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

                              Nov 29, 2022 - Rising Interest Rates, Inflation Reduce Housing Affordability
                              • US housing affordability fell to its lowest point since the Great Recession in the third quarter of 2022 amid rising mortgage rates, inflation, low housing inventory, and high home prices, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI). Only 42.2% of new and existing homes sold between July 2022 and the end of September were affordable for households with a median income of $90,000. The third quarter of 2022 marked the second consecutive quarterly record low for housing affordability in more than 10 years. According to the HOI, the median home price in Q3 2022 was $380,000, down from the all-time high of $390,000 set in Q2 2022.
                              • Building permits, housing starts, and housing completions are indicators of future moving services demand. The number of building permits issued for privately-owned housing units decreased 2.4% month over month and declined 10.1 year over year in October 2022. Housing starts fell 4.2% month over month and decreased 8.8% year over year in October. Housing completions fell 6.4% month over month but rose 6.6% year over year in October.
                              • The number of household formations, a demand driver for moving services, rose 0.4% to 128,667 in September 2022 compared to the previous month, according to the Federal Reserve Bank of St. Louis (FRED). On a year-over-year basis, housing formations in September were up nearly 1%.
                              • US mortgage applications for new home purchases fell 28.6% in October compared to a year earlier, according to the Mortgage Bankers Association (MBA). New home mortgage applications were down 13% from September. The 30-year conforming rate for mortgages hit 6.81, marking the highest rate since 2006. The MBA’s Chief Economist said, “New home purchase activity weakened on a monthly and annualized basis in October, as the sharp jump in mortgage rates to nearly 7% reduced both overall demand and the purchasing power for many prospective buyers.”
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