This country – and much of the world economy – is in a backwards slide that must be reversed. Many leaders in corporate America today, including me, have ideas on the biggest challenges we face and the best solutions. I shared my own views on this recently with the National Association for Business Economics in Washington, D.C., of which our Chief Economist Gene Huang is president.

To revitalize our economy and build opportunity for current and future generations, we must:
• Reduce our reliance on imported petroleum;
• Combat overregulation; and
• Revitalize business through tax reform, education and training.

Just like you, we’re keeping an eye on the cost of fuel. At FedEx, our vision is to help develop a new short-haul transportation system powered by electricity. I am a member of the Electrification Coalition, which recommends the creation of “electrification deployment communities” — areas where incentives would support electrification on a broad scale.

Today, FedEx is testing all-electric pickup and delivery vehicles in the U.S. and Europe. Early results indicate that operational and maintenance costs could be 70 to 80 percent lower than those costs for internal combustion engines.

View a video that highlights more of my thoughts about the future of electric vehicles.

When you think about it, FedEx is more than a transportation business. We’re in the transformation business, making a positive difference in people’s lives every day. Imagine this scenario, which is now reality, thanks to innovative FedEx solutions.

As a patient waits for a spinal implant, a Kansas City surgical team and a spinal implant company collaboratively monitor the implant shipment’s temperature, light exposure and location all the way to the operating room. A SenseAware device, developed by FedEx and placed in the implant shipment, is a first-of-its-kind sensor-based information sharing service.

As part of this year’s Annual Report, we looked at trends in global trade and how they affect FedEx. It’s clear that we’ve reached a tipping point in how the world works. Did you know that the largest economy in the world is no longer the economy of any one country? It’s the economy of global trade of goods and services. Its value in 2010 was $18.3 trillion.

Driving the inexorable growth of world markets are these macroeconomic trends, which continue to grow:

• Production of high-tech and high-value-added goods is still on the rise.
• Global sourcing and selling are increasing.
• Supply chains are accelerating.
• E-commerce continues to expand.
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After a year of transition, this is a defining moment for FedEx. During 2011, an improved economy, robust customer demand and decisive actions to grow our business increased volumes and yields across all FedEx transportation segments. Revenues reached nearly $40 billion, a 13 percent year-over-year increase, and earnings per share grew more than 20 percent year over year. We are reaping the benefits of strategies we executed in tougher times.

I encourage you to visit our new Annual Report website to learn more about our momentum. You’ll find good news about global trade trends that drive our business. Read examples of how we’re making it even easier to access global markets. See how we’re systematically working to create a more secure energy future.