Report Highlights FedEx Economic Impact as Company Celebrates50 Years of Operations
Company delivered more than $80 billion in direct impact to theglobal economy in fiscal year 2023
Memphis, Tenn., October 30, 2023 – FedEx Corp. (NYSE: FDX)today released its annual economic impact report, analyzing thecompany’s worldwide network and role in fueling innovation duringits 2023 fiscal year (FY 2023).1 Produced in consultation withDun & Bradstreet (NYSE: DNB), a leading provider of businessdecisioning data and analytics, the study demonstrates the positiveimpact 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-commercerevolution over five decades by transforming the way businessesexchange goods, services, and ideas — all while continuouslyexceeding the evolving needs of our customers,” said RajSubramaniam, President and CEO, FedEx Corporation. “This reportunderscores our significant contributions to the economy anddedication to making a positive difference in the communities wherewe operate.”
The report reveals that FedEx contributed more than $80 billionin direct impact to the global economy in FY 2023, despite recenteconomic pressures. This activity reflects the scale of the networkFedEx has developed and the company’s ongoing efforts to enhanceits innovative services that help businesses of all sizes connectwith customers and strengthen their operations.
FedEx celebrated 50 years of operations on April 17, 2023. Thecompany 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 than5,000 facilities and moves approximately 14.5 million packages perday.
Key highlights of the FedEx Economic Impact Reportinclude:
Indirect impact: FedEx indirectly contributed an estimated $35billion to global net economic output2 in FY 2023.
Supply chain: FedEx contracted with roughly 100,000 suppliers inFY 2023 — 90% of which were small businesses. An analysis ofspending with roughly 73,000 unique suppliers over calendar year2022 revealed that the company’s spending with these suppliersduring that time supported 1.1 million jobs.
Operational enhancements: FedEx continued to improve its networkand services in FY 2023. This included opening new facilitiesacross a range of locations, including Ireland, Poland, Australia,and South Korea; enhancing many existing facilities by introducingadvanced sorting e, adding warehouse capacity, andexpanding airport ramp and road truck operations; and implementingoperational efficiencies in markets like Alaska.
Trade: FedEx continued supporting trade policies that offergreater market access and efficiency for its customers. Thisincluded advocating in favor of provisions like de minimisallowances, which enable individuals and businesses of all sizes toimport low-value goods without duties and taxes.
Small businesses: FedEx supported small business growth — amajor driver of economic activity globally — by providing smallbusiness resource hubs in certain regions and tailored logisticsand customs services aimed at helping unlock new markets. Thecompany also awarded small business grants to 77 companies aroundthe world during FY 2023.
Sustainability: In FY 2023, FedEx added more electric vehicles(EVs) to its pickup and delivery fleet around the world andcontinued to make its facilities more sustainable and energyefficient. The company also invested in third-party initiatives,including research at the Yale Center for Carbon Capture and ThirdDerivative, RMI’s global climate technology accelerator.
Giving: FedEx supported local communities through volunteeractivities, in-kind shipping, and donations totaling $58.6 millionto its direct partnerships with NGOs and nonprofits in FY 2023. Thecompany also completed its 50 by 50 campaign — a four-yearinitiative designed to positively impact 50 million people aroundthe world by the company’s 50th birthday.
United States impact
FedEx delivers to every U.S. ZIP code through its extensive networkmade up of roughly 4,800 facilities, as well as more than 7,000independent service providers. With approximately 370,000 U.S.employees in FY 2023, FedEx is one of the largest employers in thecountry and is proud to support an inclusive, diverse, ande workplace where 61% of U.S. employees identify asminorities.
The study found that in FY 2023, FedEx directly contributed anestimated 8.2% of net economic output to the U.S. Transportationand Warehousing sector3 and indirectly contributed $8.7billion to net output across the U.S. economy. However, the FedExEffect extends beyond the company’s contributions to economicgrowth and employment.
For 50 years, FedEx has worked to improve the prosperity andhealth of the communities it serves. For example, team membersacross the U.S., as well as Canada, Chile, and Puerto Rico,volunteered in FY 2023 to provide more than 8,400 pairs of shoesand 18,500 winter coats, funded by FedEx, to children at 70 schoolsin collaboration with nonprofit Operation Warm. Additionally, FedExcontinued working with federal, state, and local governments toprovide services that help with their day-to-day operations, aswell as during crises, like when the company transported babyformula for Operation Fly Formula in 2022.
Read the full FY 2023 FedEx Global Economic Impact Report andexplore the FedEx Effect in communities and regions around theworld at fedex.com/economicimpact.
About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwidewith a broad portfolio of transportation, e-commerce and businessservices. With annual revenue of nearly $90 billion, the companyoffers integrated business solutions through operating companiescompeting collectively, operating collaboratively and innovatingdigitally as one FedEx. Consistently ranked among the world’s mostadmired and trusted employers, FedEx inspires its more than 500,000employees to remain focused on safety, the highest ethical andprofessional standards and the needs of their customers andcommunities. FedEx is committed to connecting people andpossibilities around the world responsibly and resourcefully, witha goal to achieve carbon-neutral operations by 2040. To learn more,please visit fedex.com/about.
1Fiscal year (FY) 2023 is defined as June 1, 2022-May 31,2023.
2Net economic output is the difference between the value of totalor gross output and the cost of inputs such as energy, rawmaterials, and services. Also known as value added.
3As defined by the U.S. Bureau of Economic Analysis.