NYSE-listed FedEx contributed more than $80 billion in direct impact to the global economy in fiscal year 2023 (June 1, 2022 – May 31, 2023), despite recent economic pressures.
“This activity reflects the scale of the network FedEx has built and the company’s continued efforts to improve its innovative services that help companies of all sizes connect with customers and strengthen their operations,” it said in the annual economic report prepared in consultation with Dun & Bradstreet.
The study shows FedEx’s positive impact on individuals and communities around the world – also known as the FedEx Effect.
“In fiscal year 2023, FedEx’s direct contributions accounted for approximately one percent of total net economic output in the $8.8 trillion transportation, warehousing and communications sector, as defined by the United Nations Conference on Trade and Development (UNCTAD).
“Despite several economic headwinds in fiscal year 2023, total global net economic output increased to an estimated $103 trillion in the fiscal year, up from $92 trillion the previous year. FedEx’s direct contributions accounted for 0.09% of that total – a significant amount for a single company.”
The study found that FedEx Express, with its extensive network, contributed 0.3 percent of net economic output in the transportation, warehousing and communications sector in Asia Pacific, the Middle East and Africa (AMEA) in fiscal 2023. “Across all sectors of the AMEA economy, FedEx Express contributed 0.02 percent of total net economic output, which grew about six percent to $44 trillion in fiscal 2023.”
The company’s impact also included $2.7 billion in indirect contributions to the regional economy in fiscal 2023, the report added. “Among certain industries, FedEx Express indirectly contributed $1 billion to the AMEA’s critical manufacturing sector, an estimated value of $9 trillion. The company’s indirect contribution to the transportation, storage and communications sectors was estimated at $772 million.”
Kami Viswanathan, President, Middle East, Indian Subcontinent and Africa at FedEx Express, said: “Sub-Saharan Africa is a rapidly growing region in global trade and we are committed to driving this growth. Our goal is to create more jobs and improve economic opportunities throughout the region. Our primary focus is providing exceptional customer service and expanding access to the benefits of global trade. We believe that promoting a connected and sustainable future will strengthen the FedEx Effect for everyone in the region.”
CSR and sustainability impact
According to the report, FedEx donated $58.6 million worldwide in fiscal year 2023 to charities and local nonprofits in the communities where its team members live and work. “In AMEA, this includes environmental programs, child education, entrepreneurship and health initiatives to improve lives. In April 2023, more than 1,000 FedEx volunteers and their families participated in the company’s 50 Days of Caring initiative in 22 AMEA markets.”
In South Africa, the Lunch Box Fund and the Breard Foundation are some of the organizations supported by FedEx to enable their socio-economic efforts to strengthen communities, the report added.
FedEx also employs over 500,000 people at more than 5,000 facilities and moves approximately 14.5 million packages daily.