Issue - January/February 2025

Assess, Respond, and Adapt
I have always found the relocation and moving industry to be mostly apolitical. As a result of our business, we have all formed friendships with people with different experiences, cultures, and world views. Politics may come up when we get together at conventions and meetings, but for the most part, we rarely draw hard lines on the topic. It is one of the true joys of this industry to experience all the different points of view, cultures, and governments. In truth, many of us would never be exposed to such a variety if not for this industry. And we are all the better for it.
But now, we are at a unique point in history, with major significant actions in more than 70 countries over the past year. Elections can bring optimism, pessimism, and even fear. They can either jump-start a country’s economy or cause a downturn. They can mandate positive or negative change or put a firm stamp on the status quo. The geopolitical climate has rarely been as volatile as it is today. The potential changes in administrations and governments surely will play a key role in how and where we do business. With the number of elections in 2024, the global outlook could look very different by the end of 2025.
Here in the U.S., the results of our recent Presidential election were a global topic. At the IAM Annual Meeting in Las Vegas, I had numerous conversations with friends from around the world, discussing what we thought would happen and how it would impact our business and lives. Now that the election has been decided, the incoming administration will undoubtedly affect our business. The current global economic climate has forced everyone, however reticent, to focus on increasing efficiencies and maximizing their business as best as possible in what is widely seen as a diminished market for our services.
An inward focus is expected in the U.S., and turning away from the global economy is likely to lead to a loss of relocation opportunities. The last time the incoming administration was in power, we saw a reduction in the number of granted work visas. Subsequently, many foreign companies reduced the number of staff they sent to the U.S. It remains to be seen if we see a replay of this over the next four years, but given that immigration was a significant topic of the campaign, it is unlikely there won’t be a meaningful impact.
Tariffs were another focal point of the incoming administration’s campaign. There has already been talk about increases and more restrictive tariffs for several countries as the administration seeks to establish a new power dynamic and drive more jobs and thus business in the country. While these kinds of import tariffs do not directly impact household goods, the potential resulting change in supply chain patterns can have a dramatic effect on the cost of freight, availability of equipment, and transit times. Higher tariffs designed to reduce the flow of foreign goods into the country can lead to increased ocean rates as overall demand decreases and carriers seek to replace the lost revenue elsewhere.
As we all saw during the pandemic, the global supply chain is a massive yet delicate organism. Like the butterfly and the hurricane, small changes in one area of the world can have a cascading impact. Rolling equipment shortages and oversupply have been a way of life since the pandemic. Reduced volume from certain countries due to tariffs could exacerbate the situation as the normal flow of equipment is disrupted. This again can contribute to higher costs as carriers are forced to reposition equipment.
As mere spectators in the events that will play out in this post-election climate, we can often only react to changes and try to adapt as best we can. It is imperative—arguably more so than ever before—that we stay informed and keep a clear-eyed look at the global climate, which is key to remaining competitive. Working to keep our customers informed should always be a major focus. We must remain empathetic to customers who will need help understanding how some of the geopolitical situations may impact their relocation. Organizations like IAM are key in this effort. While we may not have the ability to change these major global events, we can all work together to navigate the situation. With changes like we see worldwide, there is always opportunity. Through our relationships with all our global partners, we can take advantage of these opportunities when they present themselves. 2024 was a year of change. Now, it is up to us to respond and adapt.