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Report Showcases "FedEx Effect" on Global Economy as Company Increases Flexibility and Efficiency of Operations

Business Wire

Thu, Oct 24, 2024, 7:00 AM 6 min read

MEMPHIS, Tenn., October 24, 2024--(BUSINESS WIRE)--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.

"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.

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¹Fiscal year (FY) 2024 is defined as June 1, 2023-May 31, 2024.

²The 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).

³Net 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.

⁴As 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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