Employee Relocation Services in the US Industry Market Research Report Now Available from IBISWorld

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Demand for industry services is expected to continue through 2018, though tapering off a bit at the end as baby boomers start to retire. For these reasons, industry research firm IBISWorld has added a report on the Employee Relocation Services industry to its growing industry report collection.

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The recession had detrimental effects on industry revenue, but it started to recover in 2012

The Employee Relocation Services industry was hurt by the recession. According to IBISWorld industry analyst Nima Samada, “Plummeting property values and the credit squeeze stalled the housing market, which discouraged homeowners from relocating.” Furthermore, declines in aggregate employment and a rising unemployment rate provided companies with a healthy supply of potential employees in local markets, which further reduced the need for employee relocations. However, the industry began to recover in 2012, with revenue growing 8.8% as housing starts and home sales shot up and corporations started hiring more employees and were increasingly willing to pay for employee relocations. Revenue is expected to increase 12.6% over 2013, as hiring continues to pick up as the economy recovers. Nonetheless, even with strong recent growth, revenue is projected to fall at an annualized rate of 4.4% over the five years to 2013, reaching $11.7 billion.

Businesses are the industry's largest users of employee relocation services. “When companies were slashing employee numbers, they were less likely to relocate existing or new employees and spend money on a relocation packages,” says Samadi. Demand from businesses has been weak in recent years, but with corporate profit on the rise, this market is poised to rebound in 2013. When business sentiment and corporate profit are healthy, businesses are more likely to use third-party services to send employees to a new location as a means of expanding. They are also more likely to offer relocation packages to new employees to encourage them to relocate and join their company.

The Employee Relocation Services industry has a moderate level of market share concentration. Although the industry is fragmented with a fair number of small establishments that cater to specific regions, larger multinational companies generate the largest portion of industry revenue. In 2013, IBISWorld estimates the top four largest companies in the industry account for about 62.3% of industry revenue. During the past five years, the number of industry firms declined at an average annual rate of 1.0%, indicating that larger firms faced more drastic revenue declines. Some smaller industry firms remain afloat due to their expertise in a specific segment of employee relocation services or a specialization in a geographic region.

This industry's performance is also closely linked to the real estate market and housing values because homeowners are by far the largest driver of industry demand and revenue. Industry firms make the most off relocations that involve a home sale and home purchases, and the value of these relocations tends to be much larger than other types. According to Worldwide ERC, an industry association, domestic transfers involving homeowners cost an additional $72,950 in 2011 for existing employees and an additional $53,363 for new hires in 2011 on average (latest information available) compared with renters. When the housing market is strong, so is demand for employee relocation services. Over the five years to 2018, IBISWorld projects that existing home sales will grow healthily. The recovery of the housing market will help industry revenue grow during the five years to 2018.

For more information, visit IBISWorld’s Employee Relocation Services in the US industry report page.
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IBISWorld industry Report Key Topics

This industry offers employee relocation services that aim to simplify the moving process. Firms provide departure services, which include home sale assistance, property management and moving services. Services also include destination services, including temporary housing and home finding to rental and mortgage assistance.

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, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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