Moving Industry Ups and Downs

Moving Services in the US Industry Market Research Report from IBISWorld has Been Updated

Over the next five years, the recovering housing market, falling unemployment and rising disposable income will stimulate demand for moving services. For these reasons, industry research firm IBISWorld has updated a report on the Moving Services industry in its growing industry report collection.

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Slow growth in residential construction and home prices has hurt industry revenue

Los Angeles, CA (PRWEB) February 26, 2013

The Moving Services industry has contracted over the past five years as a result of the housing market collapse and slow economic recovery. Housing starts and home sales slowed, and demand for moving services ground to a halt due to the lack of new homes on the market. Plunging mortgage rates were insufficient in stimulating demand as unemployment shot up and disposable income deteriorated. Consequently, in the five years to 2013, industry revenue is expected to decline an average 2.9% per year to $14.6 billion. In 2009, the housing market crisis hit the industry particularly hard, with housing starts and the house price index falling 35.6% and 11.4%, respectively. “Industry contraction was partly mitigated by existing home sales growth as many households moved to cheaper housing,” says IBISWorld industry analyst David Yang. “Revenue only fell 4.6% over the year.” However, the depressed real estate market and stagnant economic growth continued in 2010, and revenue declined about 17.6%.

The Moving Services industry showed signs of recovery in 2012, as favorable Federal Reserve policies allowed for a further drop in mortgage rates. Over the year, lowered interest rates and accelerating economic growth fueled home sales and housing starts, which in turn stimulated demand for moving services. These trends spurred revenue growth of about 8.8% in 2012. “In 2013, mortgage rates are expected to rise and economic growth is estimated to slow, leading to a more modest revenue increase of 1.6% for the industry,” adds Yang. “Nonetheless, profitability has considerably improved since 2008 as firms cut operating costs by reducing the labor force and restructuring operations.” The industry has a low level of market share concentration; most industry firms are small operators that participate in this industry as agents or subcontractors of larger companies or as local moving companies. Over the past five years, market share concentration has declined. Although large firms like major players UniGroup, Sirva and Atlas World Group fared better during the recession, these national operators had to scale down operations to focus on profitable businesses. As a result, the market share of very large firms has declined since 2008, contributing to a lower level of concentration in this industry.

Over the next five years, the recovering housing market will prove beneficial for industry operators. Although mortgage rates are projected to rise as the economy recovers, falling unemployment and rising disposable income will stimulate demand for housing. As a result, housing starts and home sales are anticipated to grow strongly from 2013 to 2018, leading to increased demand for moving services. For more information, visit IBISWorld’s Moving Services in the US industry report page.

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IBISWorld industry Report Key Topics

Companies in this industry provide moving and relocation services, including local, long-distance and international trucking and shipping of used household, institutional and commercial goods, furniture and equipment. Industry firms often provide incidental packing and storage activities as well.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visithttp://www.ibisworld.com or call 1-800-330-3772

Moving Company Scam. Old Man the Target.

Valley Man Ripped Off by Moving Company KLAS-TV.  His half-loaded moving truck disappeared from the front of his old home. "I had contracted with the company (AAA Movers), and they explicitly told me I had to drive the vehicle for my belongings to....
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Moving Company begins To Offer a Bidding Service for Consumers

Even under the most trouble free circumstances, it is a drag. Packing up all one’s earthly belongings in boxes, deciding what goes and what goes in the trash, finding a trustworthy mover and shouldering their fees. It’s hard to imagine a way of turning a move into a pleasurable experience, but a new startup spun out of a company already established in the moving business seeks to take the edge off.

Sharone ben-Harosh founded Unpakt.com as a tool to allow clients the opportunity to shop around for the best prices offered by movers in their area while giving movers a much more accurate account of what needs to go where. ben-Harosh knows a thing or two about moving. He founded FlatRate Moving in 1991, a company that sought to find out as much as possible about its clients requirements in order to submit an accurate price and cut down on inefficiencies that irritated clients and cut into his profits.

Unpakt is a further step in that direction, offering the additional benefits of mover ratings and price comparisons of different companies that supply bids for a client’s move. “I started to see the possibility about five years ago when I saw that the moving industry became even more complicated than it used to be,” ben-Harosh said. That complication sprung from the proliferation of moving companies – some not so great – that could build an online presence and jump into the moving game. “It’s so hard to verify who is a good mover,” he said. “If I’m a client I wouldn’t know where to start.”

