PA Chamber Investor member UPS recently made a sizable investment in Pennsylvania, with the opening of its fourth-largest facility in the nation in the heart of Dauphin County. We asked UPS’s Vice President of State Government Affairs, Mark Giuffre, about what this sizable investment means in terms of the company’s commitment to Pennsylvania – both now and in the future.
UPS just opened its fourth largest facility in the country in Dauphin County! Tell us a little more about the hub’s new operations.
UPS opened its fourth largest U.S. distribution hub in Middletown, Pennsylvania. The nearly 800,000 square-foot facility houses the company’s latest sorting, processing and data-capturing technology. And it is home to the largest natural gas fueling station in UPS’s network. Businesses of all sizes gain speed to market from UPS’s connectivity to regional transportation infrastructure.
The new super hub and three package sortation and distribution centers create more than 1,700 full-time equivalent jobs. Our team of dedicated employees works hard to deliver what matters for our customers and the communities we serve, and we are equally committed to our employees by providing rewarding positions and lifelong careers where their input and contributions are respected and valued.
UPS also has one of the strongest and longest-standing promotion-from-within cultures of any company in America. On average, UPS’s package delivery drivers earn $95,000 per year in wages, plus an additional $50,000 in health, welfare and pension contributions, for a total compensation package of about $145,000.
How does this massive investment factor into UPS’s future growth plans?
The addition of regional “super hubs” like Middletown, create more options for how packages are transported along the way to their final destinations. “Super hubs” increase the speed and flexibility for how packages move through UPS’s global smart logistics network, and have significantly higher package processing capacity than most package operations facilities.
UPS is more than halfway through a three-year strategic investment in global network enhancements. When the investment cycle is complete, new automated facilities will drive 30 to 35 percent improved productivity when compared to manual processing in older sites.
Through best-in-class engineering, UPS is reimagining its network with innovation-driven investments to achieve carbon neutrality by 2050. The new renewable natural gas (RNG) fueling station will:
- Remove 8 million gallons of diesel fuel per year;
- Help UPS reach 40 percent alternative fuel-in-ground operations by 2025; and
- Lower our carbon footprint while still delivering for our customers.
As our UPS Buildings and Systems Engineering Vice President Crystal Lassiter says, “We are on a mission to improve our ground operations network, create local jobs and bring to life sustainable solutions. With a focus on getting things right, we’re able to expand our bottom line.”
The PA Chamber often touts Pennsylvania’s highway accessibility and geographic location as reasons to invest here in the Commonwealth. Is this a reason why UPS chose this site and other sites across PA?
Businesses of all sizes gain speed to market from UPS’s connectivity to regional transportation infrastructure. In addition, increased capacity will create an even better Customer Experience for our local shippers in the Carlisle, Harrisburg, Lehigh Valley and Philadelphia areas because of the great logistics proximity to key population and business centers across the Northeast. It will facilitate enhanced movement of goods between markets that include Philadelphia, Pittsburgh, New York City, Baltimore and Washington, DC.
In addition to building in Dauphin County, UPS is also building or expanding at another three sites in PA – Lehigh Valley, Dickinson Township and Philadelphia. We’re so glad you’re here! What solidified UPS’s long-term plans to drive jobs and growth to the Keystone State for the long haul?
Central and eastern Pennsylvania are rapidly expanding logistics areas as the East Coast continues to be a thriving center of population and e-commerce growth. Customers of all sizes in the Northeast will benefit from a new ‘super hub’ in Harrisburg and new package sortation and distribution centers in Carlisle, Lehigh Valley and Philadelphia.
From small business owners growing their customer base to manufacturers moving parts and products, and e-tailers looking for efficient and fast order fulfillment, companies of all sizes throughout the Northeast will benefit from UPS’s latest global network transformation initiatives. UPS is grateful for the strong relationship we continue to build with the Commonwealth of Pennsylvania, and we’re excited to bring new jobs. It’s part of the commitment we make to engage in the communities where we are expanding our operations.
How does workforce development factor into your goals now and in the future?
UPS has been an engine for U.S. job growth since the company was founded with a handful of employees in a Seattle basement in 1907. We have a long history of steadily creating jobs that pay competitive wages and rewarding people who stay. Today, more than 21,000 UPS employees provide Pennsylvania businesses and consumers with package delivery, ground freight, air, freight forwarding, healthcare, and contract logistics services. Our employees are some of the hardest-working people in America and they are critical to UPS’s success. We provide industry-leading wages and benefits, and we intend to remain highly competitive so we can continue to attract and retain the best talent.