By Raj Subramaniam, President & CEO FedEx Corporation
Originally published in FedEx's 2024 Global Economic Impact Report
NORTHAMPTON, MA / ACCESSWIRE / January 15, 2025 / FedEx has been transforming transportation and logistics services for more than 50 years, advancing our purpose to connect people and possibilities around the world as a result. From pioneering overnight delivery to inventing package tracking to expanding international trade - innovation is in our DNA, which has empowered us to continue pushing boundaries to make supply chains smarter for everyone. These efforts enable the success of our customers, build prosperity in the communities where we operate, and accelerate the flow of goods and ideas that generate economic growth across countries and regions. We call this impact the FedEx Effect.
This report quantifies the FedEx Effect by showing the value of the company's economic contributions around the world. For the fourth consecutive year, we have measured a range of factors, including the impact of our company's revenues, capital expenditures, and spending on wages, as well as the ripple effects generated by our core services. To reflect the scale of our operations, we have calculated the impact that FedEx makes on the global economy as a whole, as well as on the economies of the United States and our major operating regions.
Today, FedEx connects the vast majority of the world's gross domestic product. As a result of this reach, FedEx contributed more than $85 billion in direct economic impact to the global economy in fiscal year (FY) 2024.1 In addition to this direct impact, FedEx spending to maintain its operations and its business services stimulates economic activity at other companies across the global economy - which is considered the company's indirect impact. In FY 2024, FedEx indirectly contributed an additional $39 billion in net economic output 2 around the world. In the global Transportation, Storage, and Communications sector,3 the company's indirect impact was the largest contribution totaling an estimated $20.4 billion.
The extensive FedEx supply chain multiplies this impact. In calendar year (CY) 4 2023, FedEx contracted with approximately 100,000 suppliers, 90% of which are small businesses.5 FedEx spending with these suppliers drives further economic growth and supports local job creation.
Our global reach also gives FedEx a unique opportunity to make positive contributions to the world beyond the impact of our business activities. FedEx is committed to supporting the communities where we live, work, and serve through FedEx Cares, which provides charitable donations in the form of direct financial support, employee volunteering, and in-kind shipping services. FedEx is also investing in sustainable technologies such as electric vehicles (EVs) and renewable power to reduce the environmental impact of our operations, while contributing to the research and development of the next generation of sustainable breakthroughs, such as carbon capture.
While this report highlights the impact of our operations during FY 2024, FedEx remains committed to the spirit of innovation and progress on which our company was founded. We recently consolidated our major operating companies into Federal Express Corporation - becoming a single company operating a unified, fully integrated air-ground express network under the respected FedEx brand. The change will allow us to become a more flexible, efficient, and intelligent network to better serve our customers. We are also combining the data and insights from the 16 million packages we deliver per day globally with artificial intelligence (AI) and machine learning to create new digital tools and solutions that are helping us run and change our business, digitize our customers' supply chains, and move up the value chain in e-commerce.
We believe that operating as one FedEx team is another milestone in our company's history of bringing the world closer together. By continuing to foster connections between people and possibilities everywhere in the world, we can multiply our economic impact for years to come.
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Click here to learn about FedEx Cares, our global community engagement program.
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SOURCE: FedEx Corporation
View the original press release on accesswire.com
