With nearly 550,000 employees and more than 5,000 offices around the world, FedEx is certainly a major player in the global economy.
To demonstrate this, the Memphis-based logistics giant recently released an analysis of its direct and indirect impact on the global economy in fiscal 2022 as a whole and by region, conducted by business analytics firm Dun & Bradstreet.
FedEx released a similar report on its economic impact on the US in 2021, but this is the first time it has produced its own study with a global perspective.
“As announced in last year’s Economic Impact Study, this year’s report delivers on our promise to look beyond the U.S. economy and provide insights into the impact FedEx is making in every region in which we operate,” said CEO Raj Subramaniam in the introduction to the report.
Among the report’s main points, FedEx estimated that it delivered 16 million shipments per day and supported $22 billion in economic activity outside of its core operations.
Here are some other key findings from the study.
Global Impact of FedEx
FedEx represented 1.2% of the total net economic output in the transportation, warehousing and communications sector of the United Nations Conference on Trade and Development and 0.1% of the net economic output of all industries.
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The company brought in total revenue from its direct suppliers of $700 billion. 88% of these were classified as small or medium-sized enterprises and comprised around 810,000 jobs.
FedEx also made $22.6 billion in indirect contributions to net economic output, which includes activities that are at least one step away from direct FedEx investments, such as: B. Contributions to the larger supply chain or increased activity near FedEx locations.
The company also made $86 million in charitable donations to various nonprofit organizations around the world through its FedEx Cares segment.
Impact of FedEx in the United States
FedEx represented 12% of the net economic output in the transportation and logistics sector and 0.3% of the net economic output of all industries in the US. The company also contributed $8.5 billion in indirect net economic output to the country.
As a global headquarters, most of FedEx’s jobs are in the United States, which employs 412,770 people. The company also provided nearly 11,000 of those employees with $17 million in tuition.
FedEx also completed multimillion-dollar capital projects this year, including the opening of the FedEx Logistics headquarters in Memphis and the expansion of FedEx Express’ air freight hub at Miami International Airport.
Influence of FedEx in America
FedEx represented nearly 7% of the transportation, warehousing and communications sector’s net economic output (including the US contributions mentioned above) and contributed $12 billion in indirect net economic output to the region.
The company employed 22,930 people in Canada and 24,389 people in Latin America and the Caribbean. Mexico in particular has seen massive growth over the past year with the opening of 25 new FedEx locations across the country.
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Impact of FedEx in Europe
With the acquisition of TNT Express and its full integration last year, FedEx now serves more than 45 countries and territories across Europe. It represented 0.5% of the net economic output of the transport, storage and communications sector in the region and $3.3 billion in indirect net economic output.
As of May 31, FedEx employed approximately 50,000 people on the continent. This included jobs from new buildings in Poland, Latvia, Romania, the Czech Republic and France as well as expansions at other locations.
Impact of FedEx in Asia Pacific, Middle East, Indian Subcontinent and Africa
FedEx represented 0.2% of the net economic output of the transportation, warehousing and communications sector and $10 billion in revenue. It also contributed $3.8 billion to the indirect net economic output in the region.
FedEx Express employed approximately 37,000 people across the region and contributed to other off-site workforce development initiatives such as: B. Opening an internship program in the United Arab Emirates and establishing a youth leadership program in South Africa.
Niki Scheinberg is a reporter for FedEx and logistics at The Commercial Appeal. She can be reached at [email protected]
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