FedEx Impact: $20bn additional economic output
With nearly 550,000 employees, FedEx moved an average of 16mn shipments each day through 5,000 facilities in FY2022.
Business activities by FedEx create an estimated $20 billion in additional net economic output around the world, according to the FedEx Effect study conducted in consultation with Dun & Bradstreet, a global provider of business decisioning data and analytics.
"FedEx also recognises that economic growth and sustainability must go hand in hand for the future of our people and planet," says Raj Subramaniam, President & CEO,
FedEx Corporation. "That's why we are working every day to help create a more
sustainable future. We've committed to make our operations carbon-neutral by 2040 and have pledged an initial $2 billion in investments to make our own operations more sustainable and to fund innovations that can help address the transportation industry's most significant emissions challenges."
The report found that FedEx played an integral role in helping businesses recover from the pandemic while overcoming strained supply chains and economic challenges. "With nearly 550,000 employees worldwide, FedEx moved an average of 16 million shipments each day through its 5,000 facilities in FY 2022. The company's network optimization and investments improved efficiency and capacity for FedEx customers."
Measuring the FedEx Effect
FedEx worked with 360,000 suppliers globally who employed more than 16.5 million individuals. These businesses, many of which are small businesses, created significant economic activity within their local or regional markets and had a combined annual revenue of $700 billion.
FedEx global economic activity supported 193,000 additional jobs beyond the FedEx worldwide employee base in FY2022, which is 20,000 more jobs than FedEx indirectly supported in FY 2021.
Small businesses made up 88 percent of the FedEx supply chain, and more than half of the FedEx supply chain spend in each region went to small businesses — which collectively supported roughly 810,000 small business jobs around the world.
In FY 2022, FedEx invested $6.8 billion —a 15 percent increase over FY 2021 — in facility improvements, network optimisation and infrastructure improvements, which correlated to direct economic growth in the respective markets.
Impact across Asia Pacific, Middle East and Africa (AMEA)
"Through our continuous commitment to the region we have helped support hundreds of thousands of businesses and communities still recovering from the pandemic," says Kawal Preet, regional president, Asia Pacific, Middle East, and Africa (AMEA), FedEx Express. "Our investments in our hubs in Guangzhou, Osaka and Dubai enable us to meet demand and optimise routes for our customers as supply chains fluctuate. Our new and improved facilities like the Clark gateway facility in the Philippines, as well as the consolidation at our Delhi hub creates greater access to emerging markets and increases efficiency."
FedEx recently established a direct commercial presence in Cambodia as well as in Saudi Arabia, Egypt and Jordan. "In India, the company set up a new $2 million international clearance gateway at Bangalore airport and consolidated and expanded its multi-million dollar hub at Delhi International airport."
The report shows that FedEx donated over $86 million globally in FY 2022 to charities and local non-profits in the communities where its team members live and work.