Moving Services in The US Industry Report

WWW.IBISWORLD.
COM Moving Services in the USNovember 2016 1
Moving forward: The industry will benefit from

rising home sales and housing starts
This report was provided to
Wise Business Plans (212385509)
by IBISWorld on 22 April 2017 in accordance with their license agreement with IBISWorld
IBISWorld Industry Report 48421

Moving Services in the US
November 2016 Darshan Kalyani
2 About this Industry 16 International Trade 30 Industry Assistance

2 Industry Definition 17 Business Locations
2 Main Activities 32 Key Statistics
2 Similar Industries 19 Competitive Landscape 32 Industry Data
2 Additional Resources 19 Market Share Concentration 32 Annual Change
19 Key Success Factors 32 Key Ratios
3 Industry at a Glance 19 Cost Structure Benchmarks
21 Basis of Competition 33 Jargon & Glossary
4 Industry Performance 22 Barriers to Entry
4 Executive Summary 22 Industry Globalization
4 Key External Drivers
6 Current Performance 23 Major Companies
8 Industry Outlook 23 UniGroup Inc.
10 Industry Life Cycle 24 SIRVA Inc.
12 Products & Markets 28 Operating Conditions

12 Supply Chains 28 Capital Intensity
12 Products & Services 29 Technology & Systems
13 Demand Determinants 29 Revenue Volatility
15 Major Markets 30 Regulation & Policy
www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

WWW.IBISWORLD.COM Moving Services in the USNovember 2016 2
About this Industry
Industry Definition Companies in this industry provide institutional and commercial goods,
moving and relocation services, including furniture and equipment. Industry
local, long-distance and international operators often provide incidental
trucking and shipping of used household, packing and storage services.
Main Activities The primary activities of this industry are

Used furniture moving
Used household-goods moving
Used office-goods moving
Providing storage services for moved goods
The major products and services in this industry are

Commercial moving
Residential moving
Warehousing services
Similar Industries 48211 Rail Transportation in the US

Operators in this industry provide long-distance transportation by rail.
48411 Local Freight Trucking in the US

Operators in the industry provide local general freight trucking.
48423 Tank & Refrigeration Trucking in the US

Operators in this industry provide long-distance specialized freight (except used goods) trucking.
56211 Waste Collection Services in the US

Operators in the industry provide waste collection services.
Additional Resources For additional information on this industry

www.atlasworldgroupinc.com
Atlas World Group
www.ttnews.com
Transport Topics Online
www.census.gov
US Census Bureau
Provided to: Wise Business Plans (212385509) | 22 April 2017

WWW.IBISWORLD.COM Moving Services in the US November 2016 3
Industry at a Glance
Moving Services in 2016
Key Statistics Revenue Annual Growth 11-16 Annual Growth 16-21

Snapshot
$17.1bn 3.0% 1.2%
Profit Wages Businesses
$1.5bn $3.6bn 14,845

Revenue vs. employment growth House price index
Market Share
UniGroup Inc. 10 220
9.4% 5 200
SIRVA Inc.
0
180
% change
7.3%
Index
-5
160
-10
-15 140
-20 120
Year 08 10 12 14 16 18 20 22 Year 08 10 12 14 16 18 20 22
Revenue Employment
SOURCE: WWW.IBISWORLD.COM
p. 23
Products and services segmentation (2016)
Key External Drivers 10.7%

House price index
Existing home sales
30-year conventional 12.1%
mortgage rate Other
Housing starts
Per capita disposable
income
16.4%
Commercial moving 60.8%
Residential moving
p. 4
SOURCE:
WWW.IBISWORLD.COM
Industry Structure Life Cycle Stage Mature Regulation Level Medium

Revenue Volatility Low Technology Change Medium
Capital Intensity Low Barriers to Entry Medium
Industry Assistance Low Industry Globalization Low
Concentration Level Low Competition Level High
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 32

Industry Performance
Executive Summary | Key External Drivers | Current Performance
Industry Outlook | Life Cycle Stage
Executive The Moving Services industry has sales and housing starts and
Summary returned to growth over the past five stimulating demand for moving
years as the housing market continues to services. Corporate expansion also
recover from the downturn. Despite slow encourages industry growth, as
economic recovery, a number of housing businesses require furniture and
market indicators suggest gains in the equipment transportation when
industry’s principal market. Coupled with relocating their offices and opening
rising disposable income, more favorable new ones. Meanwhile, profitability has
housing market conditions and a recent improved considerably over the past
drop in oil prices have benefited the five years as a result of rising demand
Moving Services industry. Over the five for moving services as well as lower
years to 2016, industry revenue is fuel costs.
expected to increase at an annualized rate Over the five years to 2021, housing
market growth will continue to benefit
industry operators. Although mortgage
The
recovering housing market will prove rates are projected to increase as the
economy recovers, decreasing
beneficial for industry operators unemployment and rising disposable
income will stimulate demand for
of 3.0% to $17.1 billion, including a 1.9% housing and rental agreements.
increase in 2016. Metropolitan areas are expected to
The industry’s growth over the past continue to be the most active areas for
five years is due in part to a recovery moving services, with large populations
from the low it faced after the collapse and shuffling tenants maintaining
of housing prices. The housing market demand for industry services. Housing
crisis hit the industry particularly starts and home sales are anticipated to
hard, with consecutive revenue loss in grow during the five-year period, leading
the years prior to the period. Even in to increased demand for moving services
2016, the industry has yet to reach the from residential consumers as well. Over
peak revenue levels achieved in the the five years to 2021, IBISWorld
mid-2000s. The industry showed signs anticipates that industry revenue will
of recovery in 2011 when mortgage grow at an annualized rate of 1.2% to
rates continued to fall, fueling home $18.1 billion.
Key External Drivers House price index sales increase, homeowners require this
Housing prices generally increase when industry’s services to move into new
demand for housing is strong, but prices homes. As a result, industry revenue
that are too high can deter consumers from increases when existing home sales grow.
moving into more expensive homes, even In 2016, existing home sales are expected
when the value of their own home may rise. to increase, representing a potential
Strong housing demand typically improves opportunity for this industry.
demand for moving services. The house
price index is expected to increase in 2016. 30-year conventional mortgage rate
The 30-year conventional mortgage is the
Existing home sales most common type of loan for home
Existing home sales measure the sales of purchases. When mortgage rates are low,
residential property. When existing home consumers can obtain loans to purchase

Key External Drivers homes at more affordable rates. As also indicates that consumers are
continued consumers purchase homes, demand for financially stable and more willing to
moving services will grow, bolstering spend on moving services. Housing starts
industry revenue. The 30-year are expected to increase in 2016.
conventional mortgage rate is expected to
decrease in 2016, but its volatility could Per capita disposable income
pose a threat to the industry. When disposable income is high,
households are more likely to spend on
Housing starts convenient services, which leads to
A higher level of housing starts translates higher demand for moving services. As a
to greater demand for moving services. result, increasing disposable income
Consumers demand industry services to benefits industry revenue growth. Per
move possessions from their old capita disposable income is expected to
residences to new ones. Housing starts increase in 2016.
House price index Existing home sales
220 7
200
6
180
Millions
Index
5
160
4
140
120 3
Year 08 10 12 14 16 18 20 22 Year 08 10 12 14 16 18 20 22

Current The Moving Services industry recovered

as a result of improving macroeconomic Industry revenue
Performance conditions and a more buoyant housing
10
market. After consecutive years of
revenue loss, the industry began to 5
improve in 2011, when declining 0
mortgage rates and improved credit
% change
spurred housing starts and residential -5
demand for moving services. IBISWorld -10
expects industry revenue to expand at an
annualized rate of 3.0% to $17.1 billion -15
over the five years to 2016. -20
Despite growth over the past five years, Year 08 10 12 14 16 18 20 22
industry revenue remains below the
levels it reached during the mid-2000s. SOURCE: WWW.IBISWORLD.COM
The Moving Services industry was hit

particularly hard by the housing crisis, demonstrates the industry’s dependence
leading to consecutive revenue loss in the on the housing market, as well as levels
years prior to 2011. Such loss of per capita disposable income.
Downstream markets A number of housing market indices and send employees to new locations as a
show signs of gains suggest an ongoing recovery since the means of expanding. Over the five years
market collapse that rocked the global to 2016, corporate profit is expected to
economy. Over the five years to 2016, increase. Despite a steep decline in 2008,
IBISWorld expects housing starts to grow corporate profit rose significantly after
at an annualized rate of 14.2%, though the downturn as companies slashed
they remain below the aggregate levels expenses, including wages, and found
achieved prior to the downturn. ways to downsize while preserving
Similarly, the value of residential revenue. Additionally, US-based
construction is anticipated to grow multinational companies have recorded
strongly over the five years to 2016; the particularly strong profit margins,
housing price index is expected to rise as benefiting from strong growth from
well. Recovery in the housing market has developing markets. As a result, demand
positively affected industry operators, as from businesses has increased over the
demand for moving services rises past five years. The 2015 Corporate
alongside renewed housing activity. In Relocation Survey, compiled by major
2016, IBISWorld expects industry player Atlas World Group, indicates that
revenue to increase by 1.9%. operators are more optimistic about
Businesses are the industry’s second- demand for relocation services and that
largest market segment. Demand from demand is nearing pre-downturn highs.
businesses has been weak in recent years, Furthermore, nearly half of the
but with corporate profit on the rise, this companies surveyed indicated that they
market is poised to recover. When expect an uptick in the number of
business sentiment and corporate profit corporate employee relocations in 2015.
are healthy, businesses are more likely to This will further help increase revenue
use third-party suppliers to move offices for operators in the industry.

