UPS and the Mechanical Marvel

Now, I’ve seen a good many things in my time, spent a good many years watchin’ fortunes rise and fall like the Mississippi in springtime. And let me tell you, this here story of UPS, it’s a curious one. They’re facin’ headwinds, they are—competition from that Amazon feller, and a general air of folks spendin’ less on things they don’t absolutely need. But UPS, they ain’t just sittin’ there wringin’ their hands. They’re fightin’ back… with machines. Seems the age of the horse and buggy is well and truly past, even for deliverin’ packages.

They’re shrinkin’ their operation, see? Downsizing, they call it. Closin’ up old facilities, the kind with leaky roofs and maintenance bills that’d make a banker weep. Smart move, that. Get rid of the things that cost you money, and you’ve got a bit more left over for… well, for more important things. Like robots. Seems they’re bettin’ big on automation, and a body might wonder why anyone’d trust a machine to handle a package when a good, honest man could do it. But times change, don’t they?

They’ve got these contraptions now, pickin’ and placin’ packages, unloadin’ trucks, movin’ things around like a well-oiled clock. Fifty-seven percent of their packages went through these automated places last year, and they reckon it’ll be closer to sixty-eight percent by 2026. A body can’t help but wonder if those machines are plottin’ somethin’, but that’s just my suspicious nature. It’s a marvel, truly, to see all this happen. Though I’d wager a good mule could still outpace ’em on a muddy road.

Now, this automation ain’t cheap, mind you. It costs a pretty penny to get all these machines up and runnin’. But UPS claims it’s cuttin’ their costs by a good twenty-eight percent. Twenty-eight percent! That’s enough to make a Wall Street feller drool. And it explains why they’re sendin’ folks home. Forty-eight thousand positions gone last year, and another thirty thousand planned for this one. Progress, they call it. I call it a sign of the times. Though I reckon a good many of those folks could use a bit of luck and a steady job.

They’re addin’ another twenty-four automated facilities next year, so the trend is clear. More machines, fewer hands. It’s a curious thing, this whole business of makin’ things easier. Seems like it just creates new problems, but that’s a story for another day.

Now, some folks are askin’ if this makes UPS stock a good buy. Well, their revenue is down, what with deliberately handlin’ fewer Amazon packages. But they’re hopin’ to make up for it with lower costs and bigger profits. Analysts are predictin’ adjusted earnings of $7.12 a share in 2026, which puts the stock at a price-to-earnings ratio of around 15. Seems reasonable enough, if you’re a gamblin’ man. There’s always risk, of course. The world is full of uncertainties. But if you believe in machines and the power of automation, this might be a bet worth takin’. I’ve seen enough wild schemes in my time to know that even the best ideas can go belly up. But a body can always hope, can’t they?

2026-01-29 19:32

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