FedEx delivers $80bn direct impact to global economy in FY23
FedEx Express indirectly contributed $1 billion to Asia Pacific, Middle East and Africa’s critical manufacturing sector
NYSE-listed FedEx contributed more than $80 billion in direct impact to the global economy in FY2023 (June 1, 2022-May 31, 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," says the annual economic impact report produced in consultation with Dun & Bradstreet.
The study demonstrates the positive impact FedEx has on individuals and communities around the globe — otherwise known as the FedEx Effect.
"In FY2023, direct contributions from FedEx accounted for approximately one percent of overall net economic output in the $8.8 trillion transportation, storage and communications sector as defined by the United Nations Conference on Trade and Development (UNCTAD).
"Despite several economic pressures during FY2023, total worldwide net economic output grew to an estimated $103 trillion for the fiscal year, up from $92 trillion the previous year. Direct contributions from FedEx represented 0.09% of that total — a considerable amount for a single company."
The study found that with its extensive network, FedEx Express contributed 0.3 percent of net economic output in the transportation, storage, and communications sector in Asia Pacific, Middle East and Africa (AMEA) during FY2023. "Across all sectors of the AMEA economy, FedEx Express contributed 0.02 percent of total net economic output, which grew approximately six percent in FY2023 to $44 trillion."
The company’s impact also included $2.7 billion in indirect contributions to the regional economy in FY2023, the report added. "Among specific industries, FedEx Express indirectly contributed $1 billion to AMEA’s critical manufacturing sector, worth an estimated $9 trillion. The company’s indirect contribution to the transportation, storage, and communications sectors was estimated to be $772 million."
Kami Viswanathan, President, Middle East, Indian subcontinent and Africa, FedEx Express says: "Sub-Saharan Africa is a rapidly emerging region in global trade, and we're committed to fueling this growth. Our aim is to create more jobs and enhance economic opportunities across the region. Our main focus is on delivering exceptional customer service and expanding access to the benefits of global trade. We believe that fostering a connected and sustainable future will strengthen the FedEx Effect for everyone in the region."
CSR and sustainability impact
FedEx donated $58.6 million globally in FY2023 to charities and local non-profits in the communities where its team members live and work, says the report. "In AMEA, this includes environmental programmes, childhood education, entrepreneurship, and healthcare initiatives to help improve lives. In April 2023, more than 1,000 FedEx volunteers and their families across 22 AMEA markets participated in the company’s 50 Days of Caring initiative."
In South Africa, the Lunch Box Fund and Breard Foundation were some of the organisations supported by FedEx to enable their socio-economic efforts of empowering communities, the report added.
FedEx also employs over 500,000 people across more than 5,000 facilities and moves approximately 14.5 million packages per day.