Industry Report: Used Household and Office Goods Moving

Provided by:

Industry: Used Household and Office Goods Moving

Naics: 484210

Private Company Multiples

Industry Overview
‍

‍
Moving companies are fascinating from a business perspective. They're a perfect barometer for both economic health and societal trends.

First, the numbers: We're looking at a CAGR of 0.7%, hitting $21.3 billion in 2023. That's despite a 10% revenue drop in the same year. Sounds contradictory? Welcome to the moving industry.

Here's what's happening: Residential moving has been the industry's lifeline, thanks to those juicy low interest rates we've seen. But - and this is crucial for valuation - the nonresidential market has taken a hit. Corporate profits are down, business sentiment is shaky, and that's reflected in the numbers.

Macro factors - inflation's gone wild, the Fed's hiking rates, and suddenly buying homes or commercial real estate isn't the no-brainer it used to be. Add in skyrocketing fuel prices, and you've got a perfect storm that's squeezing margins from both ends.

But here's where it gets interesting for buyers and sellers: volatility breeds opportunity. The industry's fundamentals are solid. We're projecting a CAGR of 1.1% over the next five years, potentially hitting $22.6 billion by 2028. Profit margins are expected to settle at 7.2% of revenue. Not bad for a "non-sexy" industry, right?

For brokers and potential buyers, here's what you need to understand: Moving companies are at the intersection of multiple economic trends. Strong economic growth will boost corporate demand, but a weak housing market due to high mortgage rates will be a drag on residential services.

The wildcard? Urbanization and technology. Increasing urban density keeps moving services relevant, but app-based movers are disrupting the traditional model. If you're valuing a moving company, you need to factor in their tech adoption and adaptability.

To current owners: your ability to navigate these crosscurrents will determine your valuation. Are you diversified between residential and commercial? How's your fuel efficiency? Are you embracing technology or fighting it?

For potential buyers: look for companies that have weathered this volatility well. They're likely to be resilient, adaptable, and well-positioned for future growth.

Remember, in the moving industry, it's not just about shifting boxes - it's about understanding shifting markets. Get that right, and you're not just buying a business; you're buying a piece of economic insight that pays dividends.

Key Financial Metrics

Income Statement Benchmark

Interested in acquiring a business? Create a buyer profile with Tupelo to connect with brokers.

‍Create a buyer profile here >