UPS Expands 3D Printing Services across 100 Locations in US
Following the successful launch of 3D printing services in select markets, United Parcel Service, Inc. (UPS) is now exploring newer opportunities with the introduction of this service across 100 additional locations in the U.S.
Given the growing business needs of small business entities, the company foresees a strong demand for 3D printing services in the near term. We believe the diverse expansion of UPS’ portfolio with new products and services will give it a competitive edge against peers like FedEx Corp. (FDX) and also fuel customer accretion.
UPS started its pilot program on 3D printing services in 2013. The company used small businesses, start-ups and other professionals to test the feasibility of its offering on the commercial platform.
UPS stores, in collaboration with Stratasys – manufacturer of 3D printers and 3D production systems, represent the first retailer offering 3D printing services. The company made its debut 3D print service in 6 locations and since then, there has been no looking back. The growing demand is perfectly in sync with the rapid growth of the 3D printing industry, which we believe offers companies like UPS significant opportunity to leverage on.
Going forward, UPS is hopeful of a change in the scenario in the U.S. and global economy. While markets in the U.S. are likely to exhibit growth trends in some time, the European economy is already showing signs of recovery. However, political disturbances in Ukraine may impede growth in Europe. The company foresees mid-single digit economic growth in Asia, which should prove accretive to its business.
Further, Latin American markets are projected to witness increased demand for merchandise exports. The overall momentum build-up in emerging and established markets should also prove beneficial to firms with global operations, like UPS. The company is also banking on the forthcoming enactment of the trade promotion authority (:TPA) bill. Through TPA, the Congress expects to present guidelines to be followed during trade negotiations, which is likely to support global trade.
UPS currently has a Zacks Rank #4 (Sell).
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