While aggregated data on global mobility statistics are not readily available, the United States Census data may provide some insight. As the US is the most mobile society in the world, conclusions may not be readily applied globally but the US statistics may point to general trends affecting mobility.
The table below is taken from the latest US Census data released November of 2018.
- Of all Americans (320 million)
- 31 million persons moved – 9.78%
- The mobility ratio has dropped steadily from 11.16% in 2015-2016
- International mobility rates have also dropped steadily
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- Taking the average American household size of 2.3 people, this means 15.3 million American households move each year.
- The vast majority of those 15.3 million households that move do not employ a professional moving company. In fact, many address changes involve nothing more than a few suitcases and some boxes. If we look at the US Interstate moving segment for example, about 3 million households moved between states. Of those:
- by professional movers: 550,000 – about 18%
- by consumer with rented truck: 1 million
- by consumer unassisted: 1.4 million
So, for the US interstate moving segment about 18% used a professional moving company.
Moving, relocation and mobility related services is a multi-billion dollar global industry. While a number of regional and global relocation companies have emerged, most of the business is still served by small to medium-sized entrepreneurial companies that cooperate together in a non-contractual, ad-hoc manner to system to serve customers on a door-to-door basis. This “agent-to-agent” system has served the industry well for hundreds of years and will continue to provide the framework for cooperation into the future.
What the US census data points to is a drop in mobility rates in the United States. What it does not show are the other complex factors that are negatively impacting the mobility services industry. Those that will admit it point to a drop in shipment counts and volumes especially in the corporate relocation market.
To add to industry challenges, business today is defined by hyper competition and the relentless drive to improve efficiency and quality. “Better, faster, newer, and at lower prices” are no longer points of differentiation; they are customer expectations. The challenge for the small and medium sized businesses that make up the bulk of the mobility services industry is to keep up with the demands of these rapid and ever accelerating changes. The fragmented nature of the industry makes it difficult for smaller businesses to invest in the R&D and technology required to reinvent their businesses.
Plotting a course and implementing a successful strategy while dealing with the pressures of today’s priorities can be a challenge. Intelexe offers a helping hand and business solutions to the mobility services industry. We specialize in leveraging technology and creating collaborative environments which foster the sharing of common resources for the benefit of the entire industry.
Ray daSilva
Principal – Intelexe, LLC
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