Moving Companies

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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

                              Coronavirus Update

                              Jun 23, 2022 - Rising Interest Rates, Home Prices Slow Housing Market
                              • A slowdown of the US housing market may reduce demand for moving services. Single-family building permitting activity fell 5.5% in May compared to the prior month and was down 7.9% year over year, according to the US Department of Commerce. According to the National Association of Realtors (NAR), sales of previously-owned homes fell 3.4% month over month and 8.6% year over year in May 2022. The median existing-home price for all housing types increased 14.8% year over year to $407,600. "Further sales declines should be expected in the upcoming months given housing affordability challenges from the sharp rise in mortgage rates this year," said Lawrence Yun, NAR's chief economist. "Nonetheless, homes priced appropriately are selling quickly, and inventory levels still need to rise substantially – almost doubling – to cool home price appreciation and provide more options for home buyers.”
                              • While millennials tended to move out of large cities, younger, affluent people may begin to move to urban areas now that pandemic conditions are easing. In early 2022, demand for rental apartments in cities has been stronger than expected, according to Richard Barkham, head of Americas Research at real estate firm CBRE. Even cities that saw many people leave earlier in the pandemic, including New York and San Francisco, could see a new influx of movers later in 2022.
                              • Shifting population patterns that were trending before the pandemic gained steam during the health crisis, which could affect future moving demand trends. More than two-thirds of large urban counties saw their populations shrink in 2021, according to the analysis of US government data by the Economic Innovation Group (EIG). This change is thought to have in part been caused by the large increase in working from home and a decline in immigration. About 80% of exurban communities (populations under 50,000 with at least 25% of the population in a large or medium-sized suburb and within a large metro area of 500,000 or more) gained in population in 2021. While exurban and rural areas saw strong growth, the number of suburbs that grew in 2021 declined.
                              • Moving companies are likely to benefit if employees who avoided switching jobs during the coronavirus pandemic begin to consider employment changes when the pandemic wanes. Analysts say that workers are seeking a wider array of remote work options, better chances for promotions, and bigger paychecks. Workers who are in entirely in-person office roles are three times more likely to say they will “definitely” look for a new job in the coming year, according to a recent Future Forum Pulse survey.
                              • Homebuilder sentiment, as measured by the National Association of Home Builders/Wells Fargo Housing Market Index, decreased to 67 in June 2022 from 69 in May, marking the sixth consecutive monthly decline. Higher mortgage rates and inflation have unsettled the US housing market, especially for potential first-time homebuyers. In addition to weaker demand, higher input costs pressure the supply side. Builders are taking a more cautious stance as demand weakens amid rising interest rates.
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