Lessons Learned from the Pandemic: Innovation and Diversification Move the Needle for Growth
From boom to bust
The record home sales and relocations following the pandemic were certainly an anomaly, and let’s be honest, not one we’re likely to see again soon. The combination of low interest rates, a robust housing market, the increase of work-from-home opportunities, and the urban exodus all added up to a moving boom in which one in every five adults in the U.S. moved or knew someone that did due to COVID-19. Moving companies saw explosive increases in moving jobs and enjoyed the uptick in revenue.
And now we’re in a slowdown. Only 25.6 million Americans moved in 2023, 9% fewer than in 2022. That’s not surprising, when you consider that elevated home prices, higher mortgage rates, a prolonged inventory shortage and inflation continue to plague the housing market.
Despite mortgage rates stabilizing in the first two months of 2024, the housing market experienced a slowdown in March due to the rebound in rates. Total (existing + new) home sales for March fell by 2.7% from February and were down 2.1% from a year ago, according to Freddie Mac.
While home prices stabilized, a major difference between today’s market and the pre-pandemic period is the relatively low number of transactions, largely due to high mortgage rates. The housing market continues to evolve and pose new challenges and opportunities for movers.
The pandemic pivot: a lesson in adapting to a fluctuating landscape
As was the case for everyone, the Moving & Storage Industry had to pivot during the pandemic.
Many operations were forced to innovate to stay competitive and meet customer demands for contactless services. Digital innovations improved the customer experience and led to improved operational efficiency for moving operations:
- Video surveys
- Virtual meetings via online platforms
- Touch-less payment options
- Online self-booking
Movers that embraced the integration of technology to offer cutting-edge solutions and services, were successful in differentiating themselves from the competition, and attracting customers looking for innovative and reliable moving solutions.
Taking a page from the pandemic playbook
Moving companies that continue to invest in and embrace new technology and innovative services will be better positioned to adapt to the evolving demands of the market. They will be able to offer a superior customer experience, improve efficiency, and build their brand.
Here are some innovative strategies to consider:
- Diversify your Operations – consider adding new services such as junk hauling, temporary storage pods and specialized packing and unpacking services.
- Chatbots and AI Assistants provide immediate customer service to sort queries, give quick guidance, and even help book a move.
- AI for route optimization, demand forecasting, and resource allocation to make moves more efficient and cost-effective. AI also creates personalized customer experiences through data analysis, predicting customer needs and preferences to enable movers to tailor their services more effectively.
- Blockchain technology secures transactions and ensures the integrity of contracts, building trust with customers.
- Internet of Things (IoT) technology can revolutionize the way moving companies manage and track their fleets and customers’ items in real time, providing complete transparency.
- Eco-Friendly Moving or Green Moving minimizes the environmental impact during the moving process: using reusable plastic bins and packing materials made from recyclable or biodegradable materials, and investing in hybrid or electric trucks.
- On-Demand Moving Services – As customers seek more personalized experiences, on-demand custom moving services fill that need. Taking into consideration the budget, timeline, and type of items being moved, customers can choose the specific service they want.
- Mobile Apps – Booking, tracking and paying for a move can be as easy as placing an online order. This adds convenience for customers and benefits moving companies with improved logistics, route optimization, and better customer engagement through mobile.
- Virtual Reality in the Moving Process – Give customers a realistic virtual tour of their new space to create a better room layout prior to the move.
- Robotics – Robots can efficiently pack and unpack items into moving boxes, and can be programmed to recognize and handle various objects, ensuring they are packed safely and securely.
- Smart Packing Algorithms – Advanced algorithms can determine the most efficient way to pack items into boxes to optimize space utilization and reduce the number of boxes needed.
- Automated Labeling and Inventory Tracking – RFID (Radio-Frequency Identification) and barcode technology can automatically label items as they are packed. This simplifies the process of identifying and cataloging belongings. In the future, adopting such technology may vary based on the size and resources of moving companies and customers’ preferences.
The adoption of advanced technologies and innovative services helped movers weather the market pressures caused by the pandemic. Many were able to reduce disruptions to their operations and sustain forward momentum, giving them the competitive advantage during the post-pandemic boom. Today’s fluctuating housing market and economy are providing another unique opportunity for proactive moving and storage companies to differentiate themselves as leaders. I’m excited to see how far movers move the needle!
Written By: Brandon Laam
Brandon has been a transportation insurance specialist for over 10 years, and is constantly striving to create enhanced services for brokers and insureds.
Brandon spearheads the MOVER’S CHOICE philanthropy efforts with Move for Hunger, a national organization working with the moving industry to reduce food waste and fight hunger. Outside of the office, Brandon likes to fish, hike, kayak, garden and read.