US in recession, is economy effects moving companies?

Generally economy leads into recession when business slows down, business reduce there capital goods investment, lay-offs, increase in inflation, increase in interest rates and decrease in consumer spending are caused due to hit in the oil prices which is feed into industrialized economies.

Role of moving companies in the economy

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The firms engaged in the production, distribution and retail industry will have a positive impact when the freight movement is cheaper with better quality. Reducing the cost of carriage and thus efficiently serving wider market with prospective gains. Business is heavily relied on it productivity capacity to achieve its economic goals. For this, efficient freight movers are necessary for its productivity. Business tends to increase productivity with lower costs and improved quality of freight mover’s services.

Economic benefits of the freight movers

With efficient freight mover, purchase and inventory control becomes faster and reliable. This efficiency can increase productivity in manufacturing and distribution activities which in turn benefits economic.  

Economic impact on moving industry

Moving companies had a sever draw back due to the ongoing recession in US economy. VA- ATA’s (American trucking association) marking the third consecutive month-to-month drop in advanced seasonally adjusted For-Hire Truck Tonnage Index decreased 0.9 percent in September. This downfall in USA movers industry is due to increased cost of fuel. Business had lost there confidence, interest rates have gone up, due to lay-off’s, consumer spending has decreased because of these manufacturing productivity has gone down. As the business has to reduce there cost of production through cut in transportation cost, carrying cost of inventory, cost of owning and ordering cost which in turn effect the moving companies where the business tend to respond to the moving companies to reduce there logistic cost. More recently the moving costs have been falling and increase in reliability with increase in competition and increased trip miles per hour for each vehicle and thus smaller work force for the same amount of work with lower maintenance cost and increased reliability. 

An efficient and reliable freight movers services like van lines movers can continue growth in the manufacturing productivity. Congestion in the system can hamper the reliability of the productivity, which leads to increase in cost of transportation threatening economic growth.  Sunset Movers

29 thoughts on “US in recession, is economy effects moving companies?

  1. I also found this source at

    Morgan Stanley’s Gregory Peters warns that Asian economies are not immune as the global economy slides into recession. The United States economy has already entered a recession, and the global economy as a whole is in real danger of entering one, warns Gregory Peters, global head of fixed income at Morgan Stanley. New York-based Peters says that major indicators in the US already suggest the world’s biggest econo…

  2. My name is Bridget Reno and I live in Orlando Florida. I recently had to pack up and move to another city in Florida. I searched for days struggling to find the best company to help my family and me with this move. The Professionalism of the company was very important to us seeing how we were moving everything that we owned. I also was looking for a company that provided insurance, temporary storage, boxes as well as a few other factors that were important to us in choosing a moving company. I talked to a bunch of moving companies in the area and most of them made me really nervous. The first one that even talked to me and was willing to patiently answer all the questions that I had was this place called JJ . Although I wasn’t all that familiar with the moving process, they made me feel comfortable enough to use their services. If you chose to use any kind of moving company, please take the time to research the company first before trusting them with all of your personal belongings. I’ve heard horror stories of what can happen to you and your belonging if you don’t take the time to research a moving company first. It’s good to protect yourself and it will be worth it in the long run.

  3. I thought moving companies (well the better know) would be getting more business now that the “credit” crunch has hit us. Lots of people moving houses now.

  4. Just wanted to let everyone know about

    I was in the moving industry for 15 years and have personally moved over 8,000 families myself. Believe me when I tell you, I have seen it all and then some. As a professional mover for so long I can tell you that it does not matter wether you call the largest mover in the phone book or the smallest guy in the newspaper. What matters most is who shows up at your front door. There are only 2 kinds of movers: Guys who have a family to support and can make more money moving people than working at Wal-mart and guys who cant hold down a real job. THAT’S IT ! There really is no in-between. I have hired and fired over 200 of these employees. If the guys show up and look like they just woke up, got out of jail, are on drugs, drunk, or just look dishonest or stupid, Send them Packing !!! Don’t even let them pick up one piece of furniture. Once they have your stuff you have absolutely no recourse and will have to pay them whatever they demand in most cases. I would also highly recommend getting as many moving quotes as possible. Talking with people is just not enough. I have had hundreds of people mail me checks over $4,000 from just a conversation over the phone and out of state for that matter. They didn’t know me from Adam and are lucky I was a professional mover and not a professional criminal. I would use a credit card and not a check if it were me. At least you can reverse a credit card charge. Ask Questions. Lots of questions and get everything in writing.

