The last three years were very turbulent for the whole world. At times, it feels like our whole life has changed. It started with the pandemic of COVID-19 which has turned the world upside down and severely changed our lives temporarily, even permanently to some extent. The pandemic resulted in big economic challenges that led to a crisis accompanied by huge inflation. Now, in 2022, we have an energy crisis in Europe. Although it may seem far away to you at first, it actually already affected the whole world, and the United States is no exception. Our team at Verified Movers will stick to the relocation-related issues here, so in this article, we’ll show you how does the EU energy crisis affect the moving industry, with an emphasis on the impact it has here in the USA.
The background of an ongoing energy crisis
Since the reason why the energy crisis is happening is far away from, not only our country but our continent, we imagine that a lot of people in the USA still aren’t aware of what exactly is going on. That’s why we decided to give you a brief introduction. With the instability of the economy even before 2022 due to the COVID recession and the latter inflation, a slight energy crisis was on the horizon. However, the main reason we’re experiencing such big problems is the war in Ukraine. Since this is not our topic here, we won’t get into the details of the conflict as such, although we imagine that you’ve already heard a lot about it.
Once the war started, countries in the EU, along with the majority of Western democracies, condemned the actions of Russia. Sanctions were imposed on Russia and its economy.. So, they answered with sanctions of their own, and Russia, being one of the largest providers of natural gas and fuel, stopped exporting it (or continued exporting certain things but at a higher price). Now, the lack of natural gas and fuel has put Europe in a really tough place. With high demand and low supply, one thing was inevitable, a huge jump in prices. Almost every industry was affected by this one way or another, and we’ll show you how did it affect the moving industry.
How does the EU energy crisis affect the moving industry? Rising fuel prices are the main issue for companies and their clients
Since the whole relocation process revolves around transportation from one place to another, it’s obvious that any impact on the fuel will impact the moving industry as well. When the prices of fuel jump by 20-30% that’s a huge difference. This especially goes for someone who is moving across the country, let alone coast-to-coast. Just imagine how big the expenses will be for top movers in Fresno, California, when they’re relocating someone to, say, New York City.
Relocations are becoming more expensive, which is a problem for people who are moving
So, with the rising fuel prices, it’s obvious that people will have to pay more for their relocation. And that’s not ideal. When you take into account the economic crisis that was ongoing even before that, and the inflation as a result, it’s really worrying for someone’s budget. That’s why some big cities that are easy to afford have seen a big inflow of residents. For example, top movers in Omaha are helping a lot of people settle in Nebraska’s largest city nowadays mainly due to the city’s affordability.
Larger moving prices mean fewer clients, which is an issue for companies
For all the reasons we mentioned above, it’s clear why someone would lose motivation to move. If the money is tight, the last thing you need is another large expense. So, a lot of people decide against the move, or they decide to postpone it for the near future. This leaves moving companies in a very unpleasant situation. They have to increase their prices since fuel is becoming more expensive. But, that negatively impacts their business, at least to some extent, since there’ll be fewer clients.
The EU energy crisis shifts the moving trends towards warmer states due to higher electricity bills
Heating is a big problem now, especially in Europe. Not only are the gas prices and electricity bills rising, but there is actually a deficit in supply. That means that even if you are ready to pay for much higher bills, you still may not get as much heat as you want. Naturally, in the United States, this is less of a problem, but nevertheless not a negligible one. As a result, people are moving to states with warmer climates, leaving those states where the winters are especially cold. One of the states that have problems because of this is Wisconsin, which is known for harsh winters. Top movers in Milwaukee are helping dozens of people relocate down South on a daily basis. And, when it comes to warmer states, the most frequent choices are Florida, Texas, and Arizona.
A global solution to the EU energy crisis is yet to be found, so we need to find a way to get used to it
We would love to encourage both moving companies and people on the move by saying that it will be better soon. However, we don’t know that. Nevertheless, we’ll stay optimistic, hoping that a solution will be found soon. We also hope that this article helped you understand how the EU energy crisis affect the moving industry. Moving trends will definitely shift to warm and affordable states. Top movers in Tulsa are already seeing an increased number of inbound moves to Oklahoma. This is understandable since Oklahoma is both relatively warm and very affordable. There are a few similar examples as well. Texas, some Floridian cities, the majority of Arizona, and New Mexico, all these states fall into the aforementioned category. What’s certain though, is that with so many changes happening around us, we need to find a way to get used to them quickly.