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UPS to Spend $48 Million Upgrading 27 Temperature-Controlled Facilities
United Parcel Service will upgrade facilities across the Americas, Europe and Asia to handle temperature-sensitive shipments. The move targets expanding demand for biologics and GLP-1 drugs.
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UPS is spending $48 million to upgrade 27 temperature-controlled facilities in the Americas, Europe and Asia. The sites, located in the Americas, Europe and Asia, are designed for shipments that require specific temperatures. The company said the upgrades will strengthen its cold-chain network for medicines and pharmaceuticals that must remain within defined temperature ranges during transit.
Kate Gutmann, UPS president of international, healthcare and supply chain solutions, said the facilities will ensure critical treatments reach patients safely. Demand for temperature-sensitive biologics is projected to grow at an 8.3 percent compound annual rate through 2033 and reach a market value of roughly $39.1 billion, according to Growth Market Reports.
The World Health Organization has stated that up to 50 percent of global vaccines are wasted annually, with a significant share linked to cold-chain storage problems.
John Bolla, UPS Healthcare president, said the investments align the company's supply chain to protect innovative treatments and support better patient outcomes. UPS has previously identified healthcare as one of its largest growth opportunities. CEO Carol Tomé told analysts on the first-quarter earnings call in April that the company's global healthcare portfolio has gained market share every year since 2021.
She added that UPS recorded its first $3 billion healthcare revenue quarter in the period, with all three segments posting year-over-year growth, and that the company intends to continue expanding in the sector.
