Report Highlights FedEx Economic Impact as Company Celebrates 50 Years of Operations
October 30 2023 - 9:00AM
Business Wire
Company delivered more than $80 billion in
direct impact to the global economy in fiscal year 2023
FedEx Corp. (NYSE: FDX) today released its annual economic
impact report, analyzing the company’s worldwide network and role
in fueling innovation during its 2023 fiscal year (FY 2023).1
Produced in consultation with Dun & Bradstreet (NYSE: DNB), a
leading provider of business decisioning data and analytics, the
study demonstrates the positive impact FedEx has on individuals and
communities around the globe — otherwise known as the ‘FedEx
Effect.’
“FedEx has helped shape global supply chains and the e-commerce
revolution over five decades by transforming the way businesses
exchange goods, services, and ideas — all while continuously
exceeding the evolving needs of our customers,” said Raj
Subramaniam, President and CEO, FedEx Corporation. “This report
underscores our significant contributions to the economy and
dedication to making a positive difference in the communities where
we operate.”
The report reveals that FedEx contributed more than $80 billion
in direct impact to the global economy in FY 2023, despite recent
economic pressures. This activity reflects the scale of the network
FedEx has developed and the company’s ongoing efforts to enhance
its innovative services that help businesses of all sizes connect
with customers and strengthen their operations.
FedEx celebrated 50 years of operations on April 17, 2023. The
company has the most extensive transportation network in the world,
providing service to more than 220 countries and territories.
Additionally, FedEx employs over 500,000 people across more than
5,000 facilities and moves approximately 14.5 million packages per
day.
Key highlights of the FedEx Economic Impact Report include:
- Indirect impact: FedEx indirectly
contributed an estimated $35 billion to global net economic output2
in FY 2023.
- Supply chain: FedEx contracted
with roughly 100,000 suppliers in FY 2023 — 90% of which were small
businesses. An analysis of spending with roughly 73,000 unique
suppliers over calendar year 2022 revealed that the company’s
spending with these suppliers during that time supported 1.1
million jobs.
- Operational enhancements: FedEx
continued to improve its network and services in FY 2023. This
included opening new facilities across a range of locations,
including Ireland, Poland, Australia, and South Korea; enhancing
many existing facilities by introducing advanced sorting equipment,
adding warehouse capacity, and expanding airport ramp and road
truck operations; and implementing operational efficiencies in
markets like Alaska.
- Trade: FedEx continued supporting
trade policies that offer greater market access and efficiency for
its customers. This included advocating in favor of provisions like
de minimis allowances, which enable individuals and businesses of
all sizes to import low-value goods without duties and taxes.
- Small businesses: FedEx supported
small business growth — a major driver of economic activity
globally — by providing small business resource hubs in certain
regions and tailored logistics and customs services aimed at
helping unlock new markets. The company also awarded small business
grants to 77 companies around the world during FY 2023.
- Sustainability: In FY 2023, FedEx
added more electric vehicles (EVs) to its pickup and delivery fleet
around the world and continued to make its facilities more
sustainable and energy efficient. The company also invested in
third-party initiatives, including research at the Yale Center for
Carbon Capture and Third Derivative, RMI’s global climate
technology accelerator.
- Giving: FedEx supported local
communities through volunteer activities, in-kind shipping, and
donations totaling $58.6 million to its direct partnerships with
NGOs and nonprofits in FY 2023. The company also completed its 50
by 50 campaign — a four-year initiative designed to positively
impact 50 million people around the world by the company’s 50th
birthday.
United States impact
FedEx delivers to every U.S. ZIP code through its extensive
network made up of roughly 4,800 facilities, as well as more than
7,000 independent service providers. With approximately 370,000
U.S. employees in FY 2023, FedEx is one of the largest employers in
the country and is proud to support an inclusive, diverse, and
equitable workplace where 61% of U.S. employees identify as
minorities.
The study found that in FY 2023, FedEx directly contributed an
estimated 8.2% of net economic output to the U.S. Transportation
and Warehousing sector3 and indirectly contributed $8.7 billion to
net output across the U.S. economy. However, the FedEx Effect
extends beyond the company’s contributions to economic growth and
employment.
For 50 years, FedEx has worked to improve the prosperity and
health of the communities it serves. For example, team members
across the U.S., as well as Canada, Chile, and Puerto Rico,
volunteered in FY 2023 to provide more than 8,400 pairs of shoes
and 18,500 winter coats, funded by FedEx, to children at 70 schools
in collaboration with nonprofit Operation Warm. Additionally, FedEx
continued working with federal, state, and local governments to
provide services that help with their day-to-day operations, as
well as during crises, like when the company transported baby
formula for Operation Fly Formula in 2022.
Read the full FY 2023 FedEx Global Economic Impact Report and
explore the FedEx Effect in communities and regions around the
world at fedex.com/economicimpact.
About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses
worldwide with a broad portfolio of transportation, e-commerce and
business services. With annual revenue of nearly $90 billion, the
company offers integrated business solutions through operating
companies competing collectively, operating collaboratively and
innovating digitally as one FedEx. Consistently ranked among the
world's most admired and trusted employers, FedEx inspires its more
than 500,000 employees to remain focused on safety, the highest
ethical and professional standards and the needs of their customers
and communities. FedEx is committed to connecting people and
possibilities around the world responsibly and resourcefully, with
a goal to achieve carbon-neutral operations by 2040. To learn more,
please visit fedex.com/about.
1 Fiscal year (FY) 2023 is defined as June 1, 2022-May 31, 2023.
2 Net economic output is the difference between the value of total
or gross output and the cost of inputs such as energy, raw
materials, and services. Also known as value added. 3 As defined by
the U.S. Bureau of Economic Analysis.
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