UPS has announced a $50m investment in its logistics network and specialist industry teams aimed at supporting automotive and industrial manufacturers facing increasingly complex supply chain pressures.
The company said the investment includes an expansion of its North American Air Freight (NAAF) operation, introducing time-definite heavy air freight services to and from Mexico for the first time.
The move is designed to strengthen production-critical supply chains across North America, particularly for manufacturers transporting high-value and time-sensitive components.
UPS said the enhanced NAAF offering will begin in August and provide one-, two- and three-day delivery options between Mexico, the United States and Canada.
The company believes the service will help manufacturers reduce border delays, improve shipment visibility and maintain continuity in production schedules.
Matt Guffey, chief commercial and strategy officer at UPS, said manufacturers were increasingly seeking logistics providers capable of managing complex end-to-end supply chains.
“Our automotive and industrial customers want an easy button for logistics,” he said.
“They need reliability, visibility and a partner that understands their supply chains – end to end, today and tomorrow.”
Cross-border air cargo focus
The expansion comes as automotive and industrial supply chains continue to face disruption linked to geopolitical tensions, shifting trade regulations and the growing use of automation.
Unlike traditional multi-carrier freight models, UPS said its integrated approach combines transportation, customs brokerage and warehousing into a single service, helping reduce cargo handovers and simplify cross-border freight movements.
The company said the new Mexico air freight services are particularly targeted at manufacturers relying on just-in-time delivery models, where delays to critical parts can halt production lines.
Investment in automation and visibility
UPS said it has modernised significant parts of its network in recent years to improve speed, shipment tracking and operational reliability.
According to the company, automation technology has now been deployed across 67.5% of UPS facilities, while RFID tracking systems have been introduced throughout its network to improve cargo visibility.
The logistics group also highlighted its UPS Ground with Freight Pricing service for shipments above 150lbs, aimed at customers seeking lower-cost alternatives to traditional less-than-truckload freight services.
In addition, UPS said its Roadie same-day delivery platform is increasingly being used to transport urgent automotive parts to dealerships and repair facilities outside normal operating hours.
David MacNeil, chief executive of automotive accessories manufacturer WeatherTech, said predictable freight services were becoming increasingly important for manufacturers.
“When we know what to expect from shipping, it helps us plan with confidence,” he said.
Specialist automotive logistics teams
Alongside the network investment, UPS said it has established a dedicated team of more than 300 specialists focused on automotive and industrial manufacturing supply chains.
The company said the initiative reflects growing demand from manufacturers for industry-specific logistics expertise as supply chain performance becomes increasingly linked to production efficiency, cost control and competitiveness.
UPS said the investments are intended to help manufacturers simplify operations, gain greater control over shipments and improve resilience across global supply chains.