FedEx Announces An Additional $450 Million Investment in Memphis Hub 

Last week, FedEx announced that it would be adding an additional $450 million to its $1 billion+ investment in the FedEx Express World Hub in Memphis. The plan is to modernize the hub, which is located at the Memphis International Airport, so it can rely more on technology and automation. 

The project, which is scheduled to be completed in 2025, will include new sorting systems, the construction of a new bulk truckload building and an area to better handle larger shipments. All of these projects will support the staff of 11,000 who work at the facility.

According to an article by Commercial Appeal, the modernization project stemmed from “growing customer demand.” This trend that FedEx is experiencing aligns with a larger trend in the shipping industry that sees a boom in e-commerce driving significant growth in shipping. 

New initiatives like Amazon’s one-day shipping and UPS and FedEx’s Sunday deliveries mean that the demand for packages may surpass the speed in which workers can process shipments. That is why carriers like FedEx and UPS are investing significantly in automated technology. 

While spending more than $1 billion on new technology seems like a significant amount of money for a company who has been experiencing declines in their financial results, new technology should allow FedEx to compete with companies like Amazon who have been making automation a priority for many years.  

 

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