FedEx chief's positive outlook
04-05-2005, 06:26 PM
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FedEx chief's positive outlook
Memphis Business Journal - 11:25 AM CDT Tuesday
FedEx chief has positive outlook for U.S. exporters
U.S. exporters could see good times ahead, says FedEx Corp. chairman and CEO Frederick W. Smith.
Smith spoke yesterday to an audience of international business representatives and United States Commercial Services executives kicking off a five-day conference at the University of Memphis FedEx Institute of Technology.
He says last year's double-digit export growth rate and current forecast for the global economy indicates a healthy climate for U.S. exporters.
"General consensus is that 2005 GDP growth in the U.S. will be around 3.5% -- higher than the trend rate of 3.2% -- and the current up-cycle, led by capital spending, industrial production and inventory replenishment, will last through the near-term future," Smith says.
Fostering relationships, the conference seeks to bring FedEx (NYSE: FDX) senior executives and USCS officers together. U.S. exports reached a value of $1.1 trillion last year, and small to medium-sized companies represent 97% of all U.S. exporters and nearly 30% of the value, according to USCS. Exports have increased fivefold over the last 25 years; Tennessee has seen a 63% increase in exports over the last five years and a tenfold increase in exports to China along over the same period.
An increase in high value-added, high tech goods; globalization; fast-cycle logistics; and e-commerce were three trends Smith identified as driving world commerce.
"While international air cargo accounts for less than 2% of tonnage moved, it is more than 40% of the value, even more if petroleum and agricultural products are factored out," he says. "With global sourcing and selling, companies can streamline their supply chain and open new markets all over the world. Not only has the size of the global market increased, it has become more fast-paced--estimates point to 40% of the U.S. economy being conducted on a fast-cycle basis--a natural fit with the air cargo and express industry.
"The Internet and e-commerce add fuel to the other three trends, facilitating our economy and a vital growth engine for business today, enabling companies and customers to source and sell globally," he says.
FedEx chief has positive outlook for U.S. exporters
U.S. exporters could see good times ahead, says FedEx Corp. chairman and CEO Frederick W. Smith.
Smith spoke yesterday to an audience of international business representatives and United States Commercial Services executives kicking off a five-day conference at the University of Memphis FedEx Institute of Technology.
He says last year's double-digit export growth rate and current forecast for the global economy indicates a healthy climate for U.S. exporters.
"General consensus is that 2005 GDP growth in the U.S. will be around 3.5% -- higher than the trend rate of 3.2% -- and the current up-cycle, led by capital spending, industrial production and inventory replenishment, will last through the near-term future," Smith says.
Fostering relationships, the conference seeks to bring FedEx (NYSE: FDX) senior executives and USCS officers together. U.S. exports reached a value of $1.1 trillion last year, and small to medium-sized companies represent 97% of all U.S. exporters and nearly 30% of the value, according to USCS. Exports have increased fivefold over the last 25 years; Tennessee has seen a 63% increase in exports over the last five years and a tenfold increase in exports to China along over the same period.
An increase in high value-added, high tech goods; globalization; fast-cycle logistics; and e-commerce were three trends Smith identified as driving world commerce.
"While international air cargo accounts for less than 2% of tonnage moved, it is more than 40% of the value, even more if petroleum and agricultural products are factored out," he says. "With global sourcing and selling, companies can streamline their supply chain and open new markets all over the world. Not only has the size of the global market increased, it has become more fast-paced--estimates point to 40% of the U.S. economy being conducted on a fast-cycle basis--a natural fit with the air cargo and express industry.
"The Internet and e-commerce add fuel to the other three trends, facilitating our economy and a vital growth engine for business today, enabling companies and customers to source and sell globally," he says.
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