People tend to move a lot during their lifetime, especially those who are residents of the USA. Did you know that every year, more than 31 million Americans relocate their belongings to another place? That is around 10-11% of all Americans who are moving each year! Looking at these numbers, it becomes very clear that the moving and storage industry has a big economic impact. But how big and important this impact is? Well, to get the answer to this question, we have to take a look at the results of the Economic Impact Study of the Moving & Storage Industry conducted by the American Moving & Storage Association.
Worry not, we, at Verified Movers, are going to explain every part of it! Let’s start from the basics – what is the economic impact study?
What is the Economic Impact Study?
Economic impact studies or analysis are being conducted in almost every industry, and not just in the moving and storage industry. This study quantitatively estimates the economic benefits that a particular project or industry brings (or could bring) to the community or region. When you conduct this study, you are basically examining the effect of a specific industry (project or event) on the economy in the specific area. The study region can be a neighborhood, city, town, state, country, continent, or the entire world.
In this study, researchers use economic and financial data to generate estimates of employment, tax revenue, wages earned, and other measures that are associated with the change that has the moving and storage industry brought to the economy. We can estimate the direct, indirect, and induced economic impacts of the industry or project.
Since the Economic Impact Study of the Moving & Storage Industry has been brought to us by the American Moving & Storage Association, we should learn more about it before we proceed to the study’s results. This association is an important part of the moving and storage industry. It has introduced many important changes in this industry and focuses on regulating moving companies. The least we can do is get informed a bit more about it.
A brief overview of AMSA (American Moving & Storage Association)
American Moving & Storage Association, or simply AMSA, is a non-profit association that was established in 1936 in Washington D.C.. The main goal of AMSA is to represent properly those who are involved in the moving and storage industry and to provide valuable sources of information for those who are interested in moving locally or over long distances. Here are a couple of quick facts about AMSA:
- AMSA is the only national association that represents all sectors of the moving and storage industry;
- This association consists of more than 4000 members;
- Its members are interstate moving and storage companies, local movers, long-distance movers, international movers, industry suppliers, and state association members;
- AMSA’s members move between 1.3 and 1.5 million households each year;
- AMSA regularly checks their members to see whether they are following AMSA’s code of ethics and other regulations.
In 2009, AMSA has launched the ProMover certification. The reason why they did this is to assure clients they are hiring reliable movers and getting quality services. To become a ProMover, moving companies need to meet every requirement and criteria. They need to be AMSA’s members for at least 18 months and have good results. Thus, not everyone can get the title of a ProMover. Only the best among the best will get it.
And finally, AMSA is the creator of the Economic Impact Study of the Moving & Storage Industry. This study showed how valuable the moving and storage industry is since it has a great economic impact. Let’s finally take a look at this study and its findings.
Moving and storage industry and its impact on the US economy
The moving and storage industry is changing as time goes by. But, even though there is a slight decrease in the number of relocations per year, there is still a big demand for moving and storage companies. This industry includes small, medium, and large companies. And, what is important to understand is that every company is somewhat unique. Some of them are large corporate organizations, while others are small and family-owned businesses.
What Moving & Storage Industry Looks Like?
- Moving & Storage industry employs 186,722 people
- There are 7,000 different moving companies that operate in 13,900 locations across the USA
- Around 47.8 percent of moving and storage companies in the USA have fewer than 5 employees
- Only 8.5 percent of moving companies have more than 100 employees
- There are more self-storage facilities in the USA than McDonald’s and Starbucks locations combined
There are also many different moving and storage services. Only some of them are local, long-distance, residential, and commercial relocation. And, every company has a unique offer and not all of them can provide you with the same services. So, when you want to move from one place to another it is really important to find a reliable company that has the services you need.
The Economic Impact Study of the Moving & Storage Industry
The Economic Impact Study helped us understand a bit more how many movers there are and how much Americans have earned thanks to this industry. Here is a brief overview of how the moving and storage industry has affected the US economy.
Economic Impact of the US Moving and Storage Industry:
- Total Economic Impact $85.70 billion
- Industry Facilities 15,800
- Total Taxes $9.42 billion
- Wages Earned $27.92 billion
- Direct Jobs Created 186,722
- Indirect Jobs Created 482,081
As we can see from the graphic above, this industry directly employs 186,722 people in the US. The total impact of the moving and storage industry in 2016 was $85.7 billion. And, Americans have earned $27.9 billion thanks to this industry, which resulted in $9.42 billion in taxes earned. What is even more interesting is that people who move a lot have indirectly created 482,081 jobs! So, if you too had an intrastate or interstate relocation in the past few years, know that you have indirectly helped someone get a job. Isn’t this amazing information?
