Quiver Quantitative - United Parcel Service (NYSE:UPS) has announced plans to acquire MNX Global Logistics, aiming to amplify its foothold in the healthcare products distribution sector. This strategic move comes in light of the increasing emphasis on medical supply chains, especially post the Covid-19 pandemic's onset. MNX, a time-sensitive logistics provider based in Long Beach, California with 21 global outlets, is positioned to significantly enhance UPS's service offerings, especially for clients in healthcare and related sectors. Notably, MNX's capabilities will boost UPS's healthcare segment and its clinical-trial logistics subsidiary, Marken.
Upon its completion by year-end, the acquisition is expected to further solidify UPS's operations, building on the healthcare logistics endeavors UPS began in 2020. This separate operating unit, known as UPS Healthcare, was integral in the distribution of initial Covid-19 vaccines in 2021, emphasizing the intricate needs of the pharmaceutical and medical devices industries. Predictions by Market Research Future suggest that by 2032, the healthcare logistics sector will witness a more than two-fold increase, amassing about $179 billion in sales.
This booming demand, driven by global medical advancements and the requirements of aging demographics, has incited heightened investment from various logistics entities, shipping corporations, and trucking businesses. The goal is to bolster infrastructures like warehouses and refrigerated containers to adeptly manage delicate equipment needs.
Kuehne + Nagel International, a renowned freight forwarder, recently exemplified this trend by establishing a 400,000-square-foot distribution hub at the Dallas-Fort Worth International Airport. This facility is dedicated to pharmaceuticals, medical apparatus, and other health-related products, further showcasing the industry's rapid evolution.
This article was originally published on Quiver Quantitative