Local UPS to ship from new address
UPS plans to build 425,000-square foot distribution center at corner of Plaza Dr. and Riggin Road
By Reggie Ellis @Reggie_SGN
VISALIA – UPS in Tulare County is on the move … and not just delivering your Christmas gifts.
The City of Visalia confirmed last week that UPS is in preliminary talks to build a new 425,000-square foot distribution center in Visalia’s Industrial Park. The shipping giant purchased 58 acres at the northeast corner of Plaza Drive and Riggin Road last fall.
“Based on our conversations with company contacts we feel confident that the project will be in construction within the next 12 months,” said Nick Mascia, community development director for the city. “But nothing final has been submitted at this time.”
UPS purchased the property because it has outgrown its current 40,000-square foot warehouse at 10609 W. Goshen Ave. in Visalia. Nationally, UPS is seeing historic growth. Earnings for the third quarter of 2018 were up more than 20% over last year with U.S. revenue up 8.1% to $10.4 billion. Since 2000, UPS’s quarterly dividend has more than quadrupled. Those numbers should go up next year as UPS announced it will increase shipping rates for UPS Ground, UPS Air and International services, as well as UPS Air Freight rates within and between the U.S., Canada and Puerto Rico, by an average net 4.9% as of Dec. 26, 2018. For additional information on rates visit www.rates.ups.com.
UPS expects to average 31 million package deliveries per day for the holiday shopping season from Thanksgiving through the holiday returns during the first week of January. The company has improved its delivery time as well.
ShipMatrix, a company tracking the efficiency of the shipping industry, reported that UPS delivered 98.3% of its packages during the week of Thanksgiving, an improvement of 105 over the previous year. Part of the improvement, according to ShipMatrix, is its dedication to adding 5 million square feet of capacity at its facilities and due to investments in new technology.
Ahead of the peak holiday season, UPS rolled out approximately 20 new technologies including synchronizing volume demands with capacity, using artificial intelligence to coordinate tractor-trailer movements to avoid bottlenecks at hubs, analytic tools to forecast volumes within each facility, sorting technology that cuts down on training time and an upgrade to UPS’s On-Road Integrated Optimization and Navigation (ORION) providing drivers with better accuracy and precision.
Visalia’s Industrial Park continues to be an ideal location for warehousing, shipping centers, and fulfillment centers. Visalia’s central location between the State’s industrial hubs in Southern California and Bay Area, as well as the availability of a labor force and industrial-zoned land make the city, and the Valley, attractive to potential manufacturers, distributors and packaging services. In its marketing materials, Visalia claims companies can efficiently distribute to 99% of California overnight, reaching a population of more than 35 million within just a 300-mile radius.
Visalia Industrial Park recently announced that power tool maker Hilti Inc. has leased a new 166,000 square foot warehouse. The new warehouse is Hilti’s largest distribution center in the United States.
“Visalia has been good to the company,” said Robert Rodriguez, regional manager for Hilti. “Employees in Visalia have a strong ethic and are not afraid of hard work.”
Industrial Park tenants are also benefiting from an improved interchange at Highway 99 and Betty Drive. The $36 million project realigned the intersection to reduce congestion and improve safety and the heavily traveled intersection. The interchange was funded in part by Measure R, a half-cent transportation tax approved by Tulare County voters in 2006.