Hoofddorp, NL, October 24, 2024 - 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 output[2]. 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 output[3], including making its largest indirect contribution to the global Transportation, Storage, and Warehousing sector[4].
“At FedEx we keep the world moving, and are very proud of the impact we have on economic activity across industries such as technology, energy, healthcare, and pharmaceuticals,” said Wouter Roels, president, FedEx Europe. “This is a particularly special year as we celebrate 25 years of our hub at Paris-Charles de Gaulle Airport, the largest outside the U.S., which is a significant driver of local economic activity in the surrounding communities.”
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 multi-year investments continued including the completion of key facilities like 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 charitable contributions totaled more than $55 million to its direct partnerships with NGOs and nonprofits.
Europe Impact
FedEx continues to play a pivotal role in driving economic activity across Europe, a region that is not only a global hub for services and innovation but also one of the most attractive markets for foreign business expansion. With its comprehensive network serving nearly all European countries, FedEx connects European businesses with global opportunities through its air hub at Paris-Charles De Gaulle Airport (CDG), the company’s largest outside of the U.S., linking Europe to North America, Asia, and the Middle East.
In FY 2024, FedEx directly contributed an estimated $10 billion, equaling about 0.4%, to the net economic output of Europe’s Transportation, Storage, and Communications sector, which grew to an estimated $2.5 trillion—up 13% from FY 2023. FedEx’s indirect contributions to the European economy reached an estimated $2.9 billion, a 21% increase from the previous year, with most of this impact concentrated in the transportation and communications sector.
This growth was supported by FedEx’s opening of a new logistics facility and headquarters in Dublin, Ireland, upgrading facilities in Karlsruhe and the Leipzig region of Germany, and launching a new pickup and delivery facility in Poland. These investments strengthen the company’s presence, enabling it to meet growing demand and facilitate seamless trade throughout Europe.
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.
[1] Fiscal year (FY) 2024 is defined as June 1, 2023-May 31, 2024.
[2] The 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).
[3] 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.
[4] As defined by the United Nations Conference on Trade and Development (UNCTAD).