Hoofddorp, November 6, 2023 – FedEx Corp. (NYSE:FDX) released its annual economic impact report, analyzing the company’s worldwide network and role in fueling innovation during its 2023 fiscal year (FY 2023).[1] Produced in consultation with Dun & Bradstreet (NYSE: DNB), a leading provider of business decisioning data and analytics, the study demonstrates the positive impact FedEx has on individuals and communities around the globe — otherwise known as the ‘FedEx Effect.’
“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,” said Raj Subramaniam, President and CEO, FedEx Corporation. “This report underscores our significant contributions to the economy and dedication to making a positive difference in the communities where we operate.”
The report reveals that FedEx contributed more than $80 billion in direct impact to the global economy in FY 2023, despite recent economic pressures. This activity reflects the scale of the network FedEx has developed and the company’s ongoing efforts to enhance its innovative services that help businesses of all sizes connect with customers and strengthen their operations. In Europe, the company’s impact included $2.4 billion in indirect contributions to the regional economy in FY 2023.
FedEx celebrated 50 years of operations on April 17, 2023. The company has 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 14.5 million packages per day.
Key global highlights of the FedEx Economic Impact Report include:
· Indirect impact: FedEx indirectly contributed an estimated $35 billion to global net economic output[2] in FY 2023.
· Supply chain: FedEx contracted with roughly 100,000 suppliers in FY 2023 — 90% of which were small businesses. An analysis of spending with roughly 73,000 unique suppliers over calendar year (CY) 2022 revealed that the company’s spending with these suppliers during that time supported 1.1 million jobs.
· Trade: FedEx continued supporting trade policies that offer greater market access and efficiency for its customers. This included advocating in favor of provisions like de minimis allowances, which enable individuals and businesses of all sizes to import low-value goods without duties and taxes.
Europe impact
FedEx Express serves more than 45 countries in Europe, with air hubs at Roissy-Charles De Gaulle Airport in Paris, France and Liège Airport in Liège, Belgium. The company also operates 28 road hubs that reach across the continent and serve more than 700 pickup and delivery stations handling 1.3 million international shipments per week.
“Investments in two of our main hubs in the Netherlands and Italy show our commitment to the region and to keeping our customers’ goods flowing despite economic headwinds,” said Karen Reddington, President of FedEx Express Europe. She added, “And with our extensive network in Europe, we directly contributed around 0.4% to net economic output in the Transportation, Storage, and Communications sector.”[3]
Key Europe highlights from the report include:
· FedEx spent $7.3 billion with suppliers in Europe in CY 2022. This resulted in a 43% increase in the total number of supplier jobs supported by the company’s spending, as well as a 19% increase in small business jobs, year-over-year.
· FedEx Express continued making investments to optimize its European network in FY 2023, including the installation of new sorting equipment at its Stuttgart, Germany facility to improve package handling speed; the opening of a new ground operations center in Gdansk, Poland; and the completion of major road hubs in the Netherlands and Italy that will further improve intra-European shipments and support economic activity across the continent.
· FedEx Express employed more than 5,000 people in the area around its Roissy-Charles De Gaulle Airport hub in FY 2023 and is estimated to contribute nearly €1.9 billion to the local economy annually.
Read the full FY 2023 FedEx Economic Impact Report and further explore the FedEx Effect in Europe 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 nearly $90 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively and innovating digitally as one FedEx. 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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[1] Fiscal year (FY) 2023 is defined as June 1, 2022-May 31, 2023.
[2] Net 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.
[3] As defined by the United Nations Conference on Trade and Development (UNCTAD).