New York, NY (PRWEB) July 22, 2014
The Moving Services industry recovered slowly from the recession, despite a relatively strong domestic economy and labor market. Indeed, given the close linkages between US and Canadian operators, the recession in the United States caused domestic corporate profit to fall in 2009. Additionally, the domestic housing market slowed as consumer and business confidence plummeted following the recession. In 2009, housing starts fell as construction activity slowed. Since then, demand for moving services has picked up as economic growth accelerated, with housing starts and residential construction rising strongly. However, the strong growth is partly due to the recovery from the recession. However, in 2014, housing starts are anticipated to remain below pre-recession levels. As a result, in the five years to 2014, IBISWorld only expects revenue to increase at an average annual rate.
On the other hand, the industry is anticipated to be in full recovery in 2014. After a housing bubble scare in 2013, the construction sector is anticipated to grow strongly in 2014. As a result, moving activity is expected to pick up, driving revenue growth. In recent years, as demand picked up, industry operators had to expand the labor force. Indeed, many basic industry services require employees, which contributed to rising employment. As employment increased, labor expenses also increased for industry operators. Overall, wages' share of revenue is anticipated to rise in the five years to 2014. Nevertheless, despite rising costs, industry profit margins have increased over the period because moving services providers were able to pass on more costs as demand recovered.
The Moving Services industry has a low level of market share concentration, with the four largest operators accounting for about one-quarter of industry revenue. Private investment and stronger growth in the real estate sector will spur the Moving Services industry back to solid growth in 2015, with industry revenue projected to increase that year. Commercial construction is forecast to experience strong growth over the year, benefiting demand for moving services. Overall, all sectors of the economy will experience positive growth in the coming years. Corporate profit and housing starts are both projected to steadily increase from 2014 to 2019. Although rising interest rates may slightly dampen housing market growth, moving activity is anticipated to rise. As a result of improved demand, IBISWorld anticipates that industry revenue will increase at an annualized rate over the five years to 2019.
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IBISWorld industry Report Key Topics
This industry provides moving and relocation services, including trucking and shipping of household, institutional and commercial goods.
Table of Contents:
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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