Moving Companies
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 8,900 moving companies in the US provide packing, transportation, and storage services for used household and office goods to individuals and businesses. Firms may also offer warehousing and storage, packing, and special handling services or sell boxes, paper, bubble wrap, tape, and other packaging supplies for Do-It-Yourself (DIY) movers. In the moving industry, the carrier or van line operates as the transporter of household goods. The moving agent operates under contract with the carrier to manage the move.
Seasonal Demand
The moving and relocation business is highly seasonal and peaks during the summer when families like to move to avoid disrupting the school year.
Mobility Falls
The number of Americans who move has been mostly flat or on the decline for the last five years, with advances in technology creating remote working opportunities that eliminate the need for relocation.
Industry size & Structure
The average moving company operates out of a single location, employs about 11 workers, and generates about $2.1 million annually.
- The moving industry consists of about 8,900 companies that employ 100,000 workers and generate $19.3 billion annually.
- The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for over 40% of industry revenue.
- Large companies, which include UniGroup (United Van Lines, Mayflower), SIRVA (Allied, North American Van Lines, Global), and Atlas, may have global operations.
- Companies that provide long-distance move services account for 32% of firms and 64% of revenue. Companies that provide local move and storage services account for 69% of firms and 36% of revenue.
- About 40% of firms generate less than $500,000 annually.
- The industry includes van lines, van line agents, and independent movers.
Industry Forecast
Moving Companies Industry Growth
Recent Developments
Sep 23, 2024 - Federal Reserve Cuts Interest Rates
- At its meeting in September, the Federal Reserve voted to reduce interest rates by half a percentage point, which would put the benchmark federal funds rate between 4.75% and 5%, according to The Wall Street Journal. Projections of fed officials’ moves suggest another four quarter-point cuts will come next year, which would bring the federal funds rate down to 3.5% by the end of 2025. However, it’s unclear to what extent September’s cut will affect housing demand. Mortgage applications were flat year-over-year in September. Meanwhile, for the week ending September 19, the average fixed-rate 30-year mortgage rate was 6.09%, down from 7.19% a year earlier, according to Freddie Mac. Even as mortgage rates have dropped, high home prices and other costs, including homeowner insurance, continue to weigh on affordability.
- Sales of existing US homes decreased by 2.5% in August from July and were down 4.2% year-over-year, according to the National Association of Realtors (NAR). Median existing home prices moderated from July’s all-time high, but August’s median home price rose 3.1% to $416,700 compared to August 2023. NAR chief economist Lawrence Yun said, “Home sales were disappointing again in August, but the recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in future months.”
- Home builder confidence in the single-family market improved in September amid moderating mortgage interest rates, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), rose two points to 41 in July 2024. Any HMI reading over 50 indicates that more builders see conditions as good than poor. September’s gain in the HMI followed four consecutive months of declines. The HMI survey also showed that 32% of builders have reduced home prices to lure potential buyers off the sidelines, although the average price reduction of 5% was the lowest since July 2022. However, while the Fed’s recent rate cut will reduce the cost of land development and construction loans, builders are seeing increased competition from existing home listings in some markets.
- Amid high interest rates and home prices, many homeowners who locked in a low mortgage rate before rates began rising are finding themselves stuck if they wish to move, according to The Wall Street Journal. About two-thirds of all outstanding US mortgages have a rate lower than 4%, according to Morgan Stanley. To move, homeowners must abandon their low rate and take on a fresh mortgage when current rates are near 7%. In a study by economists at UC Berkeley and the University of California Irvine, the lock-in effect of higher mortgage rates discouraged an estimated 660,000 moves to a new zip code over the course of a year through June 2024.
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