Profit turnaround This industry’s performance is closely

linked to the real estate market and often Therecent profit
follows trends in housing construction, as
individuals moving to new residences are
recovery has provided
a major driver of demand. The worst an incentive for some
years for housing starts over the past companies to expand
decade occurred between 2006 and
2009, the pinnacle of the housing crisis.
Consequently, those were also the worst other operators offering comparable
years for industry revenue. As revenue services; this leaves more revenue for
declined and costs remained high, profit. With slowly improving housing
especially those related to fuel, market and consumer conditions,
warehousing and repair, operators’ profit demand for industry services has
margins fell. These discouraging years increased and further expanded profit
led to a large percentage of movers margins. In 2016, industry profit is
leaving the industry. The number of estimated to reach 9.0% of revenue.
industry operators is expected to increase The recent profit recovery has provided
at an annualized rate of 1.8% over the five an incentive for some companies to
years to 2016, but will remain below expand. With many operators looking to
levels achieved in earlier years. sell or shut down, larger companies saw
Additionally, weak demand has forced the slowing industry as an opportunity to
many companies to offer reduced rates to purchase small companies and their
customers, thereby further reducing operations at a lower cost. Over the five
profit margins. years to 2016, the number of industry
Profit margins have fluctuated over the establishments is expected to increase at
five years to 2016, but have increased as an annualized rate of 1.6% to 15,634. It is
the remaining operators benefit from a very difficult for smaller companies to
shrinking industry size and the recent compete against the larger players that
drop in oil prices. While fewer businesses benefit from economies of scale,
negatively affects industry-wide revenue, diversified service offerings and the
individual operator’s profit benefits from financial ability for widespread marketing.
less competition. Without fellow The number of industry employees is
businesses to compete with on the basis expected to increase an annualized 2.8%
of price, operators do not have to keep to total 103,865 workers over the five
prices low to appeal to customers over years to 2016.

Industry Private investment and stronger growth in

the real estate sector will push the Moving
improved demand, IBISWorld anticipates
that industry revenue will increase at an
Outlook Services industry to continue growing in annualized rate of 1.2% over the five years
2017, with industry revenue projected to to 2021, totaling $18.1 billion. While this is
increase 2.1% over the year. Commercial promising for the industry after several
construction is forecast to experience years of relatively stagnant growth,
strong growth in 2017, benefiting demand revenue is not anticipated to reach
for moving services. As a result of pre-2006 levels any time soon.
Downstream markets Over the five years to 2021, the domestic

slowly improve economy is expected to continue to The
growing size of major
regain some of the momentum lost
during the downturn, albeit slowly and
metropolitan cities is
with some hardship along the way. expected to add to demand
Housing prices are anticipated to slowly for moving services
increase over the next five years, while
unemployment levels experience a slow
decline coupled with weak wage growth, metropolitan areas gives moving
which will stymie consumer spending. companies the assurance that there will
While new residential construction be a consistent supply of customers.
spending is projected to grow strongly as While moving to an apartment without
prices stabilize, commercial construction the help of a moving service can often be
is forecast to grow more slowly. This lag easier than moving into a new house,
in recovery is typical of commercial renters typically relocate more often
construction, as projects are larger and than homeowners and may prefer a
have longer lead times, resulting in service to help with moving furniture
delays between the latest economic upstairs or driving through an urban
developments and the level of area. In fact, many urban residents do
construction activity. Nonetheless, both not own a car, and therefore may elect to
are anticipated to grow considerably over use a full-service mover as an added
the five-year period, bolstering demand convenience rather than renting and
for moving services. driving a strange vehicle. Over the next
While it is difficult to measure five years, the growing size of major
whether movers gain more business metropolitan cities is expected to add to
from moving tenants or homeowners, demand for moving services within
the number of people in major these areas.
Consolidation Despite improved demand for services, improved conditions will be sustained.
continues establishment numbers are projected to The acquisitions of smaller companies,
grow slowly at an annualized 0.3% to as well as further market domination
15,834 locations over the next five from regionally powerful companies, is
years. Establishment numbers typically expected to contribute to the dissuasion
lag behind market condition changes for new names to enter the industry.
because it takes time for potential new While new ideas and business models
operators to make certain that that aim to keep costs low for

Consolidation consumers are successful at first, it is even larger and have more available
continues difficult to stay in business long enough downstream markets. As demand picks
to turn a profit that can compete with up, large companies are also
continued
larger players. Some of the bigger anticipated to hire more workers to
companies also offer cross-country keep up with demand. Over the five
moving services, which, through the years to 2021, employment is forecast
acquisition of companies from different to increase at an annualized rate of
regions, allows a company to become 0.7% to 107,305 people.
Potential risks Several trends may adversely affect

industry operators over the next five Projected
growth in
years, such as economic growth, the mortgage rates may
international price of fuel and union
wage demands. Purchasing, leasing or constrain demand recovery
releasing trucks and other equipment
may be hampered by reduced access to freelance workers with niche expertise
debt and equity capital markets and the directly to customers. For example, with
ability to draw down funds under the advent of services such as
financing agreements. Projected growth TaskRabbit, customers can access
in mortgage rates could also constrain immediate help with tasks such as
demand recovery, with fewer households moving and packing. These services are
choosing to move. In addition, easily accessible via mobile applications
competition from other companies, such and have benefits such as ease of pay,
as nonspecialist transport shippers (some while also offering competitive pricing
of which have large financial resources options compared with traditional
and self-service house removals), will be moving companies. As the industry’s
of concern to industry players operating biggest market constitutes household
in parallel markets with such substitutes. customers, e-commerce marketplaces
Furthermore, operators in the industry could pose a threat within this market
will face an elevated threat from segment to industry revenue in the next
e-commerce platforms that connect five years.

Life Cycle Stage Growth in industry value added will be slow
Technology is aimed at increasing efficiency
There is wholehearted market acceptance
of the industry’s services
20 Maturity Quality Growth

% Growth in share of economy
Key Features of a Mature Industry

Company High growth in economic
consolidation; importance; weaker companies Revenue grows at same pace as economy
level of economic close down; developed Company numbers stabilize; M&A stage
importance stable technology and markets Established technology & processes
Total market acceptance of product & brand
15 Rationalization of low margin products & brands
10
Quantity Growth
Many new companies;
minor growth in economic
Home Builders importance; substantial
5 technology change
Apartment & Condominium Construction
Truck, Trailer & Motor Home Manufacturing
Moving Services
Local Freight Trucking
0
Rail Transportation
-5 Decline
Shrinking economic
importance
-10
-10 -5 0 5 10 15 20
% Growth in number of establishments
SOURCE: WWW.IBISWORLD.COM.AU

Industry Life Cycle The Moving Services industry is in the Industry services are well defined and
mature stage of its life cycle. In the 10 years segmented. Operators provide
to 2021, industry value added, which comprehensive moving services for
Thisindustry measures the industry’s contribution to the consumers, businesses and government
is M
ature overall economy, is projected to increase at agencies. Some operators also offer
an annualized rate of 2.4%. Over the same moving services for specialty goods,
period, US GDP is anticipated to grow an such as artwork, fitness machines and
annualized 2.1%. As a result, the industry’s other large or fragile goods.
importance to the economy is relatively Technological development has focused
stable, which suggests that the industry is on improving efficiency rather than
mature. Barriers to entry are moderate, but introducing new products and services.
competition is high. Larger companies have For instance, technological change has
been acquiring smaller moving operations, focused on more fuel-efficient vehicles.
contributing to faster establishment growth Overall, downstream demand for
in comparison with the number of moving services is consistent. As long as
enterprises. This consolidation is also sign of residential transactions occur, there will
a mature industry. be demand for moving services.

