New Global Report Demonstrates FedEx Economic Impact
FedEx Corp. (NYSE: FDX) released the findings from its 2022 report that analysed the company’s impact on the global economy with key regional and market-specific analyses from around the world at the conclusion of its 2022 fiscal year (FY 2022).
The report, produced in consultation with Dun & Bradstreet (NYSE: DNB), for the first time analysed the impact FedEx has on economies around the world. Over the past 49 years, FedEx has expanded its services to more than 220 countries and territories and invested in a global network enabling businesses of all sizes to access and grow the global economy.
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.
“All around the world, FedEx helped individuals, businesses, and communities emerge from the pandemic by moving goods and providing services that connect humankind and power the global economy,” said Raj Subramaniam, President and CEO, FedEx Corporation. “The report illustrates the ongoing and important work we do every day, including supporting small- and medium-sized businesses which are the backbone of our local communities. We call this, the ‘FedEx Effect.’”
Measuring the FedEx Effect:
The shipping and logistics company plays a role in fuelling innovation, creating, and supporting local jobs, as well as helping lift individuals and their communities regionally and in major markets around the world.
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 FY 2022, which is 20,000 more jobs than FedEx indirectly supported in FY 2021.
Small businesses made up 88% 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% increase over FY 2021—in facility improvements, network optimization and infrastructure improvements, which correlated to direct economic growth in the respective markets.
Europe Impact
FedEx Express now serves more than 45 countries and territories in Europe, including expanded service into emerging markets such as Hungary, Cyprus, Lithuania, and Estonia. Across the continent, FedEx Express employed approximately 50,000 individuals and supported an additional 23,000 jobs beyond its workforce in 2022. FedEx’s growth and activities indirectly contribute over $3 billion in economic output for Europe in FY 2022, a 13% increase over 2021. FedEx Express continued to increase capacity for shipping volumes through network and facility improvements and finalized its multi-year modernization of the Paris-CDG hub.
“Our growing presence across Europe and the completed modernization of our hub at the Paris-CDG airport will help our customers, both large and small, to connect intra-region and to the rest of the world with greater ease,” said Karen Reddington, Regional President, Europe, FedEx Express. “Our network and our team members supported businesses as the region emerged from the worst of the pandemic including nearly double-digit growth in shipment volumes to key international regions out of the new Paris-CDG hub.”
Giving Impact
The report shows how FedEx contributes to the communities where its team members live and work through charitable contributions and direct efforts to deliver a more sustainable future. In FY 2022, FedEx donated over $86 million to charities and local non-profits. The company also served as a critical conduit for food and aid deliveries and donations to Ukraine and Shanghai, among others. It also shows how the company is committed to connecting the world responsibly, through its stated goal of carbon-neutral operations by 2040 and pursuit of investments in renewable energy to power its operations.
