As Canada’s population ages, demand for new drugs and medical devices is on the rise. Total spending on drugs is forecasted to hit nearly $51-billion in 2024, up from $41-billion in 2020, according to data from the Canadian Institute for Health Information.
Those drugs and devices need to get to pharmacies, hospitals, doctors’ offices and other places where patients can access them.
That’s where carriers such as United Parcel Service come in. The delivery company has been expanding its special services for medical customers. By the end of this year, its 535,000 square feet facility in Burlington, Ont., will be entirely devoted to shipping health care products to handle the increasing demand for medical drugs and supplies.
Chris Dunn, vice-president of Canadian logistics for UPS Healthcare, said producers are demanding more shipping capacity, which is driving UPS to invest heavily in this part of its business – and the company needs to stay ahead of the curve.
“By the time a customer asks us for the space, usually they need it sooner than it would take us to build it,” he said.
“We’re monitoring the trends and trying to build ahead of the capacity need.”