Fedex highlights regional impact with $85 billion contribution

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Fedex highlights regional impact with $85 billion contribution

Policy

Richard W. Smith President and Chief Executive Officer Airline and International | FedEx

By Sky Industry News

Nov 8, 2024

FedEx Corp. has released its annual economic impact report for the fiscal year 2024, highlighting the company's influence on global economic growth through its extensive network and services. The report, developed in collaboration with Dun & Bradstreet, emphasizes what is termed as the 'FedEx Effect,' which refers to FedEx's role in accelerating commerce and innovation across various regions.

Raj Subramaniam, president and CEO of FedEx Corporation, stated that the company aims to enhance supply chains using advanced data and technology. "The ‘FedEx Effect’ represents our relentless commitment to excellence, economic growth, and the communities where we live and work," he said.

In FY 2024, FedEx contributed over $85 billion directly to the global economy, accounting for about 0.1% of worldwide net economic output. The company's network spans more than 220 countries and territories, employing over 500,000 people across more than 5,000 facilities.

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The Asia Pacific region (APAC) has been identified as a key area of opportunity for FedEx. In this region alone, FedEx directly contributed an estimated 0.2% to net economic output in APAC’s Transportation, Storage, and Communications sector in FY 2024. Kawal Preet, president of Asia Pacific at FedEx remarked on APAC's importance: "By investing strategically in infrastructure and enhancing connectivity within the region and globally, we are empowering businesses to unlock new growth opportunities."

China remains a focal point for FedEx's operations within APAC due to its rapid economic expansion. Since entering China in 1984, FedEx has established significant infrastructure including branches across major cities like Beijing and Shanghai. Poh-Yian Koh from FedEx highlighted China's critical role: "This year marks the 40th anniversary of FedEx operations in China... allowing us to connect our customers in China to the world."

The report also outlines several strategic initiatives by FedEx aimed at bolstering trade connections between China and other markets through additional flights and operational enhancements such as upgraded facilities in Shenzhen.

FedEx continues its sustainability efforts by investing in renewable energy sources for its facilities while electrifying part of its fleet used for pickups and deliveries within China.

Additionally, small- and medium-sized businesses benefit from new services like enhanced International Priority® service aimed at reducing transit times globally.

Finally, through initiatives like 'FedEx Cares', the company engages with local communities via charitable activities including volunteering efforts like tree planting programs.