Products & Markets

Supply Chain | Products & Services | Demand Determinants
Major Markets | International Trade | Business Locations
Supply Chain KEY BUYING INDUSTRIES

23611a Home Builders in the US
Households are a large market segment for the industry and demand tends to correlate with
home building levels.
23611b Apartment & Condominium Construction in the US
Household demand for moving services is dependent on home construction activity.
23622a Commercial Building Construction in the US
Corporate office relocations make a significant contribution to revenue. Demand for these
services is correlated to activity in commercial building construction.
33721 Office Furniture Manufacturing in the US
This industry uses moving services to delivery furniture to clients.
42321 Furniture Wholesaling in the US
Wholesalers in this industry demand services to deliver furniture to customers.
52 Finance and Insurance in the US
This industry requires file and record storage, office removals and employee relocation.
92 Public Administration in the US
This industry requires moving services for relocation of government employees.
KEY SELLING INDUSTRIES

33621 Truck, Trailer & Motor Home Manufacturing in the US
Manufacturers in this industry provide trucks and trailers to the Moving Services industry.
42311 Automobile Wholesaling in the US
Automobile wholesalers supply vehicles to the industry.
42312 Auto Parts Wholesaling in the US
This industry supplies vehicles and parts for vehicles used by movers.
Products & Services Industry operators provide move less than 200 miles. The residential
comprehensive moving services for all moving segment declined due to the
downstream customers, including housing crisis, resulting in a sharp
general moving, storage and moving decline in consumer demand for housing.
specialty products. While the housing market has improved
over the past two years, residential
Residential moving moving remains below predownturn
Residential moving, which includes local levels. IBISWorld estimates that his
and long-distance moving, is this service segments’ share of industry
industry’s primary service. Long-distance revenue has slightly decreased over the
moving involves the movement of goods past five years, due to rising market share
on an inter-urban, interstate and of commercial moving services. In 2016,
international basis. Moving companies this service segment is estimated to
typically use a one- to three-member generate 60.8% of industry revenue.
team to pack and move goods. Most
carriers to offer long distance-services Commercial moving
often have links across the country that Industry operators provide commercial
arrange return cargo or staff to help moving services for businesses and
drivers unload. Local moving is typically government entities. This includes the
provided for customers that want to relocation of offices and businesses that

Products & Markets
Products & Services Products and services segmentation (2016)

continued
10.7%
12.1%
Other
16.4%
Commercial moving 60.8%
Residential moving
Total $17.1bn SOURCE: WWW.IBISWORLD.COM
vary in size from large scale corporations to market, and purchase establishments
local shops. The prices that industry within close proximity to both travel hubs
operators can charge within this service and the market. Individuals will have
segment is dependent on the size and scale demand storage for a variety of reasons,
of equipment or furniture that needs to be including if they have moved to a smaller
moved, along with any labor associated with residence, are traveling abroad for an
the breakdown and set up of equipment. extended period, or if there is a timing
Over the past five years, commercial difference between ending a lease and
moving’s share of revenue has increased due beginning another. Commercial customers
to the private sector’s recovery from the may use warehousing services to store
downturn and rising corporate profit. In equipment, inventory or nonsecure files
2016, commercial moving is expected to and records. This service segment has
account for 16.4% of industry revenue. increased over the past five years and is
generally a high-margin service for the
Warehousing services Moving Services industry.
An estimated 10.7% of revenue comes from
contracted warehousing services that Other
includes handling, storage and packing Industry operators can provide specialty
services for goods. Many larger industry moving services for goods like historical
operators have warehouse spaces in artifacts, artwork, vehicles and livestock,
nonurban or suburban areas where they which require special handling at an added
provide storage sites for contract or cost. Revenue for specialty goods has
individuals. Some operators who specialize remained relatively constant over the past
within a metropolitan area will aim to be five years. In 2016, this service segment is
the primary provider within their local expected to account for 12.1% of revenue.
Demand Demand for moving services comes from filing storage or management of
Determinants private individuals and businesses. The employee relocation. Generally, demand
latter may need industry services to is determined by the number of home or
facilitate office relocation, equipment and office moves made by individuals and

Products & Markets
Demand businesses, the distance of the move and indicates weak movement activity by
Determinants the anticipated time gap between moving individuals and, consequently, poor
out and moving in (which may demand for moving services.
continued
necessitate warehousing services). When the housing bubble burst and
Positive economic growth generally financial markets collapsed in 2008, the
increases the movement of individuals Federal Reserve almost depleted interest
and companies, as growing income result rates altogether. Foreclosed homes
in greater home purchases and corporate flooded the market, causing housing
confidence. The slowing economy from prices to plummet. In addition, the
2008 and 2009 reduced demand for downturn forced many people to move in
moving services as individuals and with friends or family members, driving
businesses limited unnecessary spending up rental vacancy to 10.6% in 2009. In
and held off on major purchases. 2010, housing prices improved slightly,
Although more moves took place as which helped push consumers back to
individuals move from owned properties rental properties, dropping the vacancy
to rentals, such moves were usually rate to 10.2%. Rental vacancy rates have
prompted by financial stability and declined between 2011 and 2016.
therefore these individuals opted to use a
private automobile. Business demand
Corporate relocation is determined by a
Private household demand company’s financial health, which typically
The main determinants of residential moves in line with US real GDP expansion
moves include changes in property and expansion ambitions. Office moves are
prices, interest rates, employment also determined by the growth of company
opportunities, disposable income and employment and desire for better
family size. Rising prices tend to infrastructure. Additionally, property
encourage people to sell existing prices and the ease of attaining credit can
properties and upgrade to a better influence or facilitate a move.
property before prices become too Factors that determine business
expensive. Lower interest rates demand for storage include the purchase
encourage consumers to enter mortgage of new office equipment and the removal
agreements. Growing families also of existing goods: New purchases may be
require more bedrooms and, hence, the result of outdated equipment, low
bigger houses. interest rates or price reductions on new
In the majority of moves, families of goods. Operators may also use storage
two or more (or if the individual has services for nonessential files or records
specialist items, such as a piano), will to maximize office space in present
require the services of a specialist removal facilities or to protect goods that may not
company. Additionally, if there is a time be needed until a future date.
lag between the termination of a rental Many companies outsource employee
agreement (or ownership lease) of one relocation services to the Moving Services
property and beginning of the lease on a industry. Larger industry operators offer
new property, an individual may require a suite of products that make an
storage services from industry operators. employees’ move easier. Lack of
A useful measure of residential adequately qualified labor in overseas
movement is the rate of rental vacancy in areas is a major determinant of staff
the United States; a high vacancy rate is relocation. Over the past five years,
indicative of low demand for renting. In demand from businesses slightly
turn, low demand for rental properties increased due to overall profit growth.

Products & Markets
Major Markets Major market segmentation (2016)
11.8%
Government
21.7%
Corporate customers
66.5%
Consumers
Total $17.1bn SOURCE: WWW.IBISWORLD.COM
Industry operators provide moving services Services industry, account for an estimated
to the entire economy, with consumers 21.7% of industry revenue. Services may be
accounting for the bulk of revenue. used on a one-time basis, while companies
with consistent moving needs often have
Household Customers contracts with industry operators, though
Most industry operators rely on domestic contracts may be terminable at short notice
and (in some cases) international moving and may not specific a minimum
services supplied directly to consumers. transaction volume. Customers come from
The individual household market is a range of industries that require the
traditionally stable in terms of volume movement of bulk consumer goods or
and price. Services to this market include technology and pharmaceutical products.
basic moving services, packing and Financial services or retail outlets may
specialty moving. Consumers typically require storage space for things such as
pick a moving company based on brand nonsecure files and records, or out-of-
and reputation, quality of service, season inventory. Over the past five years,
delivery guarantees, price and moving revenue from corporate customers has
capacity. Over the past five years, increased. In the 2015 Corporate
consumer demand for industry services Relocation Survey, major player Atlas
increased, mostly due to the recovery World Group reports an uptick in the
with an increase in housing starts and an number of businesses and organizations
increase in existing home sales. The demanding services over the past decade.
residential housing market has also
slowly recovered over the past two years, Government
which has slightly bolstered demand for Industry operators provide household
moving services. In 2016, consumers are and office goods moving services to state
estimated to account for 66.5% of and federal government agencies in the
industry revenue. United States, including the US
Department of Agriculture, the Drug
Corporate customers Enforcement Administration and the
Corporate customers, ranging from small Federal Bureau of Investigation, all
businesses to large multinationals, are the branches of the US military and
second-largest market for the Moving government agencies of other countries.