The Moving & Storage Industry’s Impact In Different States
We wanted to analyze the economic impact the moving and storage industry has in different US states. This is why we have separated the five most popular locations to move to. These states are South Dakota, Vermont, Oregon, Idaho, and South Carolina. Here is what we have found out!
- Total Economic Impact: There are 39 professional moving & storage facilities that generate $144.89 million in annual output;
- Jobs created and Wages: Professional moving & storage companies are responsible for creating 857 jobs and $43.20 million in wages paid;
- Total Taxes: The industry generates $12.36 million in total taxes;
- Total Economic Impact: There are 33 professional moving & storage facilities that generate $116.79 million in annual output;
- Jobs created and Wages: Professional moving & storage companies are responsible for creating 772 reliable jobs and $40.53 million in wages paid;
- Total Taxes: The industry generates $13.67 million in total taxes;
- Total Economic Impact: There are 183 professional moving & storage facilities that generate $867.56 million in annual output;
- Jobs created and Wages: Professional moving and storage companies are responsible for creating 5,546 reliable jobs and $302.83 million in wages paid;
- Total Taxes: The industry generates $99.69 million in total taxes;
- Total Economic Impact: There are 62 professional moving & storage facilities that generate $270.29 million in annual output;
- Jobs created and Wages: Professional moving & storage companies are responsible for creating 1,718 reliable jobs and $82.38 million in wages paid;
- Total Taxes: The industry generates $24.97 million in total taxes;
- Total Economic Impact: There are 177 professional moving & storage facilities that generate $709.83 million in annual output;
- Jobs created and Wages: Professional moving & storage companies are responsible for creating 4,490 reliable jobs and $219.69 million in wages paid;
- Total Taxes: The industry generates $71.26 million in total taxes;
Moving behaviors and trends
When you have a lot of relocations in one year, everyone will benefit from them – the country, moving companies, real estate companies, etc. So, having that many relocations and being that mobile is actually a good thing. The Economic Impact Study has helped us understand this better. This is why analyzing important studies is always a good thing… especially if they are about the industry you belong to.
The moving industry is constantly changing. There are different trends and companies need to keep up with them in order to stay in the business. We have already mentioned how many times does an average person move. But, the numbers show us now, there is a slight decrease in the number of people who are moving. If we take a look at previous years, we can see that, once, around 12% of Americans moved in a year. Last year, 10% of Americans have moved to another place. This doesn’t seem like a huge difference but it actually is. The Economic impact study showed us that the number of relocations can, directly and indirectly, create jobs. And the fewer relocations we have, the fewer jobs there will be. This is why it is important to follow moving behaviors and analyze them.
Are DIY relocations more popular than moving with the help of professionals?
Different studies show us that a lot of people are actually moving on their own. They think this is a better and cheaper option, but it really isn’t. There are many downsides of DIY relocations and people need to be aware of them before they decide whether they will move on their own or with the help of professionals.
How are people moving?
- DIY relocation 45%
- Renting a moving truck 33%
- Hiring professional movers 22%
We can’t blame those who don’t trust moving companies. Unfortunately, now you can find so many moving companies that offer services of average quality. And that is not all! There are fraudulent moving companies that only look for ways of scamming their customers. But, even though these companies exist, that doesn’t mean there aren’t reliable moving companies that offer quality services. Remember AMSA’s ProMover certification? If you hire some of the best long-distance moving companies, you can be sure that nothing will go wrong during your relocation.
It is important to understand that moving professionals have the experience and knowledge to handle any type of relocation. You, on the other hand, will have to learn a lot about the relocation and you will probably make huge mistakes that could cost you a lot. So, instead of making your move even challenging, simply hire the moving company that suits you the most.
Are you getting ready to relocate? Rely on Verified Movers!
We have analyzed for you the Economic Impact Study of the Moving & Storage Industry, but we can do so much more for you! In case you plan to relocate in the near future, we will gladly help you prepare for this process. You will see that relocations don’t have to be challenging nor overwhelming. As a company that has been a part of the moving industry this long, we believe we can help anyone who plans to relocate their belongings.
With the help of Verified Movers, you will:
- Learn about moving preparations and relocation process itself by reading our comprehensive moving guides;
- Find a reliable moving company in no time, just by visiting our website;
- Plan your moving budget with the help of our free moving estimate;
- Get answers to any moving-related questions you might have.
- Be able to give a review for the company that has helped you relocate.
These are only some of the things we can offer you. If you want to learn more about us and our company, make sure to get in touch with us via phone or mail. Feel free to ask us anything regarding your move and our professionals will provide you with the necessary information. With the help of Verified Movers, every relocation becomes simple!