How It Works

Clients can audit the amount of things they want to move by themselves – counting boxes, listing every chair or sofa or picture – or choose to rely on a typical belongings estimate based on what an apartment or house of a certain size generally contains, according to the company’s experience.

Once that is established and plugged into the Unpakt site, various moving companies in the area that are part of the site’s network will submit estimates on a price for the move. Moving companies in the network are rated based on online reviews gathered from the web, reviews submitted by Unpakt clients and confirmation that a mover has the proper licensing requirements.

Once a client decides on a mover, the order is executed and the move takes place whenever the client wishes. As far as payment is concerned, clients pay Unpakt, which then passes the money on to the moving company after taking a 13 percent cut.

“It’s based on the fact that every mover spends about 25 percent on getting the client, paying for planning their move and following up and doing everything that Unpakt is doing,” said ben-Harosh.

Challenges

Getting other moving companies to join the network was a tough sell at first, ben-Harosh said, and required them to think differently about the guidelines of the industry. “No mover works with guaranteed pricing,” he explained. “They all work with hourly estimation.”

Ultimately, Unpakt built a second platform with a customizable algorithm so that moving companies could create their own checklists they would be comfortable using to guarantee prices.  “We teach them how to use the platform if it’s their first time using guaranteed pricing methods.”

Growing the Business

Right now the business has about 120 companies in its network in about 16 states, including California, New York, Texas, Florida and others, focusing primarily on metropolitan areas. The 15-employee company’s sales team is working to grow the network and an algorithm to offer services for international movers is in the works.

Unpakt.com will be looking to raise capital from venture capital to the tune of $10 million by selling a minority share. Meetings with investors will be taking place within the next month or so, ben-Harosh said. “One of the reasons I want to work with VCs is to use more strategic partnerships that everyone can see are available for us.”

Huge Tornado Forms Above our Offices and Drops Grapefruit Sized Hail!