Products & Markets
Major Markets This market segment is a stable source of than the corporate customers. In 2016,
continued demand, as government organizations government agencies are expected to
are less vulnerable to economic cycles account for 11.8% of revenue.
International Trade This industry serves the needs of the be recorded if a US citizen uses a foreign-
domestic market. However, some large based moving company to transport
companies operate internationally, goods out of the United States. Such
serving individuals and businesses in transactions form a very small proportion
relocation services to and from the of industry revenue, and they are not
United States. captured under the US International
If a customer is based abroad and uses Trade Commission’s data on US imports
a US moving company, then a service and exports; therefore, IBISWorld does
export is registered. A service import will not report trade data for the industry.

Products & Markets
Business Locations 2016
West
AK
0.4 New
England
ME
Mid- 0.4
Great Atlantic 1 2
Lakes NY 3
WA MT ND 8.0
5 4
2.8 0.4 MN
Rocky
0.4 1.4
WI
OR Mountains SD
0.3
Plains 1.7 MI
2.1
PA
2.7
6
7
1.6 ID IA OH 9 8
0.6 WY 2.9
0.3
NE
0.8
IL IN WV VA
4.2 1.5 3.5
West NV
0.7 0.2
KY
UT MO
0.9 NC
0.9
0.6 CO KS 1.8 2.5
2.3 1.0 TN
SC
Southeast
1.5
CA 1.2
13.3
OK AR GA
1.0 0.7 AL 2.7
AZ MS 1.1
1.8 NM
0.6 Southwest 0.5
TX LA
1.0 FL
7.5 8.1
West
HI
0.4 Additional States (as marked on map) Establishments (%)
1 VT 2 NH 3 MA 4 RI Less than 3%
0.3 0.5 2.8 0.4 3% to less than 10%
10% to less than 20%
5 CT 6 NJ 7 DE 8 MD 9 DC
1.3 4.2 0.2 2.2 0.1
20% or more

Products & Markets
Business Locations The distribution of industry establishments

Distribution of establishments vs. population
is highly correlated with population
distribution. The Southeast, West and
30
Mid-Atlantic have the largest share of
industry establishments, along with the
largest share of the national population. 20
The Great Lakes contains 12.4% of
establishments, compared with 14.6% of
%
the population. This is due to the region’s 10
heavy manufacturing presence, which has
recovered very slowly since the downturn.
The Southeast is the most populous 0
region, reflected in the region’s high
West
Great Lakes
Mid-Atlantic
New England
Plains
Rocky Mountains
Southeast
Southwest
concentration of establishments. The
West and Mid-Atlantic regions are major
migration destinations and points of
origin for domestic and international Establishments
customers. As a result, both regions have Population
more establishments relative to SOURCE: WWW.IBISWORLD.COM
population. These regions also have a

high concentration of major corporations about 77,308 interstate moves in 2013,
with an international presence, and thus, compared with 73,256 in 2012. States were
staff relocation demand is higher. High classified inbound, outbound or balanced
rental costs in New York and California, depending upon the relative influx or
both of which have a higher proportion of exodus of shipments. In 2013, notable
establishments than population, also inbound states were North Dakota, North
increase demand for outsourced storage Carolina and Texas. Low taxes and the
of files, records and other bulky, energy boom has provided an incentive for
nonessential and nonsecure items. people to move to North Dakota and
According to major industry player Texas. Outbound states include
Atlas World Group, the company handled Connecticut, New York and Indiana.

Competitive Landscape
Market Share Concentration | Key Success Factors | Cost Structure Benchmarks
Basis of Competition | Barriers to Entry | Industry Globalization
Market Share The Moving Services industry has a low 52.1% of enterprises are very small
Concentration level of market share concentration, with nonemploying companies.
the top four largest operators accounting Over the past five years, market share
for 21.7% of industry revenue. Most concentration has declined. Large
Level
industry companies are small operators operators did not fare well during the
Concentration in that participate in this industry as agents downturn and these national operators
this industry is L ow or subcontractors of larger companies or had to scale down operations to focus on
as local moving companies. According to profitable businesses. As a result, the
the US Census, 69.7% of the employing market share of very large operators has
companies in this industry have less than declined, contributing to a lower level of
50 employees. Additionally, an estimated concentration in this industry.
Key Success Factors Optimum capacity utilization reputation for value and efficiency, it is
Due to low margins on some jobs it is likely to win new and repeat customers.
important that operators use available
IBISWorld identifies capacity to maintain profitability. Accessibility to consumers/users
250 Key Success The industry is dependent on
Factors for a Economies of scale establishments being able to serve the
business. The most Larger companies are better able to needs of customers in all locations across
reduce costs per mile traveled and use the country and abroad.
important for this
buying power for capital equipment
industry are: and fuel. Having a diverse range of clients
A range of clients limits annual revenue
Having a good reputation volatility. Business may come from
Moving can be a stressful process for individuals, corporations from a range of
most people. If a company has a industries, and from the public sector.
Cost Structure The cost structure of a company in the local operators, as large operators can
Benchmarks Moving Services industry varies achieve economies of scale savings on
depending on the size of the company, the administrative, maintenance and other
age of the vehicles and trailers used, the operating costs.
value of contracts gained, the level of fares
charged, their geographic location and the Purchases
primary services offered by the company. Purchases are the industry’s largest
expense, accounting for an estimated
Profit 33.9% of revenue in 2016. The largest
Profit, measured as earnings before component of purchases is the contracting
interest and taxes, is expected to account of third parties to conduct transport.
for 9.0% of revenue in 2016, an However, costs also include fuel and
improvement over the past five years. In leasing vehicles. Although businesses aim
addition to the recovering economy and for vehicles that are typically fuel-efficient,
housing market, the recent decline in oil volatile oil prices can cause costs to grow or
prices has resulted in improving profit over the past five years, playing into the
margins. On average, large operators cost of hiring third-party services. Purchase
have higher profit margins than small costs have declined over the past five years.

Cost Structure High energy costs can be especially Rent and utilities
Benchmarks troublesome for smaller companies that Rent and utilities account for warehouse
lack the financial resources to buy fuel in rentals, office rentals and electricity costs.
continued
bulk or enter into forward purchase Large operators often maintain local
contracts for fuel. In addition, the cost of warehouses and garages for temporary
upgrading vehicles can be a burden, but storage, contributing to rental costs. Over
in the long run cost-effective as older the past five years, rent and utilities share
model vehicles generally consume more of revenue increased as more companies
fuel over shorter distances. rented vehicles and offices. In 2016, rent
and utilities is estimated to account for
Wages 8.6% of revenue.
Labor costs are the second largest
component of a company’s expenses, Depreciation
absorbing an average 21.1% of industry Depreciation is expected to account for
revenue. For larger companies, effective 2.3% of revenue in 2016. Depreciation
route management and strategic costs are composed of vehicle
employment practices can cut down on purchase, communications equipment,
these expenses. For example, employing office equipment, computer technology
agents, contractors and part-time drivers and software. Depreciation has
can lead to high profit margins. Wages’ remained relatively constant over the
share of revenue has decreased over the past five years as companies have
past five years, as the growth of revenue focused on the maximum usage of
has outpaced the growth of wages. existing resources.
Sector vs. Industry Costs
Average Costs of
all Industries in Industry Costs
sector (2016) (2016)
100 n Profit
9.1 9.0 n Wages
n Purchases
80
24.6 21.1 n Depreciation
n Marketing
n Rent & Utilities
n Other
Percentage of revenue
60
26.6 33.9
40
5.6 2.3
1.1 2.8
5.9
8.6
20
26.6 22.3
0

Cost Structure Other advantage in this industry.

