hy This Matters to Distributors: Faster cross-border transportation and expanded air freight capacity could help distributors and manufacturers reduce supply chain disruptions, shorten lead times, and improve access to production-critical parts across North America.
UPS is investing $50 million to expand logistics services for automotive and industrial manufacturers across North America, including the launch of new time-definite air freight service connecting Mexico with the United States and Canada.
The Atlanta-based logistics company said May 29 that the investment includes network enhancements, expanded cross-border capabilities and dedicated industry teams focused on automotive and industrial customers. The move comes as manufacturers face continued pressure from supply chain disruptions, changing trade policies and the need to move critical parts more quickly across North America.
Beginning in August, UPS will offer one-, two- and three-day heavy air freight service to and from Mexico through its North American Air Freight network. The service is designed for manufacturers moving high-value or time-sensitive shipments that support production operations.
Mexico has become an increasingly important manufacturing hub for automotive, industrial, and electrical equipment producers as companies continue to regionalize supply chains and expand nearshoring efforts. Many production networks require components to cross the U.S.-Mexico border multiple times before final assembly, making transportation reliability and customs efficiency increasingly important.
“Our automotive and industrial customers want an easy button for logistics,” Matt Guffey, UPS chief commercial, and strategy officer, said in a statement. “They need reliability, visibility and a partner that understands their supply chains end to end.”
UPS said the expanded air freight offering combines transportation, customs brokerage, and warehousing services within a single network. The company said the approach is intended to reduce border-related delays and provide greater shipment visibility throughout the transportation process.
The investment builds on broader efforts by UPS to strengthen services for manufacturers and industrial shippers. The company highlighted expanded less-than-truckload capabilities through UPS Ground with Freight Pricing, which serves shipments weighing more than 150 pounds, as well as broader next-day delivery coverage for U.S. businesses.
UPS also said it has increased automation across its network, with automated processes now operating in 67.5% of its facilities. The company continues to deploy radio frequency identification technology to improve shipment tracking and inventory visibility.
In addition, UPS has established a team of more than 300 specialists focused on serving automotive and industrial customers. The group is intended to provide industry expertise and support customers managing increasingly complex supply chains.
The investment reflects growing competition among logistics providers to capture manufacturing-related freight as production shifts closer to end markets and supply chains become more regionalized. For distributors and manufacturers, transportation providers are increasingly differentiating themselves through cross-border expertise, shipment visibility, and speed rather than price alone.
UPS reported revenue of $88.7 billion in 2025 and operates in more than 200 countries and territories.
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