If you’ve ever dreamed of becoming your own boss and starting your own business, you’ll understand there are many questions you need answered before leaving your current job and going all in.
Of course, the first thing you need to decide is what business to invest in, and whether that particular opportunity is right for you and your desires as a business or franchise owner. That’s why we’re here, to give you insight into the moving company franchise industry, and to help you better understand why investing in a moving company, such as TWO MEN AND A TRUCK®, is a smart business move.
Here’s what you need to know about the moving industry and investing in a moving company franchise system.
Demand and outlook for the moving industry
According to statistics provided by the United States Census Bureau, Americans typically move between 11 and 12 times during their lives. In those moves, they often spend, on average, nearly $1,200 to move the equivalent of a four-bedroom home within the same city.
People will always be moving – from college kids moving from dorm to dorm or apartment to apartment, to families expanding, buying new houses, and getting new jobs – people don’t stay in the same place forever. Services provided by moving company franchises, especially an industry leader like TWO MEN AND A TRUCK®, is as essential as finding a reliable local mechanic you know you can trust, or a coffee shop you can always depend on. There are certain things that people will always need, and this makes the moving industry timeless.
The five-year forecast for industry growth is a positive one. Per IBISWorld, the moving company industry has grown, on average, by three percent annually for each of the past five years, and is expected to thrive at a higher level moving forward.
According to TWO MEN AND A TRUCK®’s own system numbers, the company has now posted positive growth numbers for 90 consecutive months, and is completing two moves per minute. The system also recently completed their 6.5 millionth move, showing just how strong the moving industry is.
There’s really never been a better time to invest in a moving company franchise.
One of the biggest factors to consider when opening any business is what type of generational impact the youngest, incoming generation of consumers will make. Hint: When it comes to millennials, it’s not a small one.
Millennials are the largest generation in United States history – larger than even their Baby Boomer parents. The simple economic impact of that many young people spending money will be substantial, but it’s how they’re spending their money that’s of particular interest in relation to opening a moving company franchise.
Consider the following: A growing percentage of the oldest millennials (aged 25 to 34) were renting homes instead of buying them as of 2013 data compiled by Goldman Sachs – 60 percent of them, actually, as opposed to just 52 percent in 2005. Of course, with renting comes shorter periods of stay in one particular home, so millennials in turn are moving more than any generation ever before.
But that’s not all. Millennials job hop more than any other generation, per Forbes, and they prioritize traveling over everything but the basic essentials – a combination which is tailor made for the moving industry.
Of course, as Goldman Sachs points out, that doesn’t mean millennials don’t want to own a home – they’re simply waiting longer and saving more money to do so. As their generation finally starts reaching their “peak home-buying years” – defined as 25-45 years old – their size and willingness to begin settling will have another massive impact on both the housing and moving industries.
There’s more to the generational impact than just their home-buying trends, however. Millennials tend to turn to convenience services that allow them to focus on other things. It’s why data, like the information compiled by Time, shows they spend so much money on fast-casual dining, same-day delivery charges (for everything from typical Amazon purchases to food and even alcohol delivery), and “athleisure” – leisure-wear that qualifies as athletic clothing. All of them are quick, convenient, and take the hassle out of even the simplest of tasks like getting dressed and eating dinner.
So how does that relate to the moving industry? Think back to the last time you lugged your king-size mattress or large, oddly-shaped sofa into a home, and you’ll realize that letting someone else do that for you is just as much of a convenience service that appeals to millennials as anything else.
Considering millennials are “just starting to enter their strong earning years,” they’ll be more likely than ever to spring for the cost of letting someone else move their furniture and possessions for them. There’s never been a better time to invest in a moving company franchise!