Benchmarks Other expenses include marketing, Administrative costs have declined as
insurance, cleaning and administrative companies scaled down some operations.
continued
costs. Over the past five years, Overall, other expenses slightly declined
advertising and promotion expenses rose as the industry streamlined operations
as companies sought to gain an following the downturn.
Basis of Competition The Moving Services industry is also benefit from specializing in the
characterized by high competition, transport of certain valuable goods
Level & Trend largely due to a low level of (e.g. antiques) or in particular
concentration. Low- to medium- barriers geographic areas. Moving companies
ompetition
C in this to entry allow new entrants to easily can offer a wide range of value-added
industry is H
ighand enter the industry, and there is little services in addition to their basic
the trend is S teady differentiation in services, as most competencies. Some companies will
companies specialize in one of the major even pack a customer’s possessions,
services provided by this industry. transport them, clean a new home,
unpack possessions and arrange them
Internal competition at the other end according to a
The industry is highly price competitive customer’s written instructions.
and companies that can exploit
economies of scale have a competitive External competition
advantage. A wide range of vehicle The industry faces external competition,
capacities and styles and an extensive though some shipping industries may
geographical network of agents and offer services similar to this industry.
freelance contractors will help reduce Customers may choose to ship specialty
overall operating costs. Moving goods through shipping companies
residences is generally regarded as a instead of hiring movers. Other shipping
highly stressful endeavor and customers industries compete against industry
are dependent on timely deliveries and operators on price and convenience.
safe handling of moved goods. Furthermore, with e-commerce
Companies with a proven record of marketplaces providing a platform to
reliable service will win new and repeat connect freelance workers directly to
business. Some employers will pay for customers, small-scale moving and
relocation services if an employee is packing services could face a threat
moving for work purposes; a moving within industry services. As these
services company with a good reputation workers are price competitive,
may win contract work. customers looking to move small
Large companies may be able to packages and boxes at shorter distances
access better freight rates for domestic could find better prices through
and foreign removals and a larger e-commerce platforms than through
number of transit options (air, rail or traditional service providers such as
road). However, some companies can moving companies.

Barriers to Entry There are no regulatory requirements

that prevent companies from entering Barriers to Entry checklist
Level & Trend this industry; however, there are a Competition High
number of health, safety and Concentration Low
arriers to Entry
B environmental laws to which companies Life Cycle Stage Mature
in this industry are must adhere once they have entered the Capital Intensity Low
Mediumand S teady industry. These regulations are Technology Change Medium
constantly evolving and the costs Regulation & Policy Medium
associated with meeting them are mildly Industry Assistance Low
prohibitive of industry entry. Generally
speaking, there are also no resource SOURCE: WWW.IBISWORLD.COM
constraints on capital equipment or

land. Access to fuel is also unfettered, Market share concentration has also fallen
but the volatile price can exert as major players scaled down unprofitable
downward pressure on profit. As a subsidiaries and business segments.
result, the availability and price of fuel Barriers to entry have marginally declined
presents a minor barrier to entry for as large operators have not significantly
prospective companies. benefited from new technology and
In the five years to 2016, the number of economies scale. Limited technology
industry operators is expected to increase change makes it easier for new entrants to
at an annualized rate of 1.8% to 14,845, acquire the technical expertise needed to
but remain below mid-2000 levels. participate in this industry.
Industry The level of globalization is low; most instance, serves markets for global
Globalization operators in the industry are US-owned relocation, benefits, recruiting, logistics
and derive the majority of their revenue and travel in the United States and
Level & Trend from US operations. However, larger Canada, and has service partners
industry companies provide services to operating in 140 countries. Demand
lobalization
G in this international clients moving to or from determinants for foreign relocations are
industry is L owand the United States, and some have usually based on economic and business
the trend is S teady substantial overseas operations. Major conditions within the United States and
company Atlas World Group, for in foreign countries.

Major Companies
UniGroup Inc. | SIRVA Inc. | Other Companies
Major players
(Market share) SIRVA Inc. 7.3%
83.3%
Other
UniGroup Inc. 9.4% SOURCE: WWW.IBISWORLD.COM
Player Performance Founded in 1988 and headquartered near UniGroup Worldwide. Trans Advantage
St. Louis, UniGroup Inc. is one of the sells and leases trucks, trailers and moving
largest moving companies in the world. supplies, while UniGroup Worldwide
UniGroup Inc. UniGroup is an agent-owned private coordinates international moves for
Market share: 9.4% company with 250 agent shareholders household and bulk goods. In addition,
Industry Brand Names and 15 executive managers. The company subsidiary Allegiant Move Management
United Van Lines has about 1,220 employees who serve provides relocation management.
Trans Advantage customers in more than 175 countries
UniGroup Worldwide across the world. Clients of the Financial performance
Allegiant Move company’s umbrella of brands include Given the company’s private status, all
Management government entities, small and large financial data are estimates. In April
companies and private households. The 2010, National Interstate Insurance
company reported total revenue of $1.7 Company announced the acquisition of
billion in 2015. UniGroup participates in Vanliner Insurance Company from
the Moving Services industry through all UniGroup for about $119.0 million.
of its business operations. Its subsidiaries Vanliner is the largest provider of
United Van Lines and Mayflower Transit specialist insurance to the Moving
provide moving services. Combined, Services industry. The company
these businesses are estimated account experienced an increase in redemptions
for the largest moving services operations from shareholders after the sale of
in the United States. Vanliner, and there has been an uptick
Road operations are supported by its in the sale of stock over the past five
subsidiaries Trans Advantage and years due to concerns about slow
UniGroup (US moving services) - financial performance*

Revenue Operating Income
Year ($ million) (% change) ($ million) (% change)
2011 1,374.0 N/C 61.8 N/C
2012 1,422.0 3.5 75.3 21.8
2013 1,451.8 2.1 96.5 28.2
2014 1,530.0 5.4 94.5 -2.1
2015 1,559.3 1.9 87.7 -7.2
2016 1,610.7 3.3 94.7 8.0
*Estimates
SOURCE: IBISWORLD

Major Companies
Player Performance growth and consolidation among the diversity of its subsidiary brands and
continued company’s agents. services, in addition to its geographic
In response, the company also trimmed presence, allowed the company to
its workforce by 200 employees, cutting maintain profitability.
wage costs. The sale provided UniGroup In the five years to 2016, IBISWorld
with a much-needed boost in income, as expects UniGroup’s US moving services
the company had performed poorly during business to increase at an annualized rate
the recession. The sale of Vanliner and the of 3.2% to $1.6 billion.
Player Performance Based in Oakbrook Terrace, IL, Sirva Inc. US bankruptcy code. The declining real
is one of the largest moving companies in estate market and the turmoil in the
the world, with a presence in more than mortgage market adversely affected the
SIRVA Inc. 150 countries. Its North American brands company’s financial condition. The
Market share: 7.3% include Allied Van Lines, Global Van company was forced to take more homes
Industry Brand Names Lines, North American Van Lines and into inventory as the real estate market
Sirva Relocation Allied Pickfords. Sirva provides more continued to decline. As these homes
Sirva Mortgage than 300,000 relocations per year to came into inventory, they imposed
Sirva Settlement companies, government employees and additional capital requirements. In May
DJK Residential individual consumers. The company 2008, Sirva emerged from Chapter 11
iMove provides moving services through a bankruptcy as a privately held company,
Allied network of agents who own the trucks with $150.0 million in debtor-in-
Allied Pickfords and trailers used for moves. These agents possession financing. In December 2008,
Global are also responsible for the packing, Sirva completed its exit from Chapter 11
Northamerican hauling, storage and distribution of bankruptcy protection. Public information
household goods. Sirva acts as a network on Sirva’s financial performance has been
manager for agents and does not directly unavailable since it became a private
provide transportation services. About company in 2008. IBISWorld estimates
81.0% of all contracts between Sirva and the company generated $1.4 billion in
agents range from three to five years. total revenue in 2014.
In February 2008, Sirva filed voluntary Furthermore, in 2014, the company
petitions for relief under Chapter 11 of the filed for an Initial Public Offering (IPO)
Sirva (US moving services) - financial performance*

Revenue Operating Income
Year ($ million) (% change) ($ million) (% change)
2011 1,088.4 N/C 19.5 N/C
2012 1,126.5 3.5 20.2 3.5
2013 1,144.0 1.6 30.9 52.9
2014 1,172.3 2.5 38.1 23.3
2015 1,199.0 2.3 26.6 -30.2
2016 1,238.5 3.3 33.8 27.1
*Estimates
SOURCE: IBISWORLD

