UPS STUDY FINDS PHILIPPINES’ INTRA-ASIA TRADE VALUE COULD TRIPLE BY 2030

MANILA, Philippines, March 2022 – Trade between the Philippines and 11 other Asian markets could triple by 2030, according to an industry study released by UPS. Titled, Clearing the Runway for Intra-Asia Trade, the study sheds light on trade growth drivers, potential headwinds, and multistakeholder action required to unlock the 2030 opportunity. 

Search UPS Intra-Asia Study to find the full report.

Trade in just 12 key markets, referred to in this study as the Asia 12, accounts for 88% of intra-Asia trade today, and these markets are poised to consolidate this position further. UPS found that trade within these 12 markets could more than double in value from USD 6.4 trillion in 2020 to USD 13.5 trillion in 2030. 

For the Philippines in particular, the country has an opportunity to build on rapid growth in the previous decade – particularly in the manufacturing sector – which could see trade with the Asia 12 more than triple from USD 113 billion in 2020 to USD 393 billion in 2030. There are also significant opportunities for Filipino businesses in areas such as digitalization, building supply chain resilience and multilateral cooperation in international trade. 

Intra-Asia trade holds incredible potential over the coming decade, built off the immense economic success that key regional economies have accomplished in recent years. Through the strength of UPS’s global network and extensive brokerage expertise, the company has been helping Asian governments, industry partners, and customers navigate global trade over the last five decades. This report combines that expertise with fresh insights to explore opportunities and challenges in intra-Asia trade for the next ten years and beyond.

Manufacturing segment set to drive the Philippines’ intra-Asia trade growth

Four product segments – retail, industrial manufacturing and automotive (IM&A), high-tech, and healthcare – accounted for 75% of the Philippines’ intra-Asia trade in 2020 and are expected to fuel the growth. The IM&A segment stands to be the largest by value in 2030, more than trebling from 2020 levels as the country aims to serve as a global and regional hub for the automotive and electronics sectors.

Meanwhile, trade in the high-tech segment, which constituted 41% of the country’s intra-Asia trade in 2020, could more than double in value, riding the wave of digitalization which will create significant demand in this segment across Asia. 

Philippine-based businesses can plan for both headwinds and opportunities by diversifying supply chains into resilient trade routes and targeting high-value and high-growth trade routes, such as IM&A, healthcare, and retail trade with economies like Japan, as well in the high-tech segment with Hong Kong and Vietnam.

Filipino MSMEs need to digitalize

While intra-Asia trade holds significant potential, there exist a number of barriers that, unless addressed, may stagnate trade within the Asia 12. Filipino businesses surveyed indicated tariffs and other punitive measures as the top barrier, followed by shortage of labor and skills in the logistics industry, and lack of harmonization of standards.

In addition, there is significant room to digitalize the Philippines’ logistics network, with many companies – including micro, small and medium-sized enterprises (MSMEs) – still relying on costly and time-consuming paper-based processes. While the COVID-19 pandemic has accelerated adoption of digital technologies within the Philippines, adoption of digital payments and digital supply chain tools has fallen behind.

“MSMEs play a vital role in both the manufacturing and employment economies of the Philippines – it’s in all our interests to do what we can to build a thriving small business community and the rapid growth of e-commerce is a huge opportunity to do that,” said Russell Reed, managing director UPS Philippines.

“Our role at UPS is to continue providing the support and solutions businesses need in areas such as trade compliance, mitigating customs delays and improving customer experience. It’s also about making supply chains more efficient and easier to manage so businesses can grow in a way that keeps them profitable, successful and sustainable for the long term.”

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About UPS 

UPS is one of the world’s largest companies, with 2022 revenue of $100.3 billion, and provides a broad range of integrated logistics solutions for customers in more than 220 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s more than 500,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. UPS also takes an unwavering stance in support of diversity, equity and inclusion. More information can be found at www.ups.com, about.ups.com and www.investors.ups.com.

THE UPSer WHOSE JOB IS TO KEEP PUSHING BACK

Manila, Philippines — It is often said that the difference between a good colleague and a great colleague is the willingness to go above and beyond the call of duty. If that’s the case then Mang Boy Salas – one of the longest-serving employees at UPS’s Clark hub in the Philippines – is a great guy to have on your team.

Since joining UPS in 2002, Mang Boy has built a reputation as one of the most accomplished members of the company’s ground crew – and when it comes to his knowledge of one particular skill, he’s recognized as one of the best in the business.

Humble Beginnings

Mang Boy was born in Baliuag, Bulacan to a poor family of eight children, the older of two boys. His father passed away when Mang Boy was young but before he left, he urged Mang Boy to continue with his studies. The young son didn’t follow his father’s dying wish but looked instead for work to help his younger siblings complete their education. 

