FedEx Corp. has released its annual economic impact report, highlighting the company’s global network and role in driving innovation during its 2023 fiscal year. The report, produced in consultation with Dun & Bradstreet, highlights the positive impact FedEx has on individuals and communities worldwide, known as the ‘FedEx Effect.’ FedEx has transformed global supply chains and the e-commerce revolution over five decades, transforming the way businesses exchange goods, services, and ideas. The report reveals that FedEx contributed over $80 billion in direct impact to the global economy in FY 2023, despite recent economic pressures. This reflects the scale of FedEx’s network and its ongoing efforts to enhance its innovative services, helping businesses connect with customers and strengthen their operations.

 

AMEA impact 

FedEx Express, a global shipping company, contributed 0.3% of net economic output in the Transportation, Storage, and Communications sector in the AMEA region during FY 2023. The company’s net economic output grew by 6% to $44 trillion. In addition, FedEx Express made $2.7 billion in indirect contributions to the regional economy, with an estimated $1 billion going to the $9 trillion Manufacturing sector and $772 million to the Transportation, Storage, and Communications sector.

“The AMEA region has an increasingly prominent position in the global economy. We are committed to supporting the growth we are seeing here by investing in our facilities and network. Both directly and indirectly, our work supports a growing number of jobs in the wider economy, and we want that to continue,” said Kawal Preet, President, Asia Pacific, Middle East, and Africa region, FedEx Express. “Our focus is on our customers and creating greater access to the possibilities that global trade brings. We believe that creating an even more connected and sustainable future will strengthen the FedEx Effect for team members, customers, suppliers, and communities across the region.” 

 

The FedEx economic footprint in the region continues to grow.

  • FedEx spent $3.7 billion with suppliers in the AMEA region in CY 2022. 
  • FedEx supplier spending makes a significant contribution to the small- and medium-sized business (SAM) market. The number of small business jobs supported by FedEx supply chain spending increased the most in AMEA and Europe, with both regions recording a 19% increase. In AMEA, 50% of FedEx supply chain spending went to SAMs.  
  • FedEx Express announced plans to invest in additional capacity by establishing the new South China Operations center in Guangzhou.
  • FedEx opened several new facilities in the region, including a new pickup, delivery, and self-pickup/drop-off station in Taiwan; a new warehouse in Batam, Indonesia; and a new domestic hub in Adelaide, Australia that also supports international air freight shipments. 
  • Our newly opened FedEx air gateway at Incheon International Airport in South Korea has double the package-sorting capacity of the previous facility and additional refrigeration chambers to support cold-chain shipments. 
  • FedEx Express is digitizing its operations to develop its smart logistics network. This includes investing in an artificial intelligence-powered sorting robot at its South Pacific regional hub in Singapore in December 2022.
  • FedEx announced plans to open its first Advanced Capability Community (ACC) in Hyderabad, India to support the development of technological and digital innovations that enable FedEx to provide even greater value in the global supply chain ecosystem.

 

Giving impact

The report reveals that FedEx donated $58.6 million globally in FY 2023 to charities and local non-profits in the communities where its team members live and work. In AMEA, this includes environmental programs, childhood education, entrepreneurship, and healthcare initiatives to help improve lives. In April 2023, more than 1,000 FedEx volunteers and their families across 22 AMEA markets participated in 50 days of Caring undertaking a variety of sustainability and environmental-protection activities, including tree plantations, beach, and park clean-ups, and hosting educational seminars on eco-living/eating, waste segregation, road safety, and sustainable logistics.

 

FedEx is committed to connecting the world responsibly, through its stated goal of achieving carbon-neutral operations by 2040 and pursuit of investments in renewable energy to power its operations.

 

FedEx celebrated 50 years of operations on April 17, 2023. The company has the most extensive transportation network in the world, providing services 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. 

 

Read the full FY 2023 FedEx Economic Impact Report and further explore the FedEx Effect across the AMEA region 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.