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LTL Industry Analysis
The power of suppliers
Supplier in this industry: Labor, truck manufacturing, and fuel
The power of the suppliers in this industry is relatively high because of the inability to control these suppliers. In the case of labor the unions frequently battle the companies for higher wages and benefits. These unions also set up cripple companies who use union workers as their main labor force. These unions have high power since the companies are dependent on their workers. With truck manufacturing the companies usually get little to no discounts on the trucks so their power is relatively low. Fuel, on the other hand, has a high impact on this industry. If the cost of the fuel rises significantly, the profits of the LTL companies would shrivel up because of the necessarily to pay at any cost.
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