FedEx's FY 2023 Economic Impact: Over $80 Bn Delivered To Global Economy, Reveals Annual Report
FedEx Corp. has released its annual economic impact report, which analyses the company's global network and its role in driving innovation during the 2023 fiscal year. The report, created in collaboration with Dun & Bradstreet, showcases the positive influence of FedEx on individuals and communities worldwide, known as the 'FedEx Effect.'
Raj Subramaniam, President and CEO of FedEx Corporation, highlighted the company's significant contributions to the global economy and its commitment to making a positive difference in the communities it serves. “FedEx has helped shape global supply chains and the e-commerce revolution over five decades by transforming the way businesses exchange goods, services, and ideas — all while continuously exceeding the evolving needs of our customers,” said Subramaniam. He added, “This report underscores our significant contributions to the economy and dedication to making a positive difference in the communities where we operate.”
The report reveals that FedEx contributed more than USD 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.
The study also highlights the impact of FedEx in India, where the company employs more than 2,900 team members and operates three major international gateways.
FedEx, celebrating its 50th anniversary in 2023, boasts the world's most extensive transportation network, serving over 220 countries and territories. With a workforce of over 500,000 people across more than 5,000 facilities, the company moves approximately 14.5 million packages per day.
The FedEx Economic Impact Report highlights several key global contributions during FY 2023. Indirectly, FedEx made an estimated USD 35 billion impact on the global net economic output. In terms of the supply chain, FedEx engaged with approximately 100,000 suppliers during the fiscal year, with 90 percent of them being small businesses.
An analysis of the company's spending with around 73,000 unique suppliers in the calendar year 2022 revealed that this expenditure supported 1.1 million jobs. Additionally, FedEx remained committed to supporting trade policies aimed at providing greater market access and efficiency for its customers.
This commitment included advocating for provisions such as de minimis allowances, which permit individuals and businesses of all sizes to import low-value goods without incurring duties and taxes.
It may be noted that 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 per cent of net economic output in the Transportation, Storage, and Communications sector[3] in AMEA, including India, during FY 2023.
Across all sectors of the AMEA economy, FedEx Express contributed 0.02 per cent of total net economic output, which grew approximately 6 per cent in FY 2023 to USD 44 trillion.
Kami Viswanathan, President of FedEx Express Middle East, Indian subcontinent, and Africa, said: “With the world’s most extensive transportation network, we are dedicated to delivering value through smarter and sustainable solutions that drive global economic transformation. Our commitment extends to nurturing local talent and investing in advanced capabilities to drive innovation and foster growth in India. In doing so, we not only connect businesses across the globe but also contribute to the growth and development of the Indian economy.”
FedEx Express has recently incorporated over 30 electric vehicles (EVs) into its fleet in India, alongside improvements to its facility at the New Delhi Cargo Complex. This facility features sustainable elements such as solar energy and an advanced variable refrigerant volume cooling system, reducing electricity consumption by approximately 15 per cent.
Moreover, FedEx Express is dedicated to supporting India's innovation economy. In March 2023, the company unveiled plans to establish its inaugural Advanced Capability Community (ACC) in Hyderabad.
The FedEx ACC, staffed by full-time employees, aims to foster the development of technological and digital innovations, enhancing FedEx's value in the global supply chain ecosystem. Additionally, the company inaugurated the FedEx Innovation Lab (FIL) in May 2023, intending to invest in early-stage digital start-ups in India and the broader region.
