Issue - January/February 2025

How Movers Can Remain Competitive as U.S. Government Policies Shift
The 2024 U.S. presidential election and return of a Trump administration is expected to bring significant changes in government policies, affecting domestic and global relocation trends. These changes, combined with a shift towards nearshoring, will be influenced by economic, regulatory, and geopolitical factors. Movers need to understand these shifts to stay competitive in a rapidly evolving market.
Economic and Regulatory Shifts
Since the early 1990s, the U.S. economy has grown significantly, with GDP rising from $6.5 trillion to $27 trillion. This growth period saw historically low interest rates and increased global corporate investment, greatly boosting demand for moving services. However, this expansion also led to a growing trade deficit, increased government debt, and social discontent due to offshoring of American jobs.
The 2020 pandemic highlighted the vulnerabilities in global supply chains, leading to shortages and higher consumer prices. In response, companies began nearshoring—outsourcing to nearby countries—to leverage proximity and cost efficiencies. For example, in recent years, automotive and aerospace manufacturing has shifted from East Asia to Mexico.
The Trump administration is likely to continue promoting nearshoring by imposing high tariffs on Chinese goods and renegotiating trade agreements with Canada and Mexico. This will boost job growth in the U.S. and increase cross-border trade within North America, driving demand for domestic and cross-border relocation services.
Relocation Trends
1. Nearshoring Effects:
Job Growth in the Americas: More jobs in North and South America, especially Mexico, will lead to increased relocation of skilled labor.
Short-Term Assignments: Companies may prefer shorter-term assignments, reducing long-term relocations.
Cost-Effective Moves: More budget-conscious relocations with lump sum or capped budgets.
Language and Culture: Spanish fluency will be advantageous, and there will be a higher demand for infrastructure projects in Latin America.
2. Domestic Trends:
Urban to Suburban Shifts: Policies favoring deregulation and lower taxes may encourage moves from urban to suburban or rural areas.
Increased Mobility: Return to office policies will influence domestic relocation patterns as employees move back or opt-out, preferring remote work.
Strategies for Movers
To remain competitive, movers should adopt the following strategies:
1. Embrace Technology:
Digital Tools: Invest in digital platforms to streamline operations and improve customer service.
Data Analytics: Use analytics to understand customer preferences and optimize routes.
2. Enhance Customer Engagement:
Personalized Services: Offer tailored solutions for different customer segments.
Customer Feedback: Collect and act on feedback to improve services.
3. Expand Services:
Diversification: Include storage, packing, and relocation consulting services.
Partnerships: Form partnerships with real estate agents and local businesses.
4. Focus on Sustainability:
Eco-Friendly Practices: Use sustainable materials and optimize logistics to reduce carbon footprints.
Green Certifications: Obtain certifications to attract environmentally-conscious customers.
5. Strengthen Online Presence:
SEO and Marketing: Optimize your website and invest in digital marketing.
Social Media: Engage with customers on social media platforms.
6. Adapt to Regulations:
Compliance: Stay informed about regulatory changes and ensure compliance.
Advocacy: Participate in industry associations to influence policy decisions.
Post-2024 election policy shifts will significantly affect relocation trends. Movers must adapt by embracing technology, enhancing customer engagement, expanding services, focusing on sustainability, strengthening their online presence, and staying compliant with regulations. These strategies will help them remain competitive in a changing market.