Following Brexit, many firms started moving out of the United Kingdom and individuals working in different industries were also caught in the confusion. This led to a rise in demand in the removals industry in the short term. This is an industry whose demand is highly dependent on things that happen in the commercial or residential property markets as well as the willingness of customers to spend on different extras that are offered by specialist removal firms.
Over the past five years, the industry has recorded impressive performance and experts project that revenues will rise at an annual compounded rate of 1.4% in the period running through 2017-2019. With government support coming in to support the housing market between 2013 and 2014, the market was rejuvenated and demand for removals services surged. The significant increase in transactions within the property market between 2013 and 2014 contributed to a growth in the removals industry.
Industry Opportunities and Threats
Many people are looking for statistical projections from the year 2018 going forward since there has been a bit of a disruption in the commercial and residential housing market. There are still some speculations due to changes that have been brought about by the lowering of fuel costs, which has attracted new entrants and therefore increased competition. The EU referendum caused uncertainty among buyers as many people who wanted to invest in purchasing property were triggered to hold off, and this consequently lowered demand, which directly affected the removals industry.
Additionally, businesses that are leaving the UK are expected to affect long-term demand. Most of these movements carried along professionals who had earlier migrated into the UK from other parts to work at companies. The effect has been a huge drop in demand in some areas especially industrial cities, so in reflection this could be said to have in a way killed the removals industry. However, experts argue that industry is expected to see more growth in the phase running from 2019 to 2023.
The removals industry is considered to have reached the apex of its life cycle and in the 10 years running through 2022-23. The industry will grow at an annual compounded rate of 1.9%, which is in line with the projected GDP growth of 2%. With consolidation likely to increase in the 10 year period running through 2022-23, the corporate moves market will also grow and this will present more opportunities for the industry. Businesses that expect to stay in the already competitive industry should invest in optimum capacity utilization, get a diverse range of clients, and work on building a good reputation. These are necessary because the barrier to entry is quite low and competition will soar in coming years.
Moving companies like Transport Executive have continued to invest in building a strong portfolio in the removals industry. Although many people believe the removals industry has faced a major challenge following the Brexit vote, there is still hope the industry could see growth in coming years. The industry is projected to get more competitive due to the fact there is a low barrier to entry, so those who would like to remain relevant have to invest in providing high-quality services and build a positive reputation.