FedEx pack an economic punch

Image Source: FedEx

FedEx Corporation has released its annual Economic Impact Report, a study that assesses the company’s worldwide network and its role in driving innovation over the course of the 2023 fiscal year (defined by FedEx as running from June 1 2022 to May 31 2023).

The report is used to demonstrate what the corporation describes as the ‘FedEx Effect’: namely the positive impact FedEx has on individuals and communities around the world.

“FedEx has helped shape global supply chains and the e-commerce revolution over five decades by transforming the way businesses exchange goods, services, and ideas – all while continuously exceeding the evolving needs of our customers,” announced Raj Subramaniam, president and chief executive of FedEx Corporation.

“This report underscores our significant contributions to the economy and dedication to making a positive difference in the communities where we operate.”

According to the report, FedEx contributed more than $80bn in direct impact to the global economy in its 2023 financial year, despite recent economic pressures.

This impact derived from the huge of FedEx’s global network and the company’s efforts to help businesses of all sizes connect with customers and strengthen their operations, it said.

Additionally, FedEx indirectly contributed an estimated $35 billion to global net economic output in the 2023 financial year. Net economic output is defined as the difference between the value of total or gross output and the cost of inputs such as energy, raw materials and services.

In Europe alone, the company’s impact included $2.4 billion in indirect contributions to the regional economy in the 2023 financial year.

FedEx Express serves more than 45 countries in Europe, with air hubs at Charles de Gaulle Airport in Paris, France and Liege Airport in Belgium. The company also operates 28 road hubs that reach across the continent and serve more than 700 pick-up and delivery stations that handle 1.3 million international shipments per week.

FedEx Express employed more than 5,000 people in the area around its Charles de Gaulle Airport hub during the financial year and is estimated to contribute nearly €1.9 billion a year to the local economy.

FedEx celebrated 50 years of operations on April 17 this year. It now claims the most extensive transportation network in the world, providing services to more than 220 countries and territories.

Additionally, FedEx employs over 500,000 people across more than 5,000 facilities and moves approximately 14.5m packages per day.

FedEx contracted with roughly 100,000 suppliers in the 2023 financial year, 90% of which were small businesses.

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