Let’s be clear: we all understand that Household Good Moving has been challenged ever since the rise of interest rates in July of 2023. The Home sales boom that had been our reality since the early summer of 2020 seemed to many of us to come to a rather abrupt stop in the summer of 2023. The longest peak season in our industry’s history ended, and many companies quickly found themselves in a difficult position. All the more reason for diversification, a subject for another column. More than a few have shared that even though their top line was at record levels during this period, it didn’t always provide an opportunity to squirrel away gains because the pandemic-related top-line gains also brought with it significant pressures to the bottom line. A result of significant cost increases associated with service. Movers experienced increases, sometimes dramatic and, so far, permanent, in areas such as labor, equipment, corrugated and wood-based materials, fuel, insurance, and real estate, to name some of the more critical and impactful areas.

While we as a national industry have been impacted, we are not alone, and the Board of Governors of the Federal Reserve System is working to reduce inflation down to a nominal rate of around 2% inflation and, with that, a reduction in interest rates that would surely positively impact home sales and the moving industry. Economists generally believe that interest rates will begin dropping this summer and cite the fact that inflation appears to be moderating and historical financial cycles related to a presidential election involving an incumbent as reasons for optimism.

I know many of the impacts our industry is experiencing, having faced several major economic cycles as a mover and an association executive. In a down cycle, we frequently reach for every perceived opportunity, some of which can lead to potential negative issues. Some assume, correctly or not, that others are taking away opportunities that are rightfully theirs. This can lead them down the rabbit hole of illegal/unlicensed operators and raise concerns that regulators don’t understand or appreciate the legal and permitted mover's challenges.

Having regular engagement with the leadership and staff at the Bureau of Household Goods and Services (BHGS), I can tell you this is not the case. They understand that those working to follow the regulations and serve the moving public to the best of their ability have been challenged during this downturn. Their philosophy of focusing resources on the significant issues that are frequently the common practice of the illegal/unlicensed operator has not changed. While movers search social media for potential violators, BHGS enforcement staff follows the Department of Consumer Affairs (DCA) enforcement protocol, which involves a hierarchy of enforcement actions based on consumer complaints that contain allegations based upon potential consequences. Complaints related to gross negligence/incompetence, elder abuse, and fraud are given the highest priority.

It is difficult for me to envision a regulatory agency that could do a better job for movers and the moving public than BHGS. That being said, there is always room for improvement for all of us. And we will continue to advocate for our members, the legal and permitted mover.

I encourage you to register for our upcoming convention before the hotel stops offering rooms at the terrific rate that we were able to negotiate. Hope to see you there!

February 2024 - CMSA Communicator