UPS invests $50 million and expands Mexico air freight network
The service is intended to improve predictability, reduce border-related delays and provide visibility from origin to destination, helping manufacturers maintain production continuity.
UPS has announced an investment of nearly $50 million to strengthen its logistics network and industry-focused capabilities for automotive and industrial manufacturers across North America, while also expanding its North American air freight services to include time-definite heavy air freight connections to and from Mexico. The move is aimed at supporting manufacturers facing increasing pressure from automation, geopolitical developments and changing regulatory requirements.
The company said the investment covers both network enhancements and the development of dedicated industry teams designed to help automotive and industrial customers manage complex supply chains. UPS stated that its integrated model combines transportation, customs brokerage and warehousing services within a single solution, reducing the number of handoffs involved in cross-border logistics operations and streamlining freight movements across North America.
As part of the expansion, UPS will introduce time-definite heavy air freight services between Mexico and the rest of North America beginning in August. The North American Air Freight service will provide one-day, two-day and three-day delivery options for manufacturers shipping high-value and time-sensitive components. According to the company, the service is intended to improve predictability, reduce border-related delays and provide visibility from origin to destination, helping manufacturers maintain production continuity.
“Our automotive and industrial customers want an easy button for logistics,” said Matt Guffey, UPS chief commercial and strategy officer. “They need reliability, visibility and a partner that understands their supply chains – end to end, today and tomorrow. We have made strategic investments to build the team and the network that meets their needs, unlike any other in the industry.
The announcement builds on a series of network modernisation initiatives undertaken by UPS in recent years. The company said it has enhanced its less-than-truckload offering through UPS Ground with freight pricing for shipments exceeding 150 pounds, a service targeted at automotive and industrial customers seeking small-package network reliability. UPS also highlighted its next-day delivery capabilities, stating that it reaches more U.S. businesses by 10:30 a.m. than other major carriers, providing manufacturers with earlier delivery options for production-critical shipments.
UPS further pointed to increased automation within its operations, noting that 67.5% of its facilities now incorporate automated processes. The company has also embedded RFID sensing technology throughout its network to improve shipment visibility and control. In addition, its subsidiary Roadie offers on-demand and after-hours delivery services, enabling automotive parts to be transported to dealerships and repair facilities on the same day without requiring staff to be present for receipt.
The company also highlighted customer experience as a key outcome of its logistics investments. David MacNeil, chief executive officer of WeatherTech, commented on the company's relationship with UPS, saying: “When we know what to expect from shipping, it helps us plan with confidence. That clarity allows us to stay focused on delivering a great experience for our customers.”
To support the sector-specific strategy, UPS has established a dedicated team of more than 300 subject matter experts focused on automotive and industrial manufacturing customers. The team is backed by thousands of employees across the company's network and is intended to provide expertise tailored to the operational requirements of manufacturers managing global supply chains.
UPS stated that the investment aligns with the growing connection between supply chain performance and objectives such as speed-to-market, cost management, and long-term competitiveness. The company stated that industrial and automotive manufacturers are pressured to modernise operations and manage increasingly complex international supply chains, creating demand for integrated logistics solutions that improve visibility and operational control while supporting production continuity.
UPS reported revenue of $88.7 billion in 2025 and provides logistics services to customers in more than 200 countries and territories. The company said its latest investment is intended to help manufacturers move goods more efficiently across North America while strengthening cross-border trade flows between Mexico, the United States and Canada.
