Generating supply-chain value
Norfolk Southern is a critical link in the U.S. commercial freight supply chain. Customers that rely on NS to safely and efficiently move their goods to market are a critical part of the railroad’s value chain. Important to NS’ business success as well are thousands of companies that supply diesel fuel, equipment, materials, and a multitude of services the railroad needs for daily operations as a transportation services company.
In 2015, NS distributed $4.05 billion into the economy to purchase goods and services from 6,717 suppliers. Five suppliers accounted for nearly 20 percent of the total spend. Two supplied NS with diesel fuel, while the other three provided things such as locomotives and locomotive parts, freight cars and car parts, roadway track equipment, and engineering services.
NS purchased $217 million in goods from minority- and women-owned business suppliers in 2015, a 7 percent increase over the $203 million spent in 2014. The total includes $157 million for women-owned businesses, $13 million for small businesses, $8.7 million for black-owned businesses, nearly $7 million for Asian-owned businesses, nearly $6 million for Hispanic-owned businesses, and $19 million for Labor Surplus Area businesses. LSA businesses are in localities designated by the U.S. Department of Labor as areas of high unemployment, where the goal of the federal program is to strengthen the nation’s economy by providing these communities with economic opportunities.