At 11 years old, he started shuttling regularly to and from Bulacan to Manila to do odd jobs, including working in a restaurant owned by his uncle. One day, he heard there was work available at Manila International Airport (MIA), where he eventually became a baggage loader. He did well and when one of the airport’s senior managers moved over to the then newly-opened UPS facility in Clark Pampanga, he asked Mang Boy to join him as one of the first employees. 

He was thrilled with the new job. It offered additional benefits on top of a basic salary and it meant he no longer had to take odd jobs on the side to make ends meet. 

Thanks to Mang Boy’s help and hard work, all seven of his siblings were able to finish college.

Knowing how to push back

It is now 2022, and Mang Boy is celebrating his twentieth year at UPS Clark. He has risen steadily through the ranks and established himself as the go-to guy for one of UPS’s particularly important ground operations tasks. 

“Push back” is the movement of an aircraft from a nose-in parking position to a taxi-ready position using specialized ground equipment. To the untrained eye it looks pretty simple, but it’s a delicate operation. Any error could compromise the aircraft, its passengers and cargo, as well as put the lives of the ground crew at risk. 

“It’s the final step in the loading procedure,” Mang Boy said. “Your maneuver should be calculated, the speed of movement precise.” 

He’s more than happy to share his expertise and experience with his team. New recruits who undergo further training in the United States have returned stressing how Mang Boy’s lessons helped them pass the stringent training requirements. 

Work ethic, reliability, legacy

“When people ask me why I’ve decided to stay at UPS so long, it’s because UPS is a company that has always rewarded diligence, expertise and loyalty,” said Mang Boy. 

Angelo Yutuc, UPS Clark Hub manager, said, “After 20 years, we’re still impressed by Mang Boy’s work ethic, and amazed by his outstanding results day in and day out; he’s one of the most reliable employees we’ve ever had.  

“All of us, from management to ground crew, enjoy working with him. We really look forward to him sharing his expertise with the younger members of our team, which is important for the development of the group as a whole. For UPS, being able to retain top talent for the long term serves as an inspiration to the younger members of the team and shows that having a good work ethic is an important characteristic for every successful professional.”

UPS Philippines’ Managing Director Russell Reed described Mang Boy as one of the most valuable employees of the organization. “We are grateful to Mang Boy for always putting the interests of others ahead of his own. He embodies both the customer first and people-led principles that guide everything we do at UPS.”

Mang Boy hopes his younger colleagues will be able to draw as much joy and satisfaction in their job, and at UPS, as he has. These are his three top tips for how they can do it:

• “Deliver – on schedule and in good condition. The customer paid good money and they expect good service in return.”  

• “Come to work well-rested and be prepared for the day’s tasks. You’re handling equipment to maneuver a very expensive plane and its cargo, so your full focus needs to be on the job at hand.”

• “Stay humble; don’t be arrogant. ‘Pakikisama sa kapwa’ is always important but make sure to work for a company that treats its people in the right way.

Mang Boy says he will continue to remember and share his advice with others until he finally decides to hang up his UPS uniform for good. When that day comes, he says he’s looking forward to enjoying more of the finer things in life.

“When I retire, I'll spend time with my family and friends, eat out more often, exercise a lot, go biking with my children. Maybe a few shot-shots every now and then,” he adds, grinning. 

“And I’ll be very happy and contented seeing my colleagues and the company continue to succeed for many years to come.” 

About UPS

UPS (NYSE: UPS) is one of the world’s largest companies, with 2021 revenue of $97.3 billion, and provides a broad range of integrated logistics solutions for customers in more than 220 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s 534,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. UPS also takes an unwavering stance in support of diversity, equality, and inclusion. More information can be found at www.ups.com, about.ups.com and www.investors.ups.com.

UPS HOSTS FORUM ON SMALL BUSINESS GROWTH OPPORTUNITIES

CLARK, PAMPANGA, Philippines — UPS, in collaboration with Clark Investors and Locators Association (CILA) and the Philippine Exporters Confederation (PhilExport), hosted a conference on the international trade opportunities available to Filipino businesses looking to boost their future growth prospects.  

Titled “Taking businesses beyond the challenges of the pandemic”, the event took place in the Clark Freeport Zone and brought members of the small business (SMB) community together with trade and logistics experts to discuss the path forward as the world continues to look towards recovery. 

“Partnering with CILA and PhilExport gives us an opportunity to personally connect with our customers and the community to listen to the challenges they’re facing so we can provide the logistics solutions they’re telling us they need,” said Albert Sapaen Jr., UPS Philippines’ special projects and package planning manager. 

“The experience of the pandemic has shown why it is important for businesses of all sizes to build resilience and flexibility into their supply chains. Whether that’s in the form of digitalization and technology, e-commerce strategy, or exploring new trade lanes and customer bases, UPS is here to help the country’s SMBs remain agile, innovative and, ultimately, sustainable.”

