Moving Companies in Trouble?

Due to the current economic crisis and ever-increasing fuel rates, we had a quick chat with M.J., owner of an established reputable interstate moving and storage van line (as per his request, we will not publish specific information).

M.J. told us what everyone in the industry already know- the fuel prices are biting into the profits and along with the economic state and the uncertainty of the market, the work volume has decreased significantly. With last month’s diesel fuel price being almost $2 higher than a year ago (Diesel fuel prices and changes can be found on the EIA website) and with the housing market refusing to pick up, the demand for full service movers is declining.

M.J. concludes that people are not inclined to make any major changes or purchase a home as they fear that instead of earning equity their property will actually lose value, which affects the moving industry in return.

The consequent of having increasing operating expenses and decreasing volume of work is earning less income and making less profit. M.J. said that from his experience, many of the prospective customers opt to use a rental company and perform the move themselves rather than using professional movers.

It did come as a surprise though, he said, to read a recent publishing stating that U-Haul reported their earnings for the last year were down by approximately 30% . “The market was hit hard, and it hit everybody”, he said.