A FedEx Corp. released today its annual economic impact report, analyzing the company's global network and its role in building prosperity in local communities during the fiscal year 2024 (FY 2024)1Produced with the consultancy of Dun & Bradstreet (NYSE: DNB), leading provider of data and business decision analytics, the study highlights the "FedEx Effect" – the impact that FedEx has on accelerating the flow of goods and ideas that generate economic growth in countries and regions.
"At FedEx, we have the vision of making supply chains smarter for everyone, leveraging data and advanced technology to better serve our clients and their customers, thus expanding our reach and impact, said Raj Subramaniam, president and CEO of FedEx Corporation. The "FedEx Effect" represents our relentless commitment to excellence, economic growth and the communities where we live and work.”
The report reveals that FedEx contributed over $85 billion in direct impact to the global economy in fiscal year 2024, responding for approximately 0,1% of the total net economic production of the world2.This activity reflects the scale of the FedEx network 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 company has the largest transportation network in the world, providing services to over 220 countries and territories. Furthermore, FedEx employs more than 500.000 people in more than 5.000 units and moves an average of 16 million packages per day.
The contributions of FedEx to global net economic output – including your recipes, salaries and capital expenditures – they create additional economic activity throughout their business network. This indirect impact activity helps drive production increases across all sectors due to the company's relationships within and between sectors of the global economy. In the fiscal year 2024, FedEx indirectly contributed about $39 billion to global net economic output3, including its largest indirect contribution to the global transport and storage sector4.
In Latin America and the Caribbean (LAC), in the fiscal year 2024, FedEx contributed 0,8% of net economic production in the Transport sector, Logistics and Communication, and an indirect economic impact of US$ 1,2 billion for the region's economy.
We are deeply committed to continuing to support economic growth and sustainability through our operations. In Brazil, "our investments in infrastructure and people demonstrate this", says Camila Lima, Vice President of Operations in Brazil. "Furthermore, we continue to improve our air operations, bus stations and logistics to connect the largest economy in South America to the world. Our goal is always to seek excellence in customer service for clients of all sizes, from small and medium enterprises to large corporations, offering solutions for national and international transport and ensuring the availability of highly qualified teams. We remain united in our mission to connect Brazilian businesses to opportunities, reduce our environmental footprint and positively impact the economy, finalizes the executive.
This impact is amplified through substantial investments by FedEx in infrastructure and sustainability, how the expansion of its presence through the opening of its first FedEx Street Shipping Center, in Rio de Janeiro, in addition to focusing on innovations in security, through the use of electric vans equipped with AI in São Paulo to reduce the risk of cargo theft, for example.
The company's extensive delivery network and infrastructure throughout the region includes ground hubs, logistics centers, air cargo terminals, warehouses, collection and delivery stations, all operated by thousands of employees who provide fast and efficient services to their clients. In Brazil, FedEx serves approximately 5.500 cities across the country, with a ground fleet of over 2.400 own vehicles and 50 branches – including the two largest FedEx logistics centers in Latin America, in Cajamar (SP) and Serra (ES).
With a structured business to serve companies of all sizes, including small and medium-sized ones, FedEx held its 7th edition of the FedEx Program for Micro and Small Businesses in the second half of 2023, that had Equal Inclusive Fashion, clothing manufacturing company, that produces conventional and adapted pieces for people with various types of disabilities, conquering first place. In the 2023 edition, more than 2.200 entrepreneurs registered their companies to participate in the Program – a 49% increase compared to the previous year.
The company's efforts in Latin America also have positive environmental and social impacts, promoting resilience and sustainable growth throughout the region. FedEx has introduced additional electric vehicles in Brazil and Chile and modernized its air fleet in Mexico, replacing older aircraft with new fuel-efficient planes. The company also purchases energy from renewable sources in various locations in Brazil and installed solar panels at its units in Simões Filho, Joinville, Betim, Governador Valadares and Petrolina. The electricity generated by FedEx's solar installations helped avoid 295 tons of CO2 emissions in fiscal year 2023. Based on these energy efficiency improvements, FedEx plans to expand the use of solar panels to other facilities in Brazil.
FedEx also provides significant support to local communities throughout the region, including care activities and rapid response to emergencies and natural disasters, like the donation of thousands of blankets made from the recycling of unused employee uniforms in Brazil. The initiative benefited institutions that support people in situations of social vulnerability and animal protection.
In other countries, like Chile, FedEx continued to increase its presence, expanding the distribution center in Pudahuel, Santiago – the largest installation focused on e-commerce in South America. Due to your sustainable efforts in Chile, FedEx obtained its Giro Limpio certification for ground operations in fiscal year 2024 – your fifth consecutive year. AND, in Mexico, FedEx provided assistance after Hurricane Otis, transporting more than 120 tons of food and essential items.
Key highlights from the FedEx Economic Impact Report include:
- Business:the continuous support of FedEx for trade policies that facilitate greater market access drives the company's purpose of connecting people and possibilities around the world. According to a recent survey by Morning Consult commissioned by FedEx, almost all business decision-makers in the US interviewed agree that global trade stimulates economic growth, creates jobs and opportunities, and promotes innovation.
- Operational improvements:FedEx continued to improve its network in fiscal year 2024, mainly through the continuous optimization of its terrestrial network into a single transportation system. Other multi-year investments continued, including the completion of important installations, as a hub at the World Central Airport in Dubai and a secondary sorting facility at Memphis International Airport. The company also added advanced sorting equipment to the existing facilities throughout its network, as well as additional storage capacity.
- Sustainability:the company continues to invest in renewable energy to power its facilities, electrification of its collection and delivery fleet and research on carbon sequestration to promote natural carbon capture solutions for adoption across the transportation sector.In the fiscal year 2024, FedEx has added electric vehicles (EVs), including zero-emission EVs and motorcycles in Brazil and dozens of EVs in new markets like Canada, Chile, Spain, United Kingdom, Netherlands and United Arab Emirates.
- Small businesses:FedEx helps small and medium-sized enterprises (SMEs) accelerate their growth and expand their global reach, supporting the creation of local jobs and economic activity. In addition to its portfolio solutions specific to SMEs, the company connects clients with their specialists and companies from other sectors for discussions focused on solutions that can add value to their businesses through a platform called 'SME Connect'.
- Supply chain:in 2023, 90% of the suppliers that FedEx hired were small businesses. The company's expenses with suppliers during this period supported approximately 400.000 jobs in small businesses around the world.
- Donation:FedEx supports local communities through FedEx Cares, that promotes donations, voluntary efforts of employees and cash remittance services worldwide. In the fiscal year 2024, the company's charitable contributions totaled over $55 million for its direct partnerships with NGOs and non-profit organizations.
Read the full FedEx Global Economic Impact Report for FY2024 and explore the FedEx Effect on communities and regions around the world atfedex.com/economicimpact.
