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The moving and storage industry is experiencing a number of unfavorable circumstances that have converged to create “the perfect storm” from a business perspective. Reed analyzes the issues that have lead to the current situation by drawing on views from economic and demographic experts as well as notable industry leaders.

By Eric Reed, CRP, GMS as published in Wordwide ERC's MOBILITY Online June 2010

“The Perfect Storm” is “an expression that describes an event where a rare combination of circumstances will aggravate a situation drastically.” When most people hear the expression, they think of the popular movie by the same name that was released in June 2000. The movie was based on the true story of a swordfishing boat called the Andrea Gail and its crew of six who were lost at sea during a massive storm that hit the East Coast in October 1991.

David Valle of The National Weather Service described the storm as the result of three separate weather systems coming together with deadly consequences. The storm created sustained winds of up to 60 miles per hour and waves of up to 75 feet in height, leaving “extensive and widespread” damage along the Atlantic seaboard.

Analyzing the Perfect Storm
The moving and storage industry is experiencing a number of unfavorable circumstances that have converged to create “the perfect storm.” Based on the most recent mobility statistics from the United States Census Bureau, only 11.9 percent of the U.S. population relocated from March 2007 to March 2008. This was the lowest rate recorded since the government began tracking this trend in the late 1940s. The historically low trend reportedly continued during 2008 and 2009, when long distance moving in particular remained stagnant. What caused this significant decline in the U.S. mobility rate?

A Significant Decline
On January 10, 2010, the New York Times posted a blog on its website, “A Nation of Hunkered-down Homebodies” (see article below). Several noted experts participated in the blog and provided their opinions (based on research and experience) as to what factors led to the U.S. decline in mobility rates. The blog provides interesting insight into what became “the perfect storm” for the moving and storage industry. >>>

Related Articles:

A Nation of Hunkered-Down Homebodies – The New York Times

An Interview with Linda Bauer Darr – CEO of the American Moving & Storage Association (AMSA) on the Present and Future of the Moving & Storage Industry – Eric Reed Online

An Interview with Glen E. Dunkerson – CEO of Atlas Worldwide and Atlas Van Lines on the Present and Future of the Moving & Storage Industry – Eric Reed Online

An Interview with Michael Wolfe – President of Allied Van Lines and northAmerican Van Lines on the Present and Future of the Moving & Storage Industry – Eric Reed Online

Crossroads in the moving & storage industry - RELORoundtable

What's your company doing to weather the storm?  When do you expect to see blue skies again?