The switch to digital
Since the outbreak of the pandemic, many businesses have turned to digital platforms to survive, in particular accelerating or expanding e-commerce strategies. Buying and selling online has never been more accessible, and a positive customer experience is vital when shopping online.

Digital visibility and tracking solutions such as UPS My Choice and My Choice for Business help with this from the perspective of both the buyer and the seller. UPS My Choice allows consumers the flexibility of rescheduling deliveries, even when the parcel is already in transit. My Choice for Business meanwhile allows businesses to manage outbound shipments, returns, claims and all connected tracking and delivery management tools within a real-time interactive dashboard. This allows for more accurate monitoring of the status of all deliveries which in turn makes proactive communication with customers easier.

Exploring the unexplored

A centerpiece of the effort to boost trade among Asia Pacific nations is the Regional Comprehensive Economic Partnership (RCEP), the biggest free-trade agreement ever signed. Once in force, it could benefit Filipino SMBs across a range of industry sectors, including in the form of cost savings via tariff reductions and simplified manufacturing and supply chain processes. 

However trade agreements on the scale of RCEP can be complicated, and success is not a given. SMBs should consider talking to solutions experts to uncover strategic opportunities to cut costs, improve efficiency, and streamline cross-border operations as ensuring that businesses are able to get the most out of the deal will require careful logistical planning.    

A Vital Partnership

“We understand that businesses are under a lot of pressure, so we ensure that the support we provide is comprehensive, crisis-responsive and flexible,” said Russell Reed, managing director of UPS Philippines.

“In the Philippines as in many countries across Asia Pacific, most businesses are small and medium-sized, but they contribute to more than half of the region’s economy. Because SMBs are the backbone of local economies and critical to local employment, we are committed to helping them optimize their supply chain strategies and capitalize on opportunities that will help them achieve their ambitions.”

The collaboration between UPS, CILA and PhilExport is born out of shared goals in building and empowering SMBs to achieve business growth, through the implementation of resilient technology-based solutions that spread the benefits as well as the risks among stakeholders. 

PhilExport is a non-profit umbrella organization of Philippine exporters while CILA assists member-locators at the Clark Freeport and Special Economic Zone to become globally competitive.

About UPS

UPS (NYSE: UPS) is one of the world’s largest companies, with 2021 revenue of $97.3 billion, and provides a broad range of integrated logistics solutions for customers in more than 220 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s 534,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. UPS also takes an unwavering stance in support of diversity, equality, and inclusion. More information can be found at www.ups.com, about.ups.com and www.investors.ups.com.

UPS OFFERS BOOST TO SMBs WITH LAUNCH OF ENHANCED SERVICES IN THE PHILIPPINES

MANILA, Philippines, Aug. 23, 2022 — UPS (NYSE: UPS), one of the world’s largest integrated logistics providers, has introduced new service enhancements in the Philippines to boost international trade prospects for many of the country’s small and medium-sized businesses (SMB).

The enhancement sees pickup times for export shipments and customer service bookings from the National Capital Region (NCR), Laguna and Batangas extended by up to one hour. 

Meanwhile coverage of UPS’s Worldwide Express Freight (WWEF) service – a guaranteed door-to-door express freight service which delivers heavy, palletized shipments to destinations worldwide in as little as one business day – has also been expanded to 129 more postal codes in the provinces of Bulacan, Pampanga, Laguna, Tarlac and Zambales. 

“When we talk to small business owners, they often tell us they wish they had more hours in a day; so we’re delighted to be able extend pickup cutoff times to give our SMB customers in these areas more time to increase the number of orders they can process on a daily basis,” said UPS Philippines Managing Director Russell Reed.

“Getting those orders delivered to customers on time is also vital. UPS Worldwide Express Freight is a guaranteed service that allows businesses to replenish inventory faster and reduce the risk of stock-outs thereby improving their customers’ experience. For manufacturers, they can rely on receiving critical inventory and replacement parts quickly to minimize costly downtime.” 

These enhanced services come as the Asian Development Bank raised its 2022 growth forecast for the Philippine economy to 6.5% from a previous 6% projection in July, following relaxed mobility restrictions in the country, increased vaccinations as well as a rebound in investment and household consumption. The growth is expected to trickle down to the rural countryside and across the provinces, cities and towns.

About UPS

UPS (NYSE: UPS) is one of the world’s largest companies, with 2021 revenue of $97.3 billion, and provides a broad range of integrated logistics solutions for customers in more than 220 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s 534,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. UPS also takes an unwavering stance in support of diversity, equality, and inclusion. More information can be found at www.ups.com, about.ups.com and www.investors.ups.com.