Factors Impacting Relocation – External & Internal

Need for Talent and Company Growth Drive Relocation; Impacts of Economic Conditions and Real Estate Diminish

Recovery in 2012 remained hindered by economic conditions. The importance of qualified talent remained near pre-recession highs (49% vs. 52%+) and overshadowed economic conditions (34%) and real estate issues (28%) by a sizable margin. However, the impact varies by company size. For mid-size and small firms, talent needs clearly outstripped economic conditions and real estate concerns (47% vs. 31% and 32%, 49% vs. 31% and 17%). For large firms, lack of local talent, economic conditions, and real estate market concerns remain closely weighted (49%, 42% and 38%, respectively). However, real estate's impact on volumes fell close to 2007 (28% vs. 22%) overall, continuing a decline from the high in 2008 (40%).

  • The overall percentage of firms reporting economic conditions as a major factor has declined since 2009 (34% vs. 53%). Although near historical levels for recoveries, with the exception of large firms it remains above levels seen during periods of strong economic growth.
  • The impact of the lack of qualified local talent remains high on the heels of a two-year rebound from a thirteen-year low (31%). The story is the same across company size, as talent shortfalls remain the largest driver of relocation volumes overall.
  • Mid-size firms felt the impact of real estate much more acutely in 2012 than they did in 2007 (38% vs. 18%), the first year the survey measured it. Small and large firms noticed little difference.

Additionally...

  • For the third straight year, company growth tops the internal conditions that affected volumes (after falling to third place in 2008 and fifth in 2009).
  • The percentage of firms citing budget constraints remains within non-recessionary ranges.
  • The percentage of firms citing company growth remains similar to previous recessionary levels—even though its increase remains substantially above 2009 (46% vs. 24%). The slow improvement reflects the protracted nature of this economic recovery and the severity of the most recent contraction.
  • Company growth is the top internal factor, regardless of company size. It shows nearly double the impact of other factors (47% vs. 27% or less) for small firms. It is closely followed by promotions/resignations and corporate reorganization/restructuring at mid-size firms (44% vs. 41% and 37%), and by knowledge/skills transfers and corporate reorganization/restructuring at large firms (48% vs. 44% and 43%).
Question 13-1
External factors having the most impact on the number of employee relocations in 2012
Chart Q13
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Question 13-2
External factors having the most impact on the number of employee relocations in 2012
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Question 14-1
Internal conditions having the most impact on the number of employee relocations in 2012
Chart Q14
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Question 14-2
Internal conditions having the most impact on the number of employee relocations in 2012
Chart Q14-2
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