The Message Across California: Our Industry is Struggling
Throughout my travels as Chairwoman, one message has been loud and clear across all of California: our industry is struggling.
This challenge is not limited to one segment of the market. Not only is the military moving sector facing serious hardship, but the COD and civilian markets are also challenged.
We are operating in a period when home sales are down, interest rates remain high, and many families are choosing to stay in place rather than leave homes tied to low mortgage rates. The overall economy directly impacts our business, and movers everywhere are feeling the effects.
On the military side, we have seen firsthand the struggles created by the implementation of the Global Household Goods Contract in 2025. The negative impact on our industry has been significant. The rates we were required to file are equivalent to the revenue levels we achieved in 2000.
In addition, drivers no longer receive a fuel surcharge, creating an even greater financial strain across the board.
What can we do to succeed in this environment?
We must remain diligent. We must watch our expenses closely, monitor the profit and loss statement, and stay focused on net profit. Personally, I review my own financials weekly. If you are not making money, you must cut expenses and review every bill that comes into your office. Every dollar matters right now.
At the same time, we must be willing to pivot and explore new ways to generate revenue. Many companies are finding success by expanding into other areas of the industry, such as final mile delivery, Costco and Wayfair distribution, increased office and industrial relocations, and specialized work for hotels, schools, and commercial clients. There are still opportunities, but we may need to think differently and adapt to stay strong.
And while we are already facing numerous obstacles, the government has now imposed yet another hurdle: Cybersecurity compliance under CMMC (Cybersecurity Maturity Model Certification).
This will be a significant cost for Transportation Service Providers nationwide. The deadline for Level 1 self-certification is March 15, 2026. Then in 2027, Level 2 compliance will be required, bringing even greater expense and complexity to our industry.
Now that U.S. TRANSCOM leadership has been removed and the program is under the direction of the PPA, we can only hope for positive changes going forward.
My prayer is that 2026 will be a better year for all of us. I know our industry can pull out of this difficult period, regain stability, and continue to enjoy being movers again.