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 7,700 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 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 13 workers, and generates about $2 million annually.

    • The moving industry consists of about 7,700 companies that employ almost 99,000 workers and generate between $15 billion and $16 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
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Mar 23, 2023 - Banking Jitters Push Mortgage Rates Lower
                              • Mortgage rates dipped slightly after the collapse of Silicon Valley Bank, but housing industry watchers are uncertain if lower rates will persist long enough to provide much relief from the affordability issues that have slowed the US housing market, according to Yahoo Finance. Some financial market watchers note that the banking sector's jitters could slow the Federal Reserve’s strategy of taming inflation with rate hikes. Redfin chief economist Daryl Fairweather told Yahoo Finance, “There's still a lot of uncertainty, but in the near term, I do expect mortgage rates to drop. And I expect buyers to take advantage of those mortgage rates because we've seen buyers be incredibly sensitive to those interest rates.” However, some industry insiders suggest that rates would need to drop and stay low for a sustained period to lure more buyers into the market.
                              • Tight existing home inventories are pushing buyers into the new home market, which helped move home builder confidence higher in March, 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 44 in March 2022 2022, although the HMI remained in bearish territory. Any HMI reading over 50 indicates that more builders see conditions as good than poor. While stress in the US financial system pushed mortgage interest rates down, affordability is still a significant roadblock to homeownership for many. The NAHB said a side effect of the increased pressure on regional banks would be a further tightening of acquisition, development, and construction (AD&C) loans for home builders.
                              • Sales of existing US homes, a demand driver for moving services, increased by 14.5% in February from January but were down 22.6% year over year, according to the National Association of Realtors (NAR). February’s results snapped a 12-month streak of declines in existing home sales and were the strongest month-over-month gain since July 2020. NAR chief economist Lawrence Yun said, “Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines. Moreover, we're seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs." Yun added, "Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties."
                              • A recent survey by housing blog site Home Bay questioned consumers about their moving experiences in 2022, which could suggest moving trends for 2023. Last year, the most popular state people moved to was Florida, followed by Texas and North Carolina. California topped the list of states people moved from, followed by New York and Illinois. Among people who moved in the previous year, 43% said working with a mover was easier than doing it oneself; 40% said hiring movers saved time. About 43% of respondents said they were surprised by the costs of moving. However, of those who hired movers, only 56% said the process was stressful compared to 68% for people who didn’t hire movers.
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