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 7,900 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 13 workers, and generates about $2.4 million annually.
- The moving industry consists of about 7,900 companies that employ 105,400 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
Mar 21, 2024 - Wage Growth Outruns Pricing
- Moving companies may face higher operating costs as the industry’s pricing power weakens. In Q4, producer prices charged by used household goods and office goods moving firms declined slightly compared to the same period in 2022. Meanwhile, moving company wages increased moderately year-over-year. If moving company pricing fails to keep pace with rising labor costs, margins could suffer. Moving company employment in the fourth quarter of 2023 was down slightly compared to Q4 2022.
- Sales of existing US homes, a demand driver for moving services, increased by 9.5% in February from January but were down 3.3% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "Additional housing supply is helping to satisfy market demand. Housing demand has been on a steady rise due to population and job growth, though the actual timing of purchases will be determined by prevailing mortgage rates and wider inventory choices."
- Mortgage applications for newly built homes increased by 15.7% in February 2024 compared to the same month a year earlier, according to the Mortgage Bankers Association (MBA). February’s new home applications were up 1% over the prior month. The MBA’s Vice President and Deputy Chief Economist Joel Kan said, “New home purchase activity in February was slightly hampered by the rise in mortgage rates over the month. However, homebuyers kept up their demand despite how competitive the purchase market still is.” The average loan size was almost $406,000, marking the highest level since March 2023 but below the record high of $436,000 set in April 2022.
- A lack of affordability in the US housing market could put downward pressure on demand for moving services as more households decide to stay put. Just 15.5% of homes listed for sale in 2023 were affordable for the typical US household, according to Redfin. The overall number of listings in 2023 declined 21.2% compared to 2022, but the drop in affordable home selection was also due to high interest rates and elevated home prices. There are also fewer homes on the market as homeowners who locked in a mortgage when rates were cheap are reluctant to sell, and a shortage of available inventory has contributed to rising home prices. However, conditions are expected to improve in 2024. Redfin’s Senior Economist Elijah de Campa said, “Many of the factors that made 2023 the least affordable year for homebuying on record are easing. Mortgage rates are under 7% for the first time in months, home price growth is slowing as lower rates prompt more people to list their homes, and overall inflation continues to cool.”
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