Price Forecast: Personnel Relocation Services

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  • Tags : HR & Staffing | Personnel Relocation Services | Price trend | Price forecast | Procurement research | Category market forecast

Recent Price Trend - Personnel Relocation Services


According to IBISWorld estimates, the price of personnel relocation services has grown at an average annual rate of 1.6% from 2014 to 2017. Demand for personnel relocation generally follows overall trends in the broader economy; improvements in the economy boost business growth, encouraging businesses to expand to a greater number of locations. In turn, businesses must typically relocate some employees to facilitate this growth. As demand for relocation services grows, suppliers raise prices.

Several external factors have contributed to the rise in demand for personnel relocation services in the three years to 2017. First, the number of employees in the United States has increased in the past three years, broadening the potential pool of employees for which buyers purchase relocation services. A greater number of employees also signals expansion, which often requires moves for key personnel. In addition, a rise in the house price index has contributed to growing demand because employees have been more willing to relocate because there is little fear that they will lose money on the sale of their homes. Thus, rising house prices have contributed to service price increases.

Corporate profit has trended downward slightly during the period. Nonetheless, a rebounding domestic economy has helped to bolster demand from many business buyers, allowing more businesses to expand and, thus, move their key employees to new offices. Supplier operating costs have also grown, as the moving services procured by operators increase in price. As such, these growing costs are passed on to buyers.

Buyers have been somewhat negatively impacted by rising prices stemming from demand growth, but the slow rate of price growth has not translated into significant declines in buyer power. In fact, the low level of price volatility during the period has ultimately benefited buyers. Namely, low price volatility reduces the likelihood that buyers will face price shocks and allows for more accurate financial planning.

 



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