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‘FedEx effect’ boosts global economy by $85 billion
[ October 29, 2024 // Chris Lewis ]FedEx contributed more than $85 billion in direct impact to the global economy in 2024, or around 0.1% of the world’s total net economic output said the carrier in its released its annual economic impact report, published on 29 October.
Produced in consultation with data an analysis firm Dun & Bradstreet (Nit measures what it terms the ‘FedEx Effect’ on accelerating the flow of goods and ideas that generate economic growth.
The company claims the most extensive transportation network in the world, serving more than 220 countries and territories and employs over 500,000 people at some 5,000 facilities, moving an average of 16 million packages per day.
FedEx adds that its indirect impact activity also helps drive production increases across industries, an estimated $39 billion in 2024.
FedEx Corporation president and chief executive Raj Subramaniam said: “At FedEx, we have a vision to make supply chains smarter for everyone by leveraging advanced data and technology to better serve our customers and their customers, thereby extending our reach and impact. The ‘FedEx Effect’ represents our relentless commitment to excellence, economic growth, and the communities where we live and work.”
Wouter Roels, president, FedEx Europe, added: “At FedEx we keep the world moving, and are very proud of the impact we have on economic activity across industries such as technology, energy, healthcare, and pharmaceuticals.
“This is a particularly special year as we celebrate 25 years of our hub at Paris-Charles de Gaulle Airport, the largest outside the US, which is a significant driver of local economic activity in the surrounding communities.”
FedEx said it had continued to improve its network in 2024, notably through the ongoing optimization of its surface network into a single transportation system. Other multi-year investments continued including the completion of a hub at Dubai World Central Airport and a secondary sort facility at Memphis International Airport. The company also added advanced sorting equipment to existing facilities and additional warehouse capacity.
It continues to invest in renewable energy to power its facilities, electrification of its pickup and delivery fleet, and carbon sequestration research to advance natural carbon capture solutions for adoption across the transportation industry.
It also connects small business customers with subject matter experts from FedEx and other industries through its ‘SME Connect’ platform.
FedEx Cares meanwhile promotes charitable giving, employee volunteer efforts, and in-kind shipping services around the world. In FY 2024, the company’s charitable contributions totalled more than $55 million to its direct partnerships with NGOs and non-profit organisations.
In Europe, FedEx directly contributed an estimated $10 billion to the economy in 2024, equivalent to about 0.4% of the continent’s net economic output.
Growth was supported by FedEx’s opening of a new logistics facility and headquarters in Dublin, Ireland, upgrading facilities in Karlsruhe and the Leipzig region of Germany, and launching a new pickup and delivery facility in Poland.
Tags: FedEx