Major Companies
Player Performance for an estimated amount of $185.0 setback as it weathered weak demand
continued million. The proceeds of the IPO were to throughout the recession. Conditions
be used primarily for paying outstanding have slowly improved, with moderate
debtholders, and the company stated that growth expected in 2016. Profitability has
it was not going to receive any proceeds also improved as the company sold off its
from the sale of common stock. However, real estate assets.
after filing for the offering and Furthermore, over the past five
distributing the prospectus, the company years, the company has made progress
announced that it has decided to in generating positive operating
postpone the IPO, citing weak market margin levels by winning requests for
demand for the offering, despite the proposals with corporate customers.
company having returned to profitability. This has also helped the company
diversify its customer-base and reap
Financial performance additional revenue growth through its
Sirva’s moving services business in the asset-light business model, where the
United States is expected to generate $1.2 company outsources industry-relevant
billion in 2016. The company’s financial relocation and moving services
performance deteriorated significantly in business. Overall, the company’s
the years leading up to the recession. moving services business is expected
After overcoming bankruptcy to expand at an annualized rate of
proceedings, Sirva was dealt another 2.6% over the five years to 2016.
Other Companies The Moving Services industry is highly interstate motor carriers in the United
fragmented with many small players, States and offers various services,
some national players and a few including household moving and storage,
companies with international removal corporate relocation, international
and relocation capabilities. Overall, there moving, government and military moving
are an estimated 14,845 companies and logistics.
operating in the industry in 2016. About Atlas Van Lines was formed in 1948
half of the industry is composed of small when a group of 33 entrepreneurs formed
local operators that have no employees; a cooperative for the interstate
many smaller companies are independent transportation of household goods from
agents for the industry’s major players. coast to coast. The group took the name
Atlas Van Lines and opened a new
Atlas World Group headquarters building in Evansville, IN.
Estimated Market Share: 3.8% The company changed ownership
Atlas World Group is a family of structure in the 1980s, when stock was
companies that provides transportation offered to the public. After a hostile
and moving services through a network takeover attempt in 1988, Atlas returned
of more than 500 agents. Headquartered to ownership by its agents. The company
in Evansville, IN, Atlas serves markets for expanded rapidly in the 1990s and
global relocation, benefits, recruiting, established Atlas World Group as the
logistics and travel in the United States holding company for Atlas Van Lines and
and Canada, while also having service seven subsidiaries.
partners operating in 140 countries Atlas World Group is a privately held
across the world. Its flagship subsidiary, company and releases minimal financial
Atlas Van Lines, is one of the largest information. As a result, all revenue

Major Companies
Other Companies figures are estimates. In 2016, Atlas World corporate customers. In 2012, the
continued Group is expected to generate about company purchased Bekins Van Lines,
$647.3 million from its US moving the Hillside, Illinois based moving
services business. Over the five years to company which significantly increased
2016, revenue is expected to increase at an the company’s size. As of 2016, the
annualized rate of 3.9%. Revenue and company has an estimated 350 agents
profitability have steadily recovered since throughout the United States where the
then, with profit growing especially strong. agents own and operate their own
However, in 2015, the company was companies and provide a variety of
charged with underpaying its contracted services such as local, and interstate
owner-operators in a federal lawsuit moves, packaging and storage services.
brought on by one of the company’s Wheaton Van Lines is a private company
independent owners of moving trucks. and does not provide detailed financial
The suit claims that the company information. Therefore, the revenue figure
underpaid owner-operators by reducing is an estimate. The company is expected to
the amount of each shipment in the same generate $209.0 million in industry-
proportion that it provided as discount to relevant revenue in 2016.
its customers. Pending litigation from
this suit, which could potentially turn ArcBest Corporation
into a class-action lawsuit could Estimated Market Share: Less than 1.0%
negatively affect company revenue over ArcBest Corporation is a logistics
the next five years. company incorporated in Delaware in
1966. The Company primarily is a
Wheaton Van Lines holding company with four separate
Estimated Market Share: 1.2% subsidiaries involved in different
The predecessor to the modern-day transportation and logistics related
Wheaton Van lines, the Clipper Van Lines businesses. Out of these four subsidiaries,
company was founded by Earnest S. ABF Logistics is industry relevant.
Wheaton in 1945 in Canton, Ohio The company is involved in the freight
primarily operating in several states in the business through ABF Freight where the
North-Eastern region of the United States. company operates in the less-than-
In the 1950’s the company changed its truckload (LTL) industry. The company
named to Wheaton Van Lines when it provides time-critical, expedited, final
went international. In 1973, the company mile, home delivery, trade show and
managed to achieve the distinction of other shipping services through this
being the only moving company to operate subsidiary. The company operates in the
in all 50 states in the country. logistics business through its Panther
Like all operators in the industry, the Premium logistics subsidiary where the
company suffered a drastic decline in company provides shipping and logistics
revenue during the housing crises and solutions through its 1000 owner-
had to downsize significantly. However, operator agent network. The company
as market conditions improved, the also operates in the private and for-hire
company was able to grow back again at a fleet businesses where the company
rapid clip. Furthermore, the company has provides solutions for medium and heavy
been able to make several acquisitions in equipment transportation.
some its key markets. The company The company is involved in this
through its Olympia Moving and Storage industry through its ABF Logistics
Co. in Boston acquired Clark & Reid business and specifically through its ABF
company, which serves several large Moving segment where the company

Major Companies
Other Companies offers moving solutions for household the business has also acquired several
continued customers, military, government and companies. The business has
corporate customers. The company’s increasingly focused on corporate and
U-Pack and Albert Moving businesses government employee moving locations
offers “do-it-yourself” services for over the past five years and now
household customers, government generates two-third of its revenue from
employee relocations and corporate these services. The company employs
account employee relocations. 250 people as of 2015 and is estimated
The company’s ABF Moving business to generate $122.9 million in industry-
has grown over the past five years and relevant revenue in 2016.

Operating Conditions
Capital Intensity | Technology & Systems | Revenue Volatility
Regulation & Policy | Industry Assistance
Capital Intensity The Moving Services industry has a

moderate level of capital intensity. Capital intensity
Capital units per labor unit
Expenditure on wages accounts for a larger
Level
proportion of revenue than depreciation 0.5
The levelof capital charges. In 2016, for every dollar spent on
intensity is L ow labor, industry operators are expected to 0.4
spend $0.11 on capital investments. Capital 0.3

expenditures are typically for the purchase
of transport vehicles. Labor expenses 0.2
include the wages and salaries paid to truck 0.1

drivers, mechanics, cleaners and
administrative staff. Capital intensity has 0.0
Economy Transportation Moving Services
remained relatively unchanged over the past and Warehous-
ing
five years, as low demand caused operators Dotted line shows a high level of capital intensity
to trim both wage and depreciation costs. SOURCE: WWW.IBISWORLD.COM
Efficient communications equipment,

newer vehicles and computer-assisted maintenance labor. However, many labor
booking and route planning facilities can functions in the industry, such as driving,
reduce the need for nondriving and cannot be made less labor intensive.
Tools of the Trade: Growth Strategies for Success
New Age Economy Investment Economy

Recreation, Personal Services, Information, Communications,
Health and Education. Firms Mining, Finance and Real
benefit from personal wealth so Estate. To increase revenue
stable macroeconomic conditions firms need superior debt
are imperative. Brand awareness management, a stable
and niche labor skills are key to macroeconomic environment
product differentiation. and a sound investment plan.
Capital Intensive
Labor Intensive
Apartment & Condominium Construction

Home Builders
Truck, Trailer & Motor Home Manufacturing
Traditional Service Economy

Moving Services Rail Transportation
Old Economy
Wholesale and Retail. Reliant Local Freight Trucking Agriculture and Manufacturing.
on labor rather than capital to Traded goods can be produced
sell goods. Functions cannot using cheap labor abroad.
be outsourced therefore firms To expand firms must merge
must use new technology or acquire others to exploit
or improve staff training to economies of scale, or specialize
increase revenue growth. in niche, high-value products.
Change in Share of the Economy SOURCE: WWW.IBISWORLD.COM

Capital Intensity Moreover, long or quick turnaround trips options. Moving companies will be able to
continued require an extra driver for the company to gain an advantage in the market by
adhere to federal safety requirements. Over increasing investment in technologically
the longer term, capital investment in the advanced tractors and trailers with onboard
industry is projected to increase as communications and entertainment
competition becomes more intense and equipment. Improved interactive route and
there is a greater demand for high-quality, schedule planning will also optimize
safe and environmentally sound trucking efficiency, but require more capital.
Technology & Systems Technological change in the Moving Companies have also increasingly
Services industry is moderate. Transport installed electronic communications
Level efficiency is one area that has undergone equipment in their trucks. Allowing a
major changes in technology to achieve customer to follow the progress of their
The level
of better fuel-efficiency, higher capacity goods is another technological change for
Technology Change rates and lower nonrevenue miles. this industry. This service also allows a
is M
edium Vehicle coordination using electronic customer to take preventative measures if
tracking devices and computer programs a delivery is likely to be late. In doing so,
to quickly locate vehicles and improve equipment has been installed to access
turnaround times is another area of weather and traffic news in local areas and
technology innovation for the industry. provide electronic maps for drivers.
Environmental and Safety legislation has Computers that offer engine performance
prompted technology changes within the analysis and early detection of vehicle-
industry, especially those related to future component failure have also been installed
diesel-engine emission regulations. in some moving-service vehicles.
Revenue Volatility Over the past five years, the Moving industry services is dependent on
Services industry experienced a low level disposable income and the housing
of revenue volatility. Demand for market. Employee relocation and service
Level
The level of
Volatility is L ow A higher level of revenue Volatility vs Growth
volatility implies greater
industry risk. Volatility can 1000 Hazardous Rollercoaster
negatively affect long-term
Revenue volatility* (%)
strategic decisions, such as 100

the time frame for capital
investment.
10
When a firm makes poor
investment decisions it Moving Services
may face underutilized 1
capacity if demand
suddenly falls, or capacity 0.1 Stagnant Blue Chip
constraints if it rises –30 –10 10 30 50 70
quickly. Five-year annualized revenue growth (%)
* Axis is in logarithmic scale

