The recession had detrimental effects on industry revenue, but it started to recover in 2012
New York, NY (PRWEB) March 28, 2014
Operators in the Employee Relocation Services industry aim to simplify the moving process for companies and employees alike. Firms assist with departure services, which includes home sales assistance, property management and moving services. Operators then assist employees in finding new temporary and permanent housing, which includes the provision of brokerage, title and escrow services. The onset of the US recession rattled the industry, as firms cut workforces, held off new hires and shrunk relocation budgets for any new staff members. Additionally, plummeting property values and the credit squeeze stalled the housing market, which severely hurt consumer wealth, and, therefore, discouraged relocation. To make matters worse for industry operators, a rising unemployment rate provided companies with a surplus of potential employees in local markets, which diminished demand for hiring talent that would require relocation.
Consequently, industry profitability fell and revenue continued to slide until 2012. Finally, according to IBISWorld Analyst Jeremy Edwards, “rising corporate profitability, increased consumer sentiment and rising home prices caused the industry to turn around.” The industry grew in 2012 as firms took on more staff and were willing to reinvest in relocation services to attract the best talent. Overall, “the industry is projected to slightly grow at an average annual rate over the five years to 2014,” says Edwards. This will include significant growth in 2014.
The Employee Relocation Services industry has a moderate level of market share concentration. The next five years are expected to represent the bulk of industry recovery. The industry's performance is closely linked to the real estate market and housing values because homeowners are the largest driver of industry demand and revenue. Industry firms make the most off of relocations that involve a home sale and home purchase, because home sales result in brokerage, title and escrow service fees. As a result, rising home sales and prices, along with rising corporate profit and budgets, are forecast to allow the industry to grow at an annualized rate over the five years to 2019. Global relocations are also expected to rise as companies become increasingly globalized and look to attract talent from across the world.
For more information, visit IBISWorld’s Employee Relocation Services in the US industry report page.
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IBISWorld industry Report Key Topics
The Employee Relocation Services 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. The industry also offers destination services, including temporary housing and home finding to rental and mortgage assistance.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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