

    SCV good to go sir. Active Member

    The article you link is very explicit about why UPS and FedEx are interested in the European market. First, Fred Smith says there has been low growth, which doesn't necessarily mean that projected growth (40% ~289.6 billion dollars) is to remain low. Furthermore, he flatly concedes that the market in Europe is big enough to go after. The weakened Euro means that now is the most cost effective time for UPS and FedEx to set up their operations in Europe before it increases (I'm a horrible businessman so someone correct me if my correlation is wrong). Since unemployment remains high in Southern Europe, the locals aren't buying much. So the businesses have turned to the online market and are now selling their products globally, which is going to require global courier service. The weaker Euro also plays a factor here as now is a good time for buyers to buy European goods and get the most for their money. Once the money pumps into Europe, the residents will start buying goods (both locally and globally). By investing in Europe now, both UPS and FedEx will already be in prime positions to serve those communities. As opposed to having to build the operations once the local currency has gotten stronger (more expensive).

    In short, your answer is on the side of our trucks. We are literally synchronizing the world of commerce.
     
    Last edited: Jul 5, 2015
  4. FrigidFTSup

    FrigidFTSup Resident Suit

    It's low growth at the moment because of currency fears due to the Greece idiocracy. There is a mass of potential in the market itself, especially taking market share away from DHL, which owns Europe. Fred Smith is talking low growth in the air market as I do not believe FedEx Ground has operations in Europe.

    The beauty of the Eurozone is it is like the US. Crossing from France to Belgium isn't like crossing into Canada or Mexico. There is no border. Sure it's listed, but there aren't border checks or customs. It's perfect for a ground network. If you want to build infrastructure now is the time to do it. If they use dollars to buy Euros and then build infrastructure you are doing it dirt cheap. One dollar will get you roughly 30% more Euro's than it would have just a year ago. Even if that capacity sits relatively idle for a few years, it's still cheaper than building when the economy picks back up.
    How is it capitalist scavenging? It's smart investing. You're not screwing the little guy by investing in their country and building up infrastructure. If anything you're helping them because you're providing jobs. About 50% of the people in our age group are looking for jobs in Spain right now. You tell me if they look at job opportunities as "Capitalist scavenging"
     
  5. arice11

    arice11 Active Member

    So instead of capitalism its...synchronism?
    Still seems to me that a weak and under performing currency being preyed upon for such gains sounds a bit like capitalism. Not that there's anything wrong with that. Just seemed curious to me that such growth in a company comes on the heals of a big trade deal just passed.
    Would it be correct then to say the companies hitting up the overseas markets are just trying to get a piece of a newly cooked pizza pie? That's all fine and dandy I suppose but the point I guess I was trying to make here was for being a heavily union business, there sure is a lot of conservative and capitalist principles being used for growth..." its bothersome that those jobs and booming market isn't here in the states. Lot of people still out of work here.
    Perhaps in the end it will work for the better, but might as well say sionara to any definition we have of sovereignty now that our markets are in bed with everyone else.
    Way to contribute to the conversation. The others actually took time to discuss and add their input. Why not dissect where I went wrong and bring it to my attention instead of making non-sequitur quips and pretentious remarks about my age?
     
  6. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    You have to admit that it is awfully to take anything that you say seriously.
     
  7. MendozaJ

    MendozaJ Active Member

    You should try reading Hemingway.

    Expansion is good for all involved.
     
  8. Number24

    Number24 #24

    New rollers would be nice.
     
  9. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    I don't know how to respond to any of your threads or replies because you over think and over analize everything to the 10th degree.



    The euro is way down. Ups gets more bang for their buck. End of story.
     
  10. FrigidFTSup

    FrigidFTSup Resident Suit

    Of course it's capitalism. It's not being preyed upon. That's what happens when currency is weak! What do you think everybody does when ours is weak?

    What's all the poor Europe business about?
    Unions don't stop capitalism. They're a tool to prevent capitalism from being the end all, be all.

    The growth potential in the US is much smaller. In Europe you have one big guy. It's a lot easier to take market share when there is a monopoly than a duopoly like we have here in the US.
     
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  11. Box Ox

    Box Ox Camacho for President!

    "The UPS Invasion of Europe"

    [​IMG]
     
  12. realbrown1

    realbrown1 Annoy a liberal today. Hit them with facts.

    I was just about to tell you the same thing.
     
  13. arice11

    arice11 Active Member

    All this hate just because I wanted to discuss a topic. Yes it was a stretch but I found what most the people who responded intelligently were actually informative, which was what I was aiming for in the first place.
    I guess not everyone grows out of the middle-school bully mentality. If their paradigm is threatened by even the slightest inquisition of thought they put up these walls of mockery and contempt. Are your minds so closed off that the only thing you can say is useless negative post?
    I was waiting for someone to make a WWII reference,

    Nice work!
     
  14. SCV good to go sir.

    SCV good to go sir. Active Member

    No. The two concepts aren't exclusive from each other. The means of productions for both ParcelPro and TNT are still privately owned (UPS and FedEx respectively). Thus capitalism is still in effect. The expansion of both UPS and FedEx into Europe helps link their economic community to ours and coordinates the transatlantic shipping systems to work in unison.

    I don't mean to be condescending but I'm not sure you entirely understand the definition of capitalism. Simply put, capitalism is private ownership of an industry. It has nothing to do with taking advantage of a weaker currency.

    Yes, both UPS and FedEx are trying to get a piece of the action. The Teamsters and UPS are two different entities with different interests and goals. Just because UPS is unionized does not mean that it shares the values held by the Teamsters. Ultimately, UPS is concerned with being the premier courier company and making profits. Thus it should be no surprise that their principles are different than the Teamsters. I feel like you're confusing capitalism with corporatocracy. Both UPS and FedEx already have strong presences in the United States. There's not as much potential for growth for either of them here as relative to Europe where they have a much smaller presence. You cannot fault them for where the market is booming. That's well beyond their control and all they can do is react. If the expansion into Europe indicates anything, it's that both companies want to grow. Look at the history of both companies within the US, both of them expanded when the opportunity presented itself. That can't last forever.

    You're being dramatic with the sovereignty issue. There are linguistic, cultural, geographic, political, and historic differences (among others) between the US and Europe. This situation isn't even proposing a singular currency between the two. All that's happening is that the markets in US and Europe are going to be more accessible to the populations in both regions. Conducting commerce across the Atlantic is going to become easier. This serves to create more jobs in Europe (and to a lesser extent probably the US as well) and help pump some life into their economy. And so what if our markets become more integrated. Is an increase in the variety of products and services to millions of consumers a bad thing? This should stand as testament to how awesome humans are. That two populations geographically isolated from each other can provide goods and services to each other when physical barriers would normally make that impossible.
     
  15. OLDMAN3

    OLDMAN3 Guest

    Europe is a huge gamble right now.
    Greece is the first domino, if they pull out of the eurozone, Italy,Portugal and Spain fall next.
    Civil unrest is already happening in Greece.
    The US markets will be severely impacted as well.
    Not a good time to be expanding in Europe.
    Get ready for a very bumpy ride!
     
    Lasted edited by : Jul 6, 2015
  16. arice11

    arice11 Active Member

    Thank you
    SCV good to go sir.

    My entire point of this thread was to get intelligent and informed responses...I was a bit dramatic in my delivery but I was merely embellishing a little for added effect.

    I actually enjoy talking about these topics cause it brings out some interesting conversations...not all of them smart or in reply to the argument, at least I can find who is willing to discuss topics even if they are sort of non-issue.