    I would suggest that everyone at least check with someone like before they finalize their long distance move. They will have Professional movers competing for your business and in the end you will get a reliable mover at the right price.

  5. Hi! It is reported that 1 of 10 Americans are moving to date. It dropped significantly over a 10-year-period. it is said that due to the economic crisis, people prefer to stay around their area than go find work some place else.

    Moving companies are now developing eco-friendly ways for the shippers to save time and money and do the Earth good at the same time. these include usage of biofuels for their trucks and using reusable crates for packaging. if everything goes alright, it will be only a matter of time before moving industry will get back on its feet.

  6. hi, just thought i’d put in my 2 cents. it is often a better choice to go with a big van line not only because they can be held more accountable and have insurance but also because smaller movers are known to hold your belongings hostage and demand more money before releasing your stuff to you. i always go with north american and never have a problem. here are some reviews of north american van lines: navl reviews

  7. I think you are right. Every business has its draw back during the recession. Not even the tracking companies. even small time companies felt the damage caused by this recession. Sooner or later this crisis will hit Asian economy and eventually it spread globally. I hope that this will end soon. People suffers too much in terms of their business.

  8. Moving companies always had a smelly reputation. It is hard to imagine that there is still so many of them around. I am happy to use a very good moving company with good reviews.

  9. @ Arny
    It is good to know that at least something is working well in the time of recession. After the global melt down nothing seemed to be working fine. This breaking news created a hope of some better happenings. I generally opt for eco-friendly moving companies.  

  10. Yes, I think you are right. The country is in recession means there is slowdown in the demand from consumers and rise in fuel cost will affect the manufacturing industry. When there is no demand for the goods produced, then there will be reduction in producing activity like inventory and distribution which influence moving industry. With the present slowdown in the economy there is need for better quality of service with reduction in prices in the present competitive world. Moving industry plays an important role in the growth of an economy. An efficient and productive freight mover can help in growth of manufacturing productivity. Moving companies by using renewable energy and reusable packing material can help moving industry to put back on track. Think about moving your Kitchen! Would you do it yourself these days?

  11. I think that economy is hitting every industry and moving companies are certainly not going to be exempt from that. The set-up of many moving companies may make it easier for the industry to weather the storm, so to speak. I think you may need to look at what to cut back on and some may consider benefits, however this a bad idea in this industry I think. What you could consider is using a PEO to off-set the costs.

  12. We agree that the economy has affected some business but others have boosted from it. WE feel that a professional company will stay firmly grounded more so then a fly by night company.

  13. As a moving company in the 3rd largest city in the US (we’re a Chicago moving company), we’ve certainly not been as busy these past couple years. The start of the decline in people booking moves seemed to mirror the decline in the housing market / strike of the sub-prime problems. Less homes being built equals less moving jobs. People not being able to afford their monthly payments equals less jobs as they would like to do it themselves. Less companies relocating employees as they need to cut costs as well. All industries have suffered, no doubt about that. Chicago movers are no exception. We’ve been fortunate to have built an excellent reputation over the years and have been able to weather this storm, but it’ll be nice to see the moving industry, well, all the industries, get back on their feet. Good luck to us all!

  14. Recession is a global phenomenon. It has adverse effect over the economy. Movers are not exceptions. This problem can be solved with backup plans only. If you have great backup then only you can survive while recession. Thanks.

  15. In the recession time I had to move another county from Virginia due to my profession compulsion. As I have a family so it was very hectic to do it myself. I was looking for a company which provides reliable interstate moving without failure and I was luck to have Movers USA with us at reasonable cost which did matter at that time.

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  18. Nice post, I got to say that we did get heart from the bad economic, we are one of the good companies that are honest and all about customer service, but we do straggle against the companies that low ball customers, and always come cheaper than us in prices, it’s not been easy. I wish all you good companies good luck and success.

  19. The key to the success of your next move depends on the quality of people employed on it. Our success is a team effort. Over the years our company has attracted, trained and retained the best movers in the industry.

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