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When does UPS decide to build new facilities?
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<blockquote data-quote="UPS Lifer" data-source="post: 292415" data-attributes="member: 9789"><p>In my 36 year history in the So Cal area (3 districts) I watched 7 or eight major hubs go in. There were a lot of small buildings that were consolidated into major hubs. UPS projects 10 years out. When they build a new facility, there are numerous things they look at, such as how the transportation dept (feeder) will be affected (or will affect the proposed building). Where are the major routes, Pick up volume and city growth...etc.</p><p></p><p>I watched a couple of buildings meet the 10 year growth projections in 3 to 4 years. A couple of buildings had to go to 24 hour operations until additional hubs could be built!</p><p></p><p>They did a great job in projecting growth for Ontario (Regional Air Hub). The initial building was built in 90-91 and they just finished adding a 4th phase which affected the hub. The last couple of expansions were all hub related. They now have 16 PDs for just the ground operation. The ground twilight operation is maxed at between 200-250K for the span. The building started with about 100 drivers and is as approx 300+ now and volume (in '91) of 75K ground and 25 K air now approx 250K premium and that does not include air freight and International! So the overall volume for one building is around 500K! </p><p></p><p>Now - that leads me to believe that the money to expand will go to the areas that will provide the best opportunity for growth. Major hub feeds will tend to be looked at closer than smaller buildings which will be allowed to burst at seams to keep the major networks from bottlenecking. This is similar to what happens at major airports when there is a problem with weather. Other airports are affected (domino). </p><p></p><p>To keep the overall network working affectively you keep the main arteries clear! UPS is always looking to get the biggest return on investment...it just makes sense.</p></blockquote><p></p>
[QUOTE="UPS Lifer, post: 292415, member: 9789"] In my 36 year history in the So Cal area (3 districts) I watched 7 or eight major hubs go in. There were a lot of small buildings that were consolidated into major hubs. UPS projects 10 years out. When they build a new facility, there are numerous things they look at, such as how the transportation dept (feeder) will be affected (or will affect the proposed building). Where are the major routes, Pick up volume and city growth...etc. I watched a couple of buildings meet the 10 year growth projections in 3 to 4 years. A couple of buildings had to go to 24 hour operations until additional hubs could be built! They did a great job in projecting growth for Ontario (Regional Air Hub). The initial building was built in 90-91 and they just finished adding a 4th phase which affected the hub. The last couple of expansions were all hub related. They now have 16 PDs for just the ground operation. The ground twilight operation is maxed at between 200-250K for the span. The building started with about 100 drivers and is as approx 300+ now and volume (in '91) of 75K ground and 25 K air now approx 250K premium and that does not include air freight and International! So the overall volume for one building is around 500K! Now - that leads me to believe that the money to expand will go to the areas that will provide the best opportunity for growth. Major hub feeds will tend to be looked at closer than smaller buildings which will be allowed to burst at seams to keep the major networks from bottlenecking. This is similar to what happens at major airports when there is a problem with weather. Other airports are affected (domino). To keep the overall network working affectively you keep the main arteries clear! UPS is always looking to get the biggest return on investment...it just makes sense. [/QUOTE]
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