Factors Affecting Relocation – External & Internal

Need for Talent and Company Growth Drive Relocations, Impacts of Economic Conditions and Real Estate Market Continue to Diminish

While company growth remains the top internal condition influencing volumes for the fourth straight year, it remains similar to previous recessionary levels despite maintaining last year's substantial increase over 2009 (46% vs. 24%). For the first time in seven years, this factor inches ahead as the top reason for relocations overall. Lack of local talent is the top external factor, similar in weight to company growth (44% vs. 46%). Economic conditions (30%) and the real estate market (23%) decline slightly, falling within historical ranges for economic recoveries. Only small firms weigh local talent shortfalls more than company growth (43% vs. 35%). Generally, external pressures seem to be lessening. Company growth as a driver remains muted and is markedly below levels seen in previous periods of strong economic growth across company size, but most substantially among small firms.

  • The impact of external factors still varies by company size. At mid-size firms, need for talent outstripped economic conditions and real estate concerns nearly 2-to-1 (48% vs. 25%). Small firms viewed local talent (43%) and economic conditions (30%) as much more important than real estate (16%). Among large firms, