The moving industry is one of the most interesting and diverse business conglomerates in the US. Unfortunately, the Great Recession of 2008 caused by the housing market has taken its toll. The moving industry was hit by a long downturn period. However, in the past few years, the moving industry has managed to recover. Considering the close ties between the two markets, this is an amazing achievement. Now would be a good time to take stock of the 2018 moving trends in the US, and make predictions for the future.
The moving industry today
When talking about 2018 moving trends in the US, it is important to know the basics of the American moving industry. First of all, it is a surprisingly diverse collection of businesses. The industry has more than 7000 companies, with more than 122,000 employees. Generally, these companies deal with moving services. Mostly it’s for household goods, and more rarely for office supplies.
While it seems logical that larger firms would be the majority in this transport industry, is that the case? Actually, no! Even though it contains some big corporations, most of the industry is really small businesses. Only 8.5% of the firms have more than a hundred employees. In contrast, 47% have fewer than 5 employees. As you can see, the moving industry is as diverse as the country itself. Also, recently, its annual revenue was more than $12 billion! This mostly comes from long-distance and local transport. Apart from that, a minor part is earned through storage and packing services.
Because most companies provide similar services, this is a very competitive market. Really, the difference in quality comes down to the smallest of details. In the past decade, the moving companies have been finding their place in the digital world. The Internet has changed this business as well, and today it’s the primary way of reaching customers. It’s safe to say that a quality online presence has become one of the most important aspects of this business.
Location and time trends
In every service industry, the needs of the customers come first. This is why it’s important to note how people have been migrating in order to understand 2018 moving trends. In other words, when and where are the customers moving? According to industry experts, the most customers are moving from:
- West Virginia
- New Jersey
- New York
These stats show Americans slowly moving to the Sunbelt states. This is logical, with Nevada, Florida, Utah, and Colorado showing big population growth in the past year. States like California, Arizona, and Georgia have also been growing faster than the national average. Seems like people are moving away from the Northeast, and with that NJ interstate movers will help a lot.
When it comes to timing, the moving industry has always shown a very specific trend. People prefer moving in the warmer months, and the moving industry is busiest from May to September. Also, the industry provides most household moving services at the end of every month. This is logical because that is when most leases expire. Lastly, most moving work is done during the weekends. That’s when the customers have free time and tend to schedule their relocation.
*Extra tip: If you need other options when moving from that area, hiring long distance NY movers would be a great idea.
Customer research is important for any service industry. If a company knows its customers, it will be well equipped to deal with their needs. When it comes to the moving industry, the digital age has changed how the business deals with customers. The Internet is the cheapest way to reach potential customers with products. Online, these are mostly professionals and millennials aged from 25 to 35 – early adopters of technologies.
While this is a great business opportunity, it also represents a problem. Recent data shows that all Americans, and especially millennials, are moving at lesser rates than ever before. Why are millennials relocating less than previous generations? Largely, it comes down to different motivations and opportunities. While previous generations strived towards homeownership, today that isn’t the case. Millennials are buying less property than any of their predecessors. It’s not just the question of goals – large student debts and rising lending restrictions are getting in the way.
Luckily, in the long term, this isn’t a reason for concern. Really, 2018 moving trends show that customers are still moving, just less than before. Close to 11% of Americans now relocate annually. This is a small number compared to about 20% of the population in the 1980s. However, it seems to be rising again. In the next five years, the number of people moving is predicted to constantly rise. In light of this, the professional moving industry has nothing to fear. And most importantly, the smaller customer base hasn’t affected corporate profits a lot.
2018 moving trends and the future
There are a number of fiscal trends influencing the future of the moving industry. Luckily, they all seem to point to a positive future outlook. First of all, there has been a steady rise in disposable income in the general workforce. The bigger incomes of the consumers and better housing market conditions mean more property purchases. The housing market is directly linked to the moving industry, so this will be a great benefit. Also, another boom is the recent drop in oil prices. For a transport industry, the price of oil dictates transport costs. So, cheaper oil will result in smaller transport costs for moving firms and thus bigger profits.
Aside from this, there are factors that span decades and are more long-term than 2018 moving trends. One of this is the trend of a relocation from rural areas to cities. It has been going on for centuries and is still very apparent. This has resulted in steadily rising metropolitan areas of major cities. For the moving industry, this will be a major source of growth and business expansion in the coming years and decades. Also, international moving is growing and becoming a bigger part of the business than ever before. If all goes well, the industry is on its way to reaching peak revenues from the past decade.