New Global Report Demonstrates FedEx Economic Impact
The company’s supply chain saw ripple effects around the world, with 360,000 direct suppliers supporting 16.5 million jobs
MEMPHIS, Tenn., November 30, 2022 /3BL Media/ - FedEx Corp. (NYSE: FDX) released the findings from its 2022 report that analyzed 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), a leading global provider of business decisioning data and analytics, for the first time analyzed 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 fueling 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.
The company’s presence in the United States spans from California to New York, Alaska to Florida with delivery services to every U.S. ZIP code and has a significant impact on the U.S. economy and jobs. In FY 2022, FedEx employed over 412,000 U.S. team members and contributed roughly 12% of the total output of the U.S. Transportation and Logistics sectors.
FedEx fleet and facility modernizations over the last year improved productivity and delivered network efficiencies that provided customers with better service. This business activity led to $8.5 billion worth of indirect economic growth in the U.S. economy and supported nearly 50,000 additional jobs beyond its employment base. For more information on FedEx’s state and local market impacts, view the full report here.
In April 2022, FedEx was named one of the 100 Best Companies to Work For by Great Place to Work® and Fortune magazine — the 15th year that FedEx has been included on this prestigious list.
“Over decades we’ve built the infrastructure — both physical and digital — to meet the needs of our customers and deliver to every community in the U.S.,” said Brie Carere, Executive Vice President and Chief Customer Officer, FedEx Corp. “As the country emerged from the pandemic, our network of facilities and team members provided customers with excellent service and supported economic growth and recovery.”
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.
Read the full FedEx Economic Impact Report and explore the FedEx Effect in communities and regions around the world at fedex.com/economicimpact.