Moving Costs That are Not so Obvious

Moving Costs That are Not so Obvious

Reuters
Unexpected moving costs
If you're planning to relocate to a new place, whether within your state or across the country, you have a lot to consider. What should you take with you? What should you leave behind? Should you buy or rent in the new location? What are the school districts like? How much will it cost to move your stuff, and can you write off this move on your taxes?
That's just the tip of the iceberg. If you think moving costs are limited to just paying moving professionals to pack and transport your belongings, think again. Moving oftentimes comes with surprise costs. Here are some of the unexpected expenses that come with moving and a few tips for sidestepping them.
Auto insurance costs
Your auto insurance profile may change because of your new location. "When you move from a more rural market, less population, to a highly densely populated urban environment, you can see swings (in your car insurance rates) probably anywhere from 15% to 50%," says Dan Young, senior vice president of insurance relations for Carstar, a network of 400 body repair shops located in the U.S. and Canada. The exact amount depends on the area's accident rate and the customer's driving and claims history.
If moving out of state, you may have to buy more insurance coverage, too. Each state has its own minimum liability requirements and some require drivers to purchase personal injury protection and uninsured motorist coverage.
Also, if you're moving from an area where incomes are modest to a place where they're higher, you may need more coverage, Young adds. "In rural Iowa, you may not run into Lamborghinis or a vast amount of Mercedes Benzes," he says, "but you move to New York City and you're out driving around, you'd better be fully covered."
When planning a move, Young advises consumers to ask their insurance company about rate changes and whether they need to purchase more coverage.
Parking fees
Along with higher car insurance costs may come increased parking fees, says Bryan Pritchard, owner of Tricap Preferred, a luxury apartment locator service in Chicago.
"Parking is typically not included in rent," he says, adding that a primo parking space can easily tack on an extra $200 to $300 to your monthly rent in a big city.
The best way to avoid extra parking fees along with increased car insurance and servicing costs is to ditch your vehicle entirely, says Pritchard. While public transportation may suffice in larger cities, those living in areas without bus or subway access may be able to use car sharing and car pool services instead of having their own ride. If getting rid of your car isn't a viable option, make sure you're aware of what it costs to park in or near your building and workplace.
Health insurance hikes
Like car insurance, health insurance can change when you switch homes, especially if you're moving out of state.
"Not every health insurance company is licensed in all 50 states," says John Egan, managing editor of InsuranceQuotes.com, a Bankrate site. Even if it is, your insurance provider can change the plan you're on, the health care network you have access to and the rate you're charged. Egan adds that health insurance mandates vary among states, too. "There may be some types of (medical) procedures, for instance, that are covered in one state and that are not mandated to be covered in another state," he says.
Unless you're getting health insurance from an employer or spouse's employer, switching insurance companies as a result of a move will likely mean undergoing medical underwriting, Egan says, which could result in a substantial change in premium or a flat-out rejection if you have certain pre-existing conditions.
The only way to fight escalating health care costs is by careful comparison-shopping. An independent broker may also be able to help compare policies apples to apples.
Higher interest charges
Paying off debts with local stores is a good idea. Closing out those credit lines may not be. According to FICO, the company that created the FICO credit-scoring model, 30% of your credit score is based on the amount you owe in relation to how much credit you have available.
While paying off debt can improve your credit score, closing out an account and reducing the amount of available credit can hurt your score, says Gail Cunningham, vice president of membership and public relations for the National Foundation for Credit Counseling, a consumer advocacy group based in Washington, D.C. For families who plan to take out a loan or mortgage after moving, a credit score ding can result in thousands of dollars in extra interest over the life of the loan.
"If you're on the cusp, if you're trying to build your credit, maybe you're moving to that new town and you haven't bought your house yet ... then you need to leave those accounts open," Cunningham says.
Contract penalties
Some moving costs can be easily overlooked. If you've paid for a membership at a gym, pool, country club, day care facility, after-school enrichment program or community association, ducking out ahead of schedule could cost you. Ted Stimpson, president and CEO of MyMove.com, a consumer information site about relocating, says that consumers oftentimes lose money by assuming that they can't get out of an annual or monthly contract.
"If moving is a qualifying event for allowing you to get out of your contract, they're going to want to see proof that you are moving," he says. "They're going to want to see some sort of documentation (such as the purchase and sale agreement) on the new home or that contract with the moving company that's proving you're actually moving."
Stimpson adds that managers may not know if consumers can break a contract without paying a hefty fee. Before taking "no" for an answer, review the terms and conditions of your membership to see if there's a loophole for members who move.
Missed security deposits
Along with forgetting about annual memberships, renters frequently forget to reclaim their security deposits. Depending on your state, landlords are legally required to return your security deposit anywhere from 14 to 60 days after you move out; however, tenants generally must provide a forwarding address in writing or a direct deposit account where funds can be placed.
According to Tenants Union, a nonprofit equal housing advocacy group based in Seattle, landlords may not subtract money from the security deposit for normal wear and tear done to the apartment, but they may subtract nonrefundable fees such as cleaning or pet fees if the fees were outlined in the rental agreement prior to move-in.
Should the landlord not return your security deposit in a timely manner or send a letter explaining why he is keeping all or part of it, tenants may seek legal assistance through an attorney or housing advocacy group.
Overdraft fees
Cancel your local memberships before you move, but leave your bank account open for now, Cunningham says. Even if you're moving to a location that your old bank doesn't service, leaving your account open after the move can prevent forgotten bills from incurring overdraft fees.
"Give yourself three months to let all of those cycle through," she says. "Don't put yourself at risk of incurring a nonsufficient funds (charge) by having closed that account." These fees can add a lot to your moving costs.
Once you know that all of the bills linked to that account have been paid and closed, remember to shut down that old bank account, too. Many institutions charge monthly fees on accounts with small balances.
Utility charges
The price you pay for basics such as gas, water and electricity can go up during a move even if you decrease your own use, says Pritchard.
Utility bills are not based on usage, he says. "It is based on a methodology that allocates a certain percentage to your apartment, and that is typically done based on unit size," he says. "If you have a two-bedroom, you're going to get charged more than a one-bedroom ... no matter if you sit in the dark all day or your house is lit up like a Christmas tree all day."
While apartment and condo tenants typically can't convince the building to reallocate utility bills based on usage, says Pritchard, they can be aware of how utilities are divided up, ask about average utility costs per month and choose to live in other places if they feel that the costs are too high. Such moving costs can be prevented with a little bit of planning.
Late fees
Mail mix-ups are common when changing abodes. So are the financial ramifications of not getting mail on time. Consumers who don't get their bills may be hit with late fees on multiple bills, likely resulting in a ding to their credit score.
Even if mail forwarding is already in place, Cunningham says those planning to move should switch as many bills as they can to online bill-pay until they're sure there's no problem receiving mail at the new place.
"Simply because they've moved and they forgot about a bill or the bill didn't arrive in the mail is not going to be an excuse that holds water with a lender," she says.

Read more: http://www.foxbusiness.com/personal-finance/2013/01/31/moving-costs-that-are-not-so-obvious/#ixzz2K6ICijEd