FedEx’s impact on the global economy: Report

FedEx Corporation has released the findings from its 2022 report which analysed the company’s impact on the global economy.

Over the past 49 years, FedEx has expanded its services to more than 220 countries and territories and invested in a global network, enabling businesses of all sizes to access and grow the global economy.

The Global Economic Impact Report, produced in consultation with global business data and analytics provider, Dun & Bradstreet, analysed the impact FedEx has on economies over the world.

The report shows that in FY 2022, FedEx donated over $86 million to global charities and local non-profits in the communities where its team members live and work.

It also found that FedEx played an integral role in helping businesses recover from the pandemic while overcoming strained supply chains and economic challenges.

During Covid-19 lockdowns, FedEx served as a critical conduit for food aid deliveries to residents in Shanghai, China and it delivered vaccines and critical medical supplies to India, Korea and Vietnam, among others.

With nearly 550,000 employees worldwide, FedEx moved an average of 16 million shipments each day through its 5,000 facilities in FY 2022.

FedEx Corporation President and CEO, Raj Subramaniam, said the company’s network optimisation and investments improved efficiency and capacity for FedEx customers.

“All around the world, FedEx helped individuals, businesses, and communities emerge from the pandemic by moving goods and providing services that connect us and power the global economy,” he said.

“The report illustrates the ongoing and important work we do every day, including supporting small- and medium-sized businesses which are the backbone of our local communities.

“We call this the ‘FedEx Effect.’”

FedEx said it plays a major role in fuelling innovation, creating and supporting local jobs, as well as helping lift individuals and their communities regionally and in major markets around the world.

In FY 2022, FedEx invested $6.8 billion in facility improvements, network optimisation and infrastructure improvements which correlated to direct economic growth in the respective markets.

Its global economic activity also supported 193,000 additional jobs beyond the FedEx worldwide employee base which was 20,000 more jobs than it indirectly supported in FY 2021.

In addition, FedEx worked with 360,000 suppliers globally who employed more than 16.5 million individuals. These businesses, many of which were small businesses, created significant economic activity within their local or regional markets and had a combined annual revenue of $700 billion.

Impact across Asia Pacific, Middle East and Africa (AMEA)

FedEx’s presence in Asia, the Pacific, the Middle East, Indian Subcontinent and Africa serves more than 100 countries and territories in a highly inter-connected region that is playing an increasingly prominent role as a driver of global trade.

As outlined in the report, FedEx made strategic investments to support the region’s economic recovery from the Covid-19 pandemic which contributed to a 13 per cent increase in employment – supporting more than 58,000 jobs beyond its 37,000 team members in AMEA region.

“Through our continuous commitment to the region we have helped support hundreds of thousands of businesses and communities still recovering from the pandemic,” said FedEx Express Regional President, Asia Pacific, Middle East, and Africa.

“Our investments in our hubs in Guangzhou, Osaka and Dubai enable us to meet demand and optimise routes for our customers as supply chains fluctuate.

“Our new and improved facilities like the Clark gateway facility in the Philippines, as well as the consolidation at our Delhi hub create greater access to emerging markets and increase efficiency.”

Across the region, FedEx’s footprint has continued to grow. It recently established a direct commercial presence in Cambodia as well as in Saudi Arabia, Egypt and Jordan.

FedEx also announced the plan to expand its gateway facility in Guangzhou, China by establishing a new South China Operations Centre.

Impact in Australia

FedEx began its operations in Australia in 1989, and has continued to extend its footprint by creating access to more international markets and investing in new and upgraded facilities that will further enhance its delivery times for international and domestic customers.

In October 2021, FedEx Express Australia announced additional weekly flights from Singapore to Sydney, Australia, doubling flight operations between the two countries.

As a result, FedEx Express Australia shipment volume in Singapore increased by 22 per cent in FY 2022.

“We are continuously strengthening our operations in Australia to ensure we offer our customers the most robust solutions possible to support their needs,” said FedEx Express Australasia Vice President, Peter Langley.

“Throughout the pandemic, SMEs have been the most severely affected and FedEx has been supporting small and medium businesses as well as e-retailers in tapping domestic opportunities or accessing more international markets.

“This includes providing solutions that offer a personalised experience that will help businesses exceed customer expectations.”

The full FedEx Global Economic Impact Report can be viewed on the company’s website which outlines its entire impact on communities and regions around the world.

Earlier this year, FedEx Freight, has opened a new 218-door facility in Phoenix, Arizona.

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