FedEx Delivered Over $80 Billion in Direct Impact to the Global Economy in FY 2023: Annual Economic Impact Report

FedEx released its annual economic impact report, analyzing the company’s worldwide network and role in fueling innovation during its 2023 fiscal year (FY 2023).  Produced in consultation with Dun & Bradstreet (NYSE: DNB), a leading provider of business decisioning data and analytics, the study demonstrates the positive impact FedEx has on individuals and communities around the globe — otherwise known as the ‘FedEx Effect’.

“FedEx has helped shape global supply chains and supported the e-commerce revolution over the past five decades by transforming the way businesses exchange goods, services, and ideas — all while continuously exceeding the evolving needs of our customers,” said FedEx President and CEO Raj Subramanian. “This report underscores our significant contributions to the economy and is a testament to our dedication to making a positive difference in the communities where we operate.”

The report reveals that FedEx contributed more than $80 billion in direct impact to the global economy in FY 2023, despite recent economic pressures. This activity reflects the scale of the network FedEx has developed and the company’s ongoing efforts to enhance its innovative services that help businesses of all sizes connect with customers and strengthen their operations.

AMEA impact

FedEx Express serves more than 100 markets across the AMEA region. The study found that with its extensive network, FedEx Express contributed 0.3% of net economic output in the Transportation, Storage, and Communications sector[1] in AMEA during FY 2023. Across all sectors of the AMEA economy, FedEx Express contributed 0.02% of total net economic output, which grew approximately 6% in FY 2023 to $44 trillion.

The company’s impact also included $2.7 billion in indirect contributions to the regional economy in FY 2023. Among specific industries, FedEx Express indirectly contributed $1 billion to AMEA’s critical Manufacturing sector, worth an estimated $9 trillion.[2] The company’s indirect contribution to the Transportation, Storage, and Communications sectors[3] was estimated to be $772 million.

“Sub-Saharan Africa is a rapidly emerging region in global trade, and we’re committed to fueling this growth. Our aim is to create more jobs and enhance economic opportunities across the region,” said Kami Viswanathan, President of FedEx Express Middle East, Indian subcontinent, and Africa. “Our main focus is on delivering exceptional customer service and expanding access to the benefits of global trade. We believe that fostering a connected and sustainable future will strengthen the FedEx Effect for everyone in 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 enterprise (SME) 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 SMEs.

CSR and sustainability 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 programmes, 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 the company’s 50 Days of Caring initiative. This involved a variety of sustainability and environmental-protection activities, including tree planting, beach and park clean-ups, and educational seminars on eco-living/eating, waste segregation, road safety, and sustainable logistics. In South Africa, the Lunch Box Fund and Breard Foundation were some of the organizations supported by FedEx to enable their socio-economic efforts of empowering communities.

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. In FY 2023, FedEx Express introduced dozens of EVs in markets across the Middle East and Africa, including 10 electric delivery vehicles in South Africa. The MAXUS eDeliver 3s EVs, have zero-tailpipe emissions, and a 240km operational range on a full charge.

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. FedEx also 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.

[1] As defined by the United Nations Conference on Trade and Development (UNCTAD).

[2] As defined by UNCTAD.

[3] As defined by UNCTAD.