United Parcel Services Inc. UPS recently announced its entry into Asia’s 3D printing industry with a new factory to be set up by its partner Fast Radius at a UPS facility in Singapore.
The 3D printing factory will be strategically connected to United Parcel’s delivery network to facilitate quick delivery of the orders placed. The company will also form an Advanced Solutions team in Asia to set up a “Centre of Excellence” to develop supply chain solutions and promote 3D printing.
The Managing Director of United Parcel in Singapore, Michelle Ho, highlighted that the country was chosen for the company’s 3D venture into Asia due to its innovation-driven economy. The company had divulged its expansion plans at a press conference attended by representatives from Fast Radius, SAP and Singapore’s Economic Development Board (“EDB”).
Notably, United Parcel and SAP had announced a co-innovation deal this May. Under this agreement, SAP’s wide supply chain and internet of things (IoT) solutions is to be integrated with the additive manufacturing and logistics network of United Parcel.
Highlights of 3D Printing Service
3D Printing is considered to be one of the major technological revolutions of recent times. Use of 3D printing can help businesses reduce inventory for slow moving parts, curtail transportation and production costs, customize goods and lower prototyping and initial manufacturing costs, and receive high-quality prototypes quickly. The CEO of Fast Radius, Rick Smith, mentioned that the Wohlers Report 2016 estimates 3D printing industry to grow to $26.5 billion in 2021 from $5.2 billion in 2015. Companies have been actively pursuing and combining their services to adopt this new technology as it redefines manufacturing across multiple industries.
United Parcel believes that its 3D Printing service in Asia, along with its robust logistics network, will strengthen the continent’s position as a manufacturing hub. The service is expected to help customers increase their operational efficiency with additive manufacturing. The company plans to create an intricate supply network to ensure quick delivery of products. Customers will be able to place orders on Fast Radius’ website or at the factory located at UPS House in Singapore once it becomes functional. Orders will be directed by Fast Radius to the best manufacturing locations in Singapore or the U.S., as deemed necessary. Some orders which can even be shipped on the same day.
We expect this new service to significantly boost the company’s presence in 3D manufacturing space and boost its top-line growth in the future. United Parcel is renowned for providing the best services to customers with a constant focus on innovation and service enhancements.
Zacks Rank and Stocks to Consider
United Parcel currently carries a Zacks Rank #3 (Hold). A better-ranked stock from the wider transportation sector is Copa Holdings SA CPA with a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Some other well-ranked stocks in the sector include Air Transport Services Group ATSG and SkyWest Inc. SKYW. Both these stocks carry a Zacks Rank #2 (Buy).
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