Report Showcases “FedEx Effect” on Global Economy as Company Increases Flexibility and Efficiency of Operations
24 Oktober 2024 - 4:00PM
Business Wire
FedEx delivered more than $85 billion in direct
impact and $39 billion in indirect impact to the global economy in
fiscal year 2024
FedEx Corp. (NYSE: FDX) today released its annual economic
impact report, analyzing the company’s worldwide network and role
in building prosperity in local communities during its 2024 fiscal
year (FY 2024)1. Produced in consultation with Dun & Bradstreet
(NYSE: DNB), a leading provider of business decisioning data and
analytics, the study underscores the ‘FedEx Effect’—the impact
FedEx has on accelerating the flow of goods and ideas that generate
economic growth across countries and regions.
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“At FedEx, we have a vision to make supply chains smarter for
everyone by leveraging advanced data and technology to better serve
our customers and their customers, thereby extending our reach and
impact,” said Raj Subramaniam, president and CEO, FedEx
Corporation. “The ‘FedEx Effect’ represents our relentless
commitment to excellence, economic growth, and the communities
where we live and work.”
The report reveals that FedEx contributed more than $85 billion
in direct impact to the global economy in FY 2024, accounting for
approximately 0.1% of the world’s total net economic output2. This
activity reflects the scale of the FedEx network and the company’s
ongoing efforts to enhance its innovative services that help
businesses of all sizes connect with customers and strengthen their
operations. The company has the most extensive transportation
network in the world, providing service to more than 220 countries
and territories. Additionally, FedEx employs more than 500,000
people across more than 5,000 facilities and moves an average of 16
million packages per day.
FedEx’s contributions to global net economic output—including
its revenues, wages, and capital expenditures—create additional
economic activity across its business network. This indirect impact
activity helps drive production increases across industries due to
the company’s relationships within and across sectors of the global
economy. In FY 2024, FedEx indirectly contributed an estimated $39
billion to global net economic output3, including making its
largest indirect contribution to the global Transportation,
Storage, and Warehousing sector4.
Key highlights of the FedEx Economic Impact Report include:
- Trade: FedEx’s continued
support of trade policies that facilitate greater market access
advances the company’s purpose of connecting people and
possibilities across the globe. According to a recent Morning
Consult survey commissioned by FedEx, nearly all U.S. business
decision-makers surveyed agree that global trade stimulates
economic growth, creates jobs and opportunities, and fosters
innovation.
- Operational enhancements:
FedEx continued to improve its network in FY 2024, notably through
the ongoing optimization of its surface network into a single
transportation system. Other ongoing investments were completed,
including a hub facility at Dubai World Central Airport and a
secondary sort facility at Memphis International Airport. The
company also added advanced sorting equipment to existing
facilities throughout its network, as well as additional warehouse
capacity.
- Sustainability: The company
continues to invest in renewable energy to power its facilities,
electrification of its pickup and delivery fleet, and carbon
sequestration research to advance natural carbon capture solutions
for adoption across the transportation industry. In FY 2024, FedEx
added electric vehicles (EVs), including EVs and zero-tailpipe
emission motorcycles in Brazil and dozens of EVs across new markets
like Canada, Chile, Spain, the UK, the Netherlands, and the
UAE.
- Small businesses: FedEx
helps small- and medium-sized businesses (SAMs) accelerate their
growth and extend their global reach, supporting local job creation
and economic activity. In addition to its SAM-specific portfolio
solutions, the company connects customers with subject matter
experts from FedEx and companies from other industries for
solution-focused discussions that can bring value to their
businesses through a third-party platform called the ‘SME Connect’
series.
- Supply chain: In calendar
year 2023, 90% of the suppliers FedEx contracted with were small
businesses. The company’s spending with suppliers during this
period supported approximately 400,000 jobs at small businesses
around the world.
- Giving: FedEx supports the
local communities it serves through FedEx Cares, which promotes
charitable giving, employee volunteer efforts, and in-kind shipping
services around the world. In FY 2024, the company’s contributed
more than $55 million through its direct partnerships with NGOs and
nonprofits.
United States impact
FedEx serves every U.S. ZIP code, connecting communities to the
worldwide marketplace. With approximately 370,000 U.S. employees in
FY 2024, FedEx is one of the largest employers in the country and
is proud to support a diverse, equitable and inclusive workplace
full of opportunity where 57% of U.S. employees identify as
minorities.
The study found that in FY 2024, FedEx directly contributed an
estimated 6.7% of net economic output to the U.S. Transportation
and Warehousing sector5 and indirectly contributed $8.1 billion to
net output across the U.S. economy.
The company’s operations are uniquely positioned to help
customers adapt to changing economic conditions and trade patterns.
FedEx operates two major air hubs in Memphis and Indianapolis to
provide capacity for domestic and international air shipments and
has dedicated international air gateways in Alaska and Miami to
facilitate global trade. FedEx packages are delivered by
FedEx-employed couriers as well as employees of nearly 6,000
independent service providers that provide transportation, pickup,
and delivery services on the company’s behalf. The average annual
revenue for these businesses is $2.1 million.
Read the full FY 2024 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 $88 billion, the company
offers integrated business solutions utilizing its flexible,
efficient, and intelligent global network. 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) 2024 is defined as June
1, 2023-May 31, 2024.
2 The world total net economic output for
FY24 is estimated based on overall and industry value added sourced
from UNCTAD (United Nations Conference on Trade and Development)
and using economic growth projections published by the IMF
(International Monetary Fund).
3 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.
4 As defined by the United Nations
Conference on Trade and Development (UNCTAD).
5 As defined by the U.S. Bureau of
Economic Analysis.
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