FedEx plays its part to aid the global economy
A new report looking at FedEx’s impact on the global economy found the company has played an important role in helping businesses recover from the Covid pandemic while they work to overcome strained supply chains and the many economic challenges that they face.
With FedEx having an average of 16m shipments passing each day through its 5,000 facilities during the 2022 financial year, the report, produced in consultation with market analyst Dun & Bradstreet, said that “the company’s network optimisation and investments improved efficiency and capacity for FedEx customers”.
The report highlighted a number of different ways in which the influence of FedEx has been felt in recent times. It has fuelled innovation, creating and supporting jobs, as well as helping lift individuals and their communities regionally and in major markets around the world, it suggested.
FedEx worked with 360,000 suppliers globally who employed more than 16.5m individuals in the 2022 financial year. These businesses had a combined annual revenue of $700bn, it was reported.
Small businesses made up 88% of the FedEx supply chain.
During the 2022 financial year, FedEx invested a total of US$6.8bn, representing a 15% increase over the previous financial year, in facility improvements, network optimisation and infrastructure improvements, the report added.
Much of that investment enabled FedEx Express to continue to increase its capacity for shipping volumes through network and facility improvements. This included, for example, completing the multi-year modernisation project at its Paris Charles de Gaulle Airport (CDG) hub.
“Our growing presence across Europe and the completed modernisation of our hub at the Paris-CDG airport will help our customers, both large and small, to connect intra-region and to the rest of the world with greater ease,” said Karen Reddington, regional president, Europe, at FedEx Express.
“Our network and our team members supported businesses as the region emerged from the worst of the pandemic including nearly double-digit growth in shipment volumes to key international regions out of the new Paris-CDG hub.”
The company has also had a positive non-commercial impact, the report outlined, including FedEx having donated during FY2022 over US$86m to charities and local non-profit concerns.
Meanwhile, it also served as a conduit for food and aid deliveries and donations to Ukraine and to Shanghai, among other locations impacted by the pandemic or by conflict.
The report also showed how the company is committed 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.
Raj Subramaniam, president and chief executive of FedEx Corporation, declared: “All around the world, FedEx helped individuals, businesses, and communities emerge from the pandemic by moving goods and providing services that connect humankind and power the global economy.
“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’.”