FedEx Corp. released its annual economic impact report, analysing the company’s worldwide network and role in fueling innovation during its 2023 fiscal year (FY 2023). The study demonstrates the positive impact FedEx has on individuals and communities around the globe — otherwise known as the ‘FedEx Effect.’
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.
Key global highlights of the FedEx Economic Impact Report include:
- Indirect impact: FedEx indirectly contributed an estimated $35 billion to global net economic output in FY 2023.
- Supply chain: FedEx contracted with roughly 100,000 suppliers in FY 2023 — 90 percent of which were small businesses. An analysis of spending with roughly 73,000 unique suppliers over the calendar year 2022 revealed that the company’s spending with these suppliers during that time supported 1.1 million jobs.
- Trade: FedEx continued supporting trade policies that offer greater market access and efficiency for its customers. This included advocating in favor of provisions like de minimis allowances, which enable individuals and businesses of all sizes to import low-value goods without duties and taxes.
FedEx Express began operations in 1984 in India, and the country has played a critical role in enabling connectivity to and from the Asia Pacific, Middle East, and Africa (AMEA) region. The study found that with its extensive network, FedEx Express contributed 0.3 percent of net economic output in the Transportation, Storage, and Communications sector in AMEA, including India, during FY 2023. Across all sectors of the AMEA economy, FedEx Express contributed 0.02 percent of total net economic output, which grew approximately 6 percent in FY 2023 to $44 trillion.