FedEx reports significant global economic contributions for fiscal year 2024

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FedEx reports significant global economic contributions for fiscal year 2024

Policy

Lance Moll FedEx Freight Leadership President and CEO | FedEx

By Sky Industry News

Oct 24, 2024

FedEx Corp. has released its annual economic impact report, highlighting the company's influence on the global economy during its 2024 fiscal year. The report, produced in collaboration with Dun & Bradstreet, emphasizes the "FedEx Effect," which refers to FedEx's role in accelerating economic growth by facilitating the flow of goods and ideas worldwide.

Raj Subramaniam, president and CEO of FedEx Corporation, stated, "At FedEx, we have a vision to make supply chains smarter for everyone by leveraging advanced data and technology to better serve our customers and their customers, thereby extending our reach and impact." He added that the "FedEx Effect" represents their commitment to excellence and economic growth.

The report shows that FedEx contributed over $85 billion directly to the global economy in FY 2024. This accounts for about 0.1% of the world's total net economic output. Additionally, FedEx indirectly contributed an estimated $39 billion to global net economic output through its business network relationships.

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Key highlights from the report include:

- Trade: FedEx supports trade policies that enhance market access. A survey commissioned by FedEx found that most U.S. business decision-makers believe global trade stimulates economic growth and innovation.

- Operational enhancements: In FY 2024, FedEx optimized its surface network into a single transportation system and completed several infrastructure investments.

- Sustainability: The company invested in renewable energy and electrification of its fleet, adding electric vehicles across various markets.

- Small businesses: FedEx aids small- and medium-sized businesses (SAMs) in expanding globally through initiatives like the 'SME Connect' series.

- Supply chain: In 2023, 90% of suppliers contracted by FedEx were small businesses.

- Giving: Through FedEx Cares, the company contributed over $55 million via partnerships with NGOs and nonprofits.

In the United States, where it employs approximately 370,000 people, FedEx directly contributed an estimated 6.7% of net economic output to the Transportation and Warehousing sector in FY 2024. The company also indirectly contributed $8.1 billion across the U.S. economy.

FedEx's operations include major air hubs in Memphis and Indianapolis as well as international gateways in Alaska and Miami. These facilities help adapt to changing economic conditions and facilitate global trade.

For more details on these findings, readers can access the full FY 2024 FedEx Global Economic Impact Report at fedex.com/economicimpact.