(Photo Credit: UPS)
It has been quite a week for exciting tax reform news. Manufacturers like ExxonMobil, Pfizer, Lockheed Martin and Honeywell International announced a combined total of more than $62 billion in investments in the United States in the coming years sparked by the Tax Cuts and Jobs Act. United Parcel Service (UPS) announced on Thursday that it plans to invest more than $12 billion into the United States in the coming years as a result of the recently passed tax reform law:
UPS today announced more than $12 billion in investments to expand the company’s Smart Logistics Network, significantly increase pension funding and position the company to further enhance share owner value.
“This $12 billion investment program is an outgrowth of the opportunity for tax savings created by the Tax and Jobs Act,” said David Abney, UPS chairman and chief executive officer. “We will increase network investments and accelerate pension funding to strengthen the company for the long term, so that we maximize the benefit to our global customers, employees and share owners.”
“We applaud President Trump and Congress for their bold action to improve the U.S. economy,” Abney said. “Our investments will create new jobs, secure existing jobs and expand opportunities for our people…tax reform is a tremendous catalyst.”
UPS, which employs nearly 434,000 people, said that a portion of that investment will go toward purchasing new vehicles and aircraft and renovating and modernizing UPS’s facilities and technology platforms. In a separate release Thursday, UPS detailed plans to buy 18 new Boeing aircraft to support rapid growth in its U.S. and international air shipments:
UPS today announced it has ordered 14 Boeing 747-8 cargo jets and four new Boeing 767 aircraft to provide additional capacity in response to accelerating demand for the company’s air services. All of the new aircraft will be added to the existing fleet, and no existing aircraft are being replaced…
In addition to growing customer demand for express services, recent U.S. tax reform legislation is enabling UPS to utilize tax savings to significantly increase capital investments and to make them earlier than previously planned.
In addition to the capital investments, UPS also made a $5 billion contribution to employees’ pension plans, adding up to about $13,000 per participant.
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