Revenue Volatility outsourcing from corporations and the extensive use of agents and contractors
continued public sector are also important drivers also reduces large fluctuations. Existing
of demand. For larger companies, home sales has increased more
demand comes from a number of sectors, consistently over the past few years,
mitigating some industry volatility. The aiding in low volatility in revenue.
Regulation & Policy The Federal Highway Administration of the diesel fuel emissions from diesel engines
Department of Transport is responsible for manufactured after specified dates in
the licensing and safety of interstate 2002, 2007, and 2010. Compliance with
Level & Trend motor carriers. These regulations are found such regulations has increased the cost
he level of
T in the Federal Motor Carrier Act and the of new tractors (prime movers) and
Regulation is Motor Carrier Safety Improvement Act lowered fuel mileage for many
Mediumand the 1999. It lists certain requirements that an companies. The additional changes
operator has to adhere to. Such implemented in 2007 and beyond are
trend is S
teady
requirements include holding a expected to have similar effects. These
Commercial Driver’s License. A driver can obstacles, combined with the unknown
hold a license from only one state, needs to long-term effects of these new designs’
be aged over 21 to operate across state reliability, could increase industry costs
lines, must adhere to hours of service rules, or hinder a company’s operations.
have a complete physical examination at Meanwhile, storm water discharge
least every two years, have a minimum of permits are required at terminals where
20/40 vision in each eye, with or without truck washing is in operation. These
corrective lenses, and cannot be color permits range from $1,500 to $5,000
blind. Truckers must also register their per facility. New federal rules are
vehicles, which need to adhere to specified expected to ban the discharge of water
weights and dimensions. If an operator from vehicle maintenance facilities into
employs 50 or more drivers, they must septic tanks and other wells. This ban
routinely test drivers for drugs and alcohol. may potentially pose a challenge to
For each interstate carrier, trucking trucking facilities in areas without public
companies must have a minimum of utility access. If a company is involved in
$500,000 insurance coverage. a spill of hazardous substances or in any
way violates laws relating to such
Environmental regulations substances, it could be responsible for
The US Environmental Protection clean-up costs, property damage, fines
Agency (EPA) enforces rules that reduce or other penalties.
Industry Assistance The Moving Services industry Industry associations

provides a service and is not subject to The American Moving and Storage
any trade tariffs. Industry operators Association (AMSA) is the industry’s
Level & Trend also do not receive any specific main representative. This nonprofit
he level of
T government subsidies. As a result, association has an educational arm, the
Industry Assistance industry assistance is low, though Moving and Storage Institute. The AMSA
is L owand the operators benefit from the presence of has 3,200 members that move goods
industry associations. domestically and internationally has a
trend is S teady

Industry Assistance Certified Mover Program for professional profitability; providing educational
continued movers that have agreed to follow a Code programs and industry research;
of Conduct. AMSA-certified movers must promoting highway and driver safety; and
provide complete disclosure of moving striving for a healthy business
information, written evidence of charges, environment. Meanwhile, America’s
timely service, and a prompt response to Independent Trucker’s Association (AITA)
claims and complaints from customers. has no political agenda. Rather, the
The American Trucking Association association provides independent
represents the interests of the trucking operators and small fleets with collective
industry through a number of way, bargaining power and discount
including: influencing federal and state opportunities that larger fleets frequently
government actions; advancing the experience. The AITA has a range of
trucking industry’s image, promoting participating suppliers that provide smaller
efficiency, competitiveness and independent operators with discount parts.

Key Statistics
Industry Data Industry Per capita dis-
Revenue Value Added Establish- Wages Domestic posable income
($m) ($m) ments Enterprises Employment Exports Imports ($m) Demand ($)
2007 17,493.9 4,868.4 17,065 16,159 113,944 -- -- 4,046.2 N/A 40,898.4
2008 16,979.5 4,496.9 15,868 15,046 105,593 -- -- 3,681.9 N/A 40,352.2
2009 14,281.1 4,053.9 14,970 14,161 93,911 -- -- 3,239.8 N/A 39,516.8
2010 14,312.1 4,652.3 14,679 13,875 90,274 -- -- 3,135.3 N/A 39,118.4
2011 14,736.9 4,569.7 14,406 13,599 90,544 -- -- 3,184.4 N/A 38,983.7
2012 14,976.8 4,784.6 15,034 14,264 92,811 -- -- 3,197.0 N/A 39,190.7
2013 15,726.9 5,527.0 15,191 14,392 99,695 -- -- 3,466.8 N/A 37,743.5
2014 16,548.8 5,434.5 15,571 14,811 102,426 -- -- 3,531.4 N/A 37,866.8
2015 16,760.0 5,456.7 15,569 14,796 102,918 -- -- 3,558.5 N/A 38,913.4
2016 17,070.1 5,538.3 15,634 14,845 103,865 -- -- 3,604.4 N/A 39,267.6
2017 17,426.7 5,639.8 15,764 14,955 105,222 -- -- 3,664.7 N/A 40,210.0
2018 17,605.8 5,675.4 15,770 14,951 105,644 -- -- 3,687.7 N/A 41,175.1
2019 17,784.5 5,717.5 15,818 14,988 106,215 -- -- 3,714.9 N/A 41,975.4
2020 17,963.0 5,762.0 15,856 15,017 106,741 -- -- 3,740.8 N/A 42,602.9
2021 18,139.9 5,805.7 15,834 14,982 107,305 -- -- 3,767.7 N/A 43,299.2
Sector Rank 18/38 21/38 11/38 10/38 15/38 N/A N/A 18/38 N/A N/A
Economy Rank 501/1556 465/1556 362/1556 333/1556 383/1556 N/A N/A 436/1556 N/A N/A
Annual Change Per capita

Industry Establish- Domestic disposable
Revenue Value Added ments Enterprises Employment Exports Imports Wages Demand income
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
2008 -2.9 -7.6 -7.0 -6.9 -7.3 N/A N/A -9.0 N/A -1.3
2009 -15.9 -9.9 -5.7 -5.9 -11.1 N/A N/A -12.0 N/A -2.1
2010 0.2 14.8 -1.9 -2.0 -3.9 N/A N/A -3.2 N/A -1.0
2011 3.0 -1.8 -1.9 -2.0 0.3 N/A N/A 1.6 N/A -0.3
2012 1.6 4.7 4.4 4.9 2.5 N/A N/A 0.4 N/A 0.5
2013 5.0 15.5 1.0 0.9 7.4 N/A N/A 8.4 N/A -3.7
2014 5.2 -1.7 2.5 2.9 2.7 N/A N/A 1.9 N/A 0.3
2015 1.3 0.4 0.0 -0.1 0.5 N/A N/A 0.8 N/A 2.8
2016 1.9 1.5 0.4 0.3 0.9 N/A N/A 1.3 N/A 0.9
2017 2.1 1.8 0.8 0.7 1.3 N/A N/A 1.7 N/A 2.4
2018 1.0 0.6 0.0 0.0 0.4 N/A N/A 0.6 N/A 2.4
2019 1.0 0.7 0.3 0.2 0.5 N/A N/A 0.7 N/A 1.9
2020 1.0 0.8 0.2 0.2 0.5 N/A N/A 0.7 N/A 1.5
2021 1.0 0.8 -0.1 -0.2 0.5 N/A N/A 0.7 N/A 1.6
Sector Rank 15/38 22/38 28/38 25/38 27/38 N/A N/A 23/38 N/A N/A
Economy Rank 847/1556 992/1556 976/1556 927/1556 934/1556 N/A N/A 913/1556 N/A N/A
Key Ratios Imports/ Exports/ Revenue per Share of the

