In releasing its third quarter earnings, global parcel carrier UPS reported cross border European shipments were up 10% against an overall 4.6% increase in global package movements. Earlier this month, the European Commission reported that the regional European economies with the strongest growth over the year to August were the Czech Republic, Romania, Slovakia and Poland with gains of between 3% and 6%. Sweden, Greece, Ireland and Italy suffered the largest production losses with falls of between 8% and 5%. Production is shifting, at the margin, to where it is most profitably conducted and then shipped to where the customers are living. In a good sign for a more robust future, Europe's production base is evolving from one dictated by national borders to one that is taking greater advantage of the significant diversity in regional cost structures and the logistics efficiencies offered by groups like UPS.
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