The supply chain and logistics company, DHL is planning to invest $150 million to expand its distribution network of medical devices and pharmaceutical supplies by 40%.
The investment will cover new buildings and technology in addition to the expansion of existing operations. DHL will invest in markets located in California, Indiana, North Carolina, Tennessee, Pennsylvania and Virginia.
The logistics market for pharmaceutical and medical products is expected to grow annually at a rate of 4.5% from 2019 to 2022. The market is highly fragmented, the report said, driving logistics players to invest in temperature-controlled supply chains and specialized facilities to gain a greater share of the growing pie.
DHL boasts myriad services in the life sciences sector, including temperature-controlled air and ocean freight, warehousing and end-to-end supply chain management services. In fact, life sciences is the fastest growing sector at DHL Supply Chain. The unit accounts for 10% of its business in North America and is growing at 15% annually.
DHL Supply Chain is investing $150 million to sustain or even increase the growth rate, as competitor companies like UPS and FedEx are also investing in medical supply chains.