- In Asia Pacific, Middle East and Africa, FedEx indirectly contributed to net economic output worth US$3.8 billion in FY22 – a 12% increase over FY21
- With nearly 550,000 employees worldwide, FedEx moved an average of 16 million shipments daily through its 5,000 facilities in FY2022
- The report illustrates the FedEx Effect, daily work that it does for small and medium businesses that are the backbone of local communities
Global freight forwarder FedEx Corp. contributed net economic output worth US$3.8 billion indirectly to Asia Pacific, Middle East and Africa (AMEA) economies during the COVID-19 pandemic, says a report that shows FedEx economic impact on the region.
“Measuring the FedEx Effect, 2022 Economic Impact Report,” which FedEx produced for the first time in consultation with Dun & Bradstreet, analyzes the company’s impact on the global economy at the conclusion of its 2022 fiscal year.
The report said FedEx played an integral role in helping businesses recover from the pandemic while overcoming strained supply chains and economic challenges.
With nearly 550,000 employees worldwide, FedEx moved an average of 16 million shipments each day through its 5,000 facilities in FY2022. Its network optimization and investments improved efficiency and capacity for FedEx customers.
“All around the world, FedEx helped individuals, businesses, and communities emerge from the pandemic by moving goods and providing services that connect us and power the global economy,” said Raj Subramaniam, FedEx president and CEO.
“The report illustrates the ongoing and important work we do every day, including supporting small- and medium-sized businesses which are the backbone of our local communities. We call this, the ‘FedEx Effect.’”
The report said FedEx plays a role in fueling innovation, creating and supporting local jobs in major markets around the world.
- FedEx worked with 360,000 suppliers globally with over 16.5 million employees. These businesses, many small players, had a combined annual revenue of $700 billion.
- Small businesses made up 88% of the FedEx supply chain, and more than half of their spend in each region went to small players that collectively supported about 810,000 small business jobs.
- In FY2022, FedEx invested $6.8 billion, up 15% year on year, in facility upgrades, network optimization and infrastructure improvements, which correlated to direct economic growth in the respective markets.
The report said FedEx serves more than 100 countries and territories in the highly inter-connected region in Asia Pacific, the Middle East, Indian Subcontinent and Africa, playing an increasingly prominent role as a driver of global trade.
To support the region’s economic recovery from the COVID-19 pandemic, FedEx made strategic investments that contributed to a 13% increase in employment, supporting over 58,000 jobs beyond its 37,000 team members in the AMEA region.
“Through our continuous commitment to the region we have helped support hundreds of thousands of businesses and communities still recovering from the pandemic,” said Kawal Preet, FedEx Express regional president for AMEA.
“Our investments in our hubs in Guangzhou, Osaka and Dubai enable us to meet demand and optimize routes for our customers as supply chains fluctuate. Our new and improved facilities like the Clark gateway facility in the Philippines, as well as the consolidation at our Delhi hub, create greater access to emerging markets and increase efficiency.”
FedEx established recently a direct commercial presence in Cambodia as well as in Saudi Arabia, Egypt and Jordan. It also announced plans to expand its Guangzhou gateway facility in China by setting up a new South China Operations Center.
In India, FedEx set up a new US$2 million international clearance gateway at Bangalore airport and consolidated and expanded its multimillion-dollar hub at Delhi International airport.
In Japan, FedEx spent $511 million with businesses there in Japan in FY2022. In 2021 and 2022, FedEx Express shipment volume from Japan to the US increased 54.8%; Europe, 47.5%; the Americas, 37.4%, and to the Middle East, India, Saudi Arabia and Africa, 18.5%.
The report shows that in FY2022, FedEx donated over $86 million globally to charities and local non-profits in the communities where its team members live and work.
The company also served as a critical conduit for food aid deliveries to residents in Shanghai, China during COVID-19 lockdowns in the city and delivered vaccines and critical medical supplies to India, Korea, and Vietnam among others.
The report not just shows FedEx economic impact but also depicts its commitment to connecting the world responsibly, through its stated goal of carbon-neutral operations by 2040 and pursuit of investments in renewable energy to power its operations.
