The moving industry is not limited to one type of business. Rather, it includes opportunities in sectors such as residential moving, commercial moving, warehousing services, packing services, handling services, and freight transportation. Because of this, there is overlap between moving franchises and the general trucking business.
Aspiring entrepreneurs, especially those with logistics experience, should consider a moving company franchise as the “market size is projected to grow over the next five years” (IBISWorld).
Current Takeaways of the Moving Industry
According to the IBISWorld Market Research Report (2014-2029), a few insights worth noting include:
- Residential moving services are the largest segment in the industry
- Manufacturing regions rely on moving services
- It’s an industry with a low barrier to entry
3 Key Trends Driving the Moving & Transportation Franchise Industry
As with most industries, the moving industry doesn’t look the same as it did a decade ago as there are various trends making an impact.
#1 – Technology Integration
Technology is a huge asset to the moving industry as it increases its efficiency through route optimization, online booking, real-time tracking, and more.
#2 – Sustainability
The issue here is multi-faceted. Franchises in the moving industry need to be aware of a few things as they seek to run a sustainable business.
- The increasing demand for eco-friendly packaging and fuel-efficient fleets
- Both labor shortages and the growth in automation processes
- Challenges in recruiting skilled drivers and movers
#3 – Hybrid Business Models
It’s increasingly common for businesses to offer multiple services or products, allowing customers to get everything they need in one place. For example, a franchise could combine moving services with adjacent offerings like packing supplies, storage, or junk removal.
Reasons to Choose a Moving Company Franchise?
If you’re interested in owning a business, there are several reasons to consider buying a moving company franchise. These include:
- Proven business model and brand recognition – The moving industry is not only a competitive market, but it involves handling people’s most valued possessions. Trust, reliability, and operational efficiency, are key to success in this industry.
- Access to technology and resources – When you join a moving company franchise, it will come with access to established vendor networks for trucks, equipment, and logistics software.
- Recurring revenue and diverse revenue streams – A moving company franchise offers the potential for recurring revenue through long-term contracts (e.g., corporate relocations). Additionally, moving companies can offer multiple add-on services (such as packing/unpacking and junk removal), which attracts a wider customer base.
- Scalable business model – A moving franchise can start small with a few trucks and a team but scale operations as demand grows. Furthermore, in a franchise network, growth opportunities are streamlined through franchisor guidance and resources.
Challenges to Owning a Moving Company Franchise
Even the most successful businesses have hurdles to overcome. A few potential challenges to consider with the moving industry include:
- Seasonality of demand – In the moving industry, the peaks will be in the summer months, requiring additional planning for maintaining revenue in the off seasons.
- High upfront costs – While there are multiple income opportunities in this industry, franchisees will have to manage the initial costs for trucks, equipment, and licensing.
- Insurance requirements and liability risks – While these can be complex matters, franchises will certainly help its franchisees navigate them.
- Competitive market – Franchisees will need to find ways to recruit and retain skilled labor in a saturated market.
Interested in a Moving or Transportation Franchise?
Thinking about buying a franchise in the moving and transportation industry? Whether you want to own a moving franchise, or you’re interested in a different sector, FranNet is here to help. Our franchise consultants are experienced at helping aspiring franchisees find an opportunity that aligns with their personal goals. We’ll walk you through the process of buying a franchise, answering any questions you have along the way. Schedule your free consultation to get started!