Fred Smith
There are a few names synonymous with Memphis, TN...names like Elvis and B.B. King that put Memphis on the map of American music. And there are a few organizations that shine a spotlight on the River City and provide abundantly for our city and nation alike. FedEx is perhaps the most globally recognized Memphis based company, employing over 200,000 people. The company’s founder and CEO, Fred Smith, has deep Mid-South roots and continues to be an inspiration to the city and a catalyst for its growth. His story is one of creativity and persistence.
A Legacy of Innovation
Smith was born in Marks, Mississippi on August 11, 1944, the son of a local entrepreneur. His father was the founder of the Dixie Greyhound Buslines, which became part of the Greyhound Buslines. Along with his eldest son, he also created a chain of restaurants that had franchises across the country. However, when the senior Smith died in 1948, his will withheld his childrens’ inheritances until they turned 21. He didn’t want them to squander their wealth and his greatest desire was that they would find their own way.
Fred Smith was born with a rare form of childhood arthritis and spent his first ten years in braces and on crutches. But his disability didn’t crush his naturally curious, entrepreneurial spirit. Smith became an amateur expert in the American Civil War as a young man and began flying crop duster planes by the time he was in high school. As he outgrew his arthritic condition, he discovered his athleticism and excelled both in sports and academics – at Presbyterian Day School in his younger years, at Memphis University Prep throughout his high school years. After graduation, he went on to Yale University and received a BA in Economics. It was at Yale where Smith wrote a business paper on a fictional company he had dreamt up...a company that delivered packages overnight to cities all over the country. His professor gave him a C on the paper, but the idea had inspired Smith. He was headed for greatness. But that greatness seemed to be interrupted by the Vietnam war.
Fred’s father and all three of his uncles had served in the military, so it seemed natural for him to join the Marines in 1966. He served for two tours during Vietnam, flying over two hundred ground support missions during his career. When he was honorably discharged three years later, Smith had earned a Silver Star, a Bronze Star, and two Purple Hearts. He returned to the Mid-South and was ready to start something new.
A New Way to Deliver
Smith’s experience in Vietnam had changed him but he was determined to move past the trauma. "I got so sick of destruction and blowing things up … that I came back determined to do something more constructive." (Current Biography Yearbook 2000). He remembered the old business paper he had written at Yale and decided to take a risk. Smith purchased the controlling interest in his father-in-law’s aviation business. Federal Express delivered 186 packages its first night of operation. It was networked with twenty-two cities. And it only grew exponentially from there.
Unstoppable Success
FedEx is truly a hallmark of modern business. In 1983, it became the first American corporation to garner $1 billion in profits within its first decade of operation and the company has continued to break records since then, proving Smith’s ingenuity and resilience. His motto follows the simple acronym P-S-P “People, Service, Profit”. By putting his employees first, he has created space for hundreds of thousands of Memphians to thrive while reinvesting in the city we love so much. In fact, it’s hard to imagine Memphis without Fred Smith and his FedEx.