Local Freight Trucking Services Procurement Category Market Research Report from IBISWorld has Been Updated - WALB.com, Albany News, Weather, Sports

Local Freight Trucking Services Procurement Category Market Research Report from IBISWorld has Been Updated

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Moderate growth in consumer spending, industrial production and trade have heightened demand for local trucking; however, suppliers declining fuel costs, stable wages and high level of price-based competition have tempered price growth. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Local Freight Trucking Services in its growing collection of procurement category market research reports.

Los Angeles, CA (PRWEB) June 27, 2014

Local freight trucking services have a buyer power score of 3.9, indicating favorable market conditions for buyers. This market's fragmented structure provides buyers with significant leverage in negotiations. Hundreds of thousands of carriers serve this market, and their level of competition is high. Carriers compete largely on the bases of price, service and location. If incumbent carriers do not meet expectations, buyers can easily replace them due to the market's low specialization and high participation. Switching costs are therefore negligible for ad hoc shipping. They are also very low for contract shipping, as buyers can negotiate for termination clauses that allow for contract exit without financial penalty. Low switching costs bolster buyer power.

High supplier competition and trends in suppliers' two main input costs, wages and fuel, have created a favorable pricing environment for buyers of local freight trucking services. Stable wage costs during the three years to 2014 and a drop in fuel costs have relieved some of the upward pressure on market prices stemming from moderate demand growth. This demand growth is indicated by recent boosts in consumer spending, industrial production and trade. Growth in market participation has also mitigated upward pressure on price. The number of carriers serving this market has risen moderately over the past three years. Increased participation has kept price-based competition high despite rising demand. As such, prices have grown only mildly during the three years to 2014. Prices are forecast to grow at a slow rate during the three years to 2017, too, because recent market trends are expected to carry over to the next three years.

This market's low substitute availability detracts from buyer power, as local trucking services are necessary for the initial or final phase of transport for most goods. Buyers cannot leverage other transport modes in negotiations because other modes do not provide the last-mile service that trucks do. Also, risk in this market is largely linked to diesel costs, which are volatile. Fuel surcharges are universal in this market, but fortunately for buyers, they are only a minor portion of most carriers' total price. For more information, visit IBISWorlds Local Freight Trucking Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of local freight trucking services. This markets suppliers, also called carriers, provide trucking services within a metropolitan area. Their shipping routes are short enough to allow for same-day returns. This markets carriers transport general cargo, which is often palletized. They primarily use box trucks for transport. They are not specialized carriers, and they do not focus on refrigerated transport, automobile transport, intermodal container transport, oversize-load transport or the transport of bulk liquids or dry goods.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorlds procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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