Memphis, Tenn., October 30, 2023 – FedEx Corp. (NYSE: FDX) today 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.
FedEx celebrated 50 years of operations on April 17, 2023. The company has the most extensive transportation network in the world, providing service 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 highlights of the FedEx Economic Impact Report include:
- Indirect impact: FedEx indirectly contributed an estimated $35 billion to global net economic output2 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 2022 revealed that the company’s spending with these suppliers during that time supported 1.1 million jobs.
- Operational enhancements: FedEx continued to improve its network and services in FY 2023. This included opening new facilities across a range of locations, including Ireland, Poland, Australia, and South Korea; enhancing many existing facilities by introducing advanced sorting equipment, adding warehouse capacity, and expanding airport ramp and road truck operations; and implementing operational efficiencies in markets like Alaska.
- 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.
- Small businesses: FedEx supported small business growth — a major driver of economic activity globally — by providing small business resource hubs in certain regions and tailored logistics and customs services aimed at helping unlock new markets. The company also awarded small business grants to 77 companies around the world during FY 2023.
- Sustainability: In FY 2023, FedEx added more electric vehicles (EVs) to its pickup and delivery fleet around the world and continued to make its facilities more sustainable and energy efficient. The company also invested in third-party initiatives, including research at the Yale Center for Carbon Capture and Third Derivative, RMI’s global climate technology accelerator.
- Giving: FedEx supported local communities through volunteer activities, in-kind shipping, and donations totaling $58.6 million to its direct partnerships with NGOs and nonprofits in FY 2023. The company also completed its 50 by 50 campaign — a four-year initiative designed to positively impact 50 million people around the world by the company’s 50th birthday.
United States impact
FedEx delivers to every U.S. ZIP code through its extensive network made up of roughly 4,800 facilities, as well as more than 7,000 independent service providers. With approximately 370,000 U.S. employees in FY 2023, FedEx is one of the largest employers in the country and is proud to support an inclusive, diverse, and equitable workplace where 61% of U.S. employees identify as minorities.
The study found that in FY 2023, FedEx directly contributed an estimated 8.2% of net economic output to the U.S. Transportation and Warehousing sector3 and indirectly contributed $8.7 billion to net output across the U.S. economy. However, the FedEx Effect extends beyond the company’s contributions to economic growth and employment.
For 50 years, FedEx has worked to improve the prosperity and health of the communities it serves. For example, team members across the U.S., as well as Canada, Chile, and Puerto Rico, volunteered in FY 2023 to provide more than 8,400 pairs of shoes and 18,500 winter coats, funded by FedEx, to children at 70 schools in collaboration with nonprofit Operation Warm. Additionally, FedEx continued working with federal, state, and local governments to provide services that help with their day-to-day operations, as well as during crises, like when the company transported baby formula for Operation Fly Formula in 2022.
Read the full FY 2023 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 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.
1Fiscal year (FY) 2023 is defined as June 1, 2022-May 31, 2023.
2Net 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.
3As defined by the U.S. Bureau of Economic Analysis.