IVA/Revenue Demand Revenue Employee Wages/Revenue Employees Average Wage Economy
(%) (%) (%) ($’000) (%) per Est. ($) (%)
2007 27.83 N/A N/A 153.53 23.13 6.68 35,510.43 0.03
2008 26.48 N/A N/A 160.80 21.68 6.65 34,868.79 0.03
2009 28.39 N/A N/A 152.07 22.69 6.27 34,498.62 0.03
2010 32.51 N/A N/A 158.54 21.91 6.15 34,730.93 0.03
2011 31.01 N/A N/A 162.76 21.61 6.29 35,169.64 0.03
2012 31.95 N/A N/A 161.37 21.35 6.17 34,446.35 0.03
2013 35.14 N/A N/A 157.75 22.04 6.56 34,774.06 0.04
2014 32.84 N/A N/A 161.57 21.34 6.58 34,477.57 0.03
2015 32.56 N/A N/A 162.85 21.23 6.61 34,576.07 0.03
2016 32.44 N/A N/A 164.35 21.12 6.64 34,702.74 0.03
2017 32.36 N/A N/A 165.62 21.03 6.67 34,828.27 0.03
2018 32.24 N/A N/A 166.65 20.95 6.70 34,906.86 0.03
2019 32.15 N/A N/A 167.44 20.89 6.71 34,975.29 0.03
2020 32.08 N/A N/A 168.29 20.83 6.73 35,045.58 0.03
2021 32.01 N/A N/A 169.05 20.77 6.78 35,112.06 0.03
Sector Rank 34/38 N/A N/A 21/38 25/38 27/38 31/38 21/38
Economy Rank 746/1556 N/A N/A 1066/1556 670/1556 1024/1556 1141/1556 465/1556
Figures are in inflation-adjusted 2016 dollars. Rank refers to 2016 data. SOURCE: WWW.IBISWORLD.COM

Jargon & Glossary
Industry Jargon CHAPTER 11 BANKRUPTCY PROTECTIONA financial TRACTORSPrime movers that haul trailers of goods.
motion that prevents creditors from seeking to close a
business altogether.
CROSS COUNTRY MOVING SERVICEA moving service
that offers transportation of belongings over state lines.
IBISWorld Glossary BARRIERS TO ENTRYHigh barriers to entry mean that INDUSTRY REVENUEThe total sales of industry goods
new companies struggle to enter an industry, while low and services (exclusive of excise and sales tax); subsidies
barriers mean it is easy for new companies to enter an on production; all other operating income from outside
industry. the firm (such as commission income, repair and service
CAPITAL INTENSITY Compares the amount of money income, and rent, leasing and hiring income); and
spent on capital (plant, machinery and equipment) with capital work done by rental or lease. Receipts from
that spent on labor. IBISWorld uses the ratio of interest royalties, dividends and the sale of fixed
depreciation to wages as a proxy for capital intensity. tangible assets are excluded.
High capital intensity is more than $0.333 of capital to $1 INDUSTRY VALUE ADDED (IVA)The market value of
of labor; medium is $0.125 to $0.333 of capital to $1 of goods and services produced by the industry minus the
labor; low is less than $0.125 of capital for every $1 of cost of goods and services used in production. IVA is
labor. also described as the industry’s contribution to GDP, or
CONSTANT PRICESThe dollar figures in the Key profit plus wages and depreciation.
Statistics table, including forecasts, are adjusted for INTERNATIONAL TRADEThe level of international
inflation using the current year (i.e. year published) as the trade is determined by ratios of exports to revenue and
base year. This removes the impact of changes in the imports to domestic demand. For exports/revenue: low is
purchasing power of the dollar, leaving only the “real” less than 5%, medium is 5% to 20%, and high is more
growth or decline in industry metrics. The inflation than 20%. Imports/domestic demand: low is less than
adjustments in IBISWorld’s reports are made using the 5%, medium is 5% to 35%, and high is more than
US Bureau of Economic Analysis’ implicit GDP price 35%.
deflator. LIFE CYCLEAll industries go through periods of growth,
DOMESTIC DEMANDSpending on industry goods and maturity and decline. IBISWorld determines an
services within the United States, regardless of their industry’s life cycle by considering its growth rate
country of origin. It is derived by adding imports to (measured by IVA) compared with GDP; the growth rate
industry revenue, and then subtracting exports. of the number of establishments; the amount of change
EMPLOYMENTThe number of permanent, part-time, the industry’s products are undergoing; the rate of
temporary and seasonal employees, working proprietors, technological change; and the level of customer
partners, managers and executives within the industry. acceptance of industry products and services.
ENTERPRISE A division that is separately managed and NONEMPLOYING ESTABLISHMENT Businesses with
keeps management accounts. Each enterprise consists of no paid employment or payroll, also known as
one or more establishments that are under common nonemployers. These are mostly set up by self-employed
ownership or control. individuals.
ESTABLISHMENTThe smallest type of accounting unit PROFITIBISWorld uses earnings before interest and tax
within an enterprise, an establishment is a single physical (EBIT) as an indicator of a company’s profitability. It is
location where business is conducted or where services or calculated as revenue minus expenses, excluding
industrial operations are performed. Multiple interest and tax.
establishments under common control make up an VOLATILITYThe level of volatility is determined by
enterprise. averaging the absolute change in revenue in each of the
EXPORTSTotal value of industry goods and services sold past five years. Volatility levels: very high is more than
by US companies to customers abroad. ±20%; high volatility is ±10% to ±20%; moderate
volatility is ±3% to ±10%; and low volatility is less than
IMPORTS Total value of industry goods and services
±3%.
brought in from foreign countries to be sold in the United
States. WAGESThe gross total wages and salaries of all
employees in the industry. The cost of benefits is also
INDUSTRY CONCENTRATIONAn indicator of the
included in this figure.
dominance of the top four players in an industry.
Concentration is considered high if the top players
account for more than 70% of industry revenue. Medium
is 40% to 70% of industry revenue. Low is less than 40%.

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WWW.IBISWORLD.

COM Moving Services in the USNovember 2016 1

Moving forward: The industry will benefit from

IBISWorld Industry Report 48421

2 About this Industry 16 International Trade 30 Industry Assistance

12 Products & Markets 28 Operating Conditions

www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

About this Industry

Main Activities The primary activities of this industry are

The major products and services in this industry are

Similar Industries 48211 Rail Transportation in the US

48411 Local Freight Trucking in the US

48423 Tank & Refrigeration Trucking in the US

56211 Waste Collection Services in the US

Additional Resources For additional information on this industry

Provided to: Wise Business Plans (212385509) | 22 April 2017

Key Statistics Revenue Annual Growth 11-16 Annual Growth 16-21

$1.5bn $3.6bn 14,845

Key External Drivers 10.7%

Industry Structure Life Cycle Stage Mature Regulation Level Medium

Provided to: Wise Business Plans (212385509) | 22 April 2017

Provided to: Wise Business Plans (212385509) | 22 April 2017

House price index Existing home sales

Provided to: Wise Business Plans (212385509) | 22 April 2017

Current The Moving Services industry recovered

The Moving Services industry was hit

Provided to: Wise Business Plans (212385509) | 22 April 2017

Profit turnaround This industry’s performance is closely

Provided to: Wise Business Plans (212385509) | 22 April 2017

Industry Private investment and stronger growth in

Downstream markets Over the five years to 2021, the domestic

Provided to: Wise Business Plans (212385509) | 22 April 2017

Potential risks Several trends may adversely affect

Provided to: Wise Business Plans (212385509) | 22 April 2017

20 Maturity Quality Growth

Key Features of a Mature Industry

Provided to: Wise Business Plans (212385509) | 22 April 2017

Provided to: Wise Business Plans (212385509) | 22 April 2017

Products & Markets

Supply Chain KEY BUYING INDUSTRIES

KEY SELLING INDUSTRIES

Provided to: Wise Business Plans (212385509) | 22 April 2017

Products & Markets

Products & Services Products and services segmentation (2016)

Total $17.1bn SOURCE: WWW.IBISWORLD.COM

Provided to: Wise Business Plans (212385509) | 22 April 2017

Products & Markets

Provided to: Wise Business Plans (212385509) | 22 April 2017

Products & Markets

Major Markets Major market segmentation (2016)

Total $17.1bn SOURCE: WWW.IBISWORLD.COM

Provided to: Wise Business Plans (212385509) | 22 April 2017

Products & Markets

Provided to: Wise Business Plans (212385509) | 22 April 2017

Products & Markets

Business Locations 2016

Provided to: Wise Business Plans (212385509) | 22 April 2017

Products & Markets

COM Moving Services in the USNovember 2016 1