According to 2021 statistics, there were around 17,500 businesses in the moving industry in the US.
These companies assist businesses and private individuals with relocation services or moving goods from one location to another. In the past few years, moving companies have increased in their numbers and are expected to continue growing at a steady pace.
This reason alone would make it a great business opportunity for entrepreneurs looking to start a company in the moving industry space. However, positive economic growth is only one of the factors that make the moving services industry important to the US.
Below is a list of reasons why this industry plays an important role and what are the key things to consider when starting a business in the moving service industry.
Reasons this is an important industry
Moving is segmented
The demand for moving services is increasing as the economy strengthens which means the industry is poised for growth.
The industry is segmented into three categories namely; Commercial, Residential, Warehousing and all other moving services. All four of these categories are projected to grow and become more in demand in the future.
Job creation and revenue stream
An estimated amount of 122,600 people are employed by the moving industry which puts the total payroll spend at around $3.6 billion annually. The economic impact of the moving industry is at around $86 billion per year and the tax revenue generated each year is about $9.6 billion.
In the United States there are around 7000 moving companies that contribute to a healthy economic environment.
Future outlook
People move for different reasons, but a reason sensus shows that the top reasons for people moving are.
- Relocating to a better home.
- Creating their own household.
- Job transfers
- Family related reasons.
- To find a cheaper home.
So what does the future look like for the moving services industry?
The work from home phenomena is likely going to continue to increase which means more and more employees are looking to find suitable homes with adequate space to work. Trends have also shown that the pandemic has caused many to move away from the populated cities to the less densely populated rural areas.
Businesses are moving to find cheaper operating locations and others are moving to expand their growing businesses. Either way, the moving industry has a bright future ahead as it does not look like things are going to slow down for the industry any time soon.
Key things to consider when starting a moving business
Business Insurance
The most important aspect of any business, but especially moving services is to have moving company insurance. With any company there is risk and a moving service is no different.
Some of the risks associated with moving services are.
- Sustaining injuries from moving heavy loads.
- Damage of items during moving.
- Vehicle accidents involving moving trucks.
General Liability Insurance is not mandatory, but can save a business from having a huge financial burden when an accident occurs. Some of the risks that are covered include.
- Bodily Injury
- Property Damage.
- Medical Costs.
- Legal Fees
- Advertising or personal injury.
The cost of insurance can vary depending on the type of insurance policy selected and the amount of cover that the business requires. The costs can run from $450 to $1000 annually for cover.
Vehicle Insurance will be a legal requirement for any moving company. Every truck or vehicle used in the business will have to be insured with a commercial auto policy. This will ensure the trucks are covered in the event of an accident.
Some other insurance a business might need is; Workers Compensation Insurance, Commercial Property Insurance and Commercial Umbrella Insurance. A broker can advise on the best packages for the business.
What next?
It’s clear that the moving industry plays an important role in the US economy and that the industry is going to continue to grow in the future. Whether you are thinking about starting a business in the moving services industry or have already started the process, there are a few things you can do to protect your future business even further.
- Seth up an LLC (Limited Liability Company).
- Use comprehensive legal contracts and documents.
- Stay up to date with business licensing.
- Look into all the relevant insurance options and how to protect your business.
- Know the tax laws and regulations of the State the business is operating in.
- Secure a business name and domain.
