Market Analysis for The Moving & Relocation Industry
According to the latest census data, 9.8% of Americans relocate in a year and the moving industry is estimated to be worth $ 86 Billion in revenue.
A portion of the population usually move by themselves, but there are those who look to the industry for help, giving rise to jobs like agents, forwarders, independent carriers, international movers, suppliers and van lines.
Industry analysis and trends are a great way to predict the market for current and future investors in the moving and relocation industry.
Relocation Industry Analysis
Threats of Potential Entrants
The legal hurdles of getting into the industry are not high, but many entrants are pushed away by the huge capital investment required.
To start a relocation investment, you will need to purchase at least one moving truck/van and a few basic items like moving boxes, furniture belts, rope, packing and wrapping material etc. Branding and marketing will also take a huge part of the budget.
Bargaining Power of Buyers
Buyers in the industry have little bargaining power, which makes it attractive to invest in.
The relocation industry is dominated by large corporations that have set and non-bargainable rates, and only a few smaller companies that can offer cheaper prices. The standard rates of $ 25 to $ 30 per hour across most moving companies.
There are also usually a small number of movers in any area, further reducing the buyer’s bargaining power.
Bargaining Power of Suppliers
There are basically no main suppliers in the industry.
Suppliers of vehicles, packing material and marketing services offer their services across industries so their bargaining power is not affected by the moving industry.
This increases the attractiveness of the industry to investors.
Threat of Substitutes
The only substitute to the services offered by the industry players is when the clients decide to move by themselves. However, more people are beginning to use the relocation services from the movers since the moving process is tiring and inconvenient.
Intensity of Industry Rivalry
Most moving companies operate within a given area, so the intensity of rivalry is usually based on the number of moving companies in a region. For the most part, moving companies are usually concentrated in the urban areas with only a few in the rural areas.
Starting a moving company where there are one or two more requires more market research to determine the levels of satisfaction of your competitor’s clients.
Some crucial trends in the relocation industry include;
Only 37% of millennials own their own houses, compared to 56% of baby boomers in 1981. Renting increases the demand for moving services.
80% of millenials are willing to take a paycut to move to their dream location.
Summer is the most popular season to move, and weekends the most preferred moving days.
Most American move to locations within their state.
Moving and Relocation Industry Trends And Analysis
If you have or you are interested in investing in the moving industry, trends and industry analysis can be a useful tool to predict the market.
The market information above can then be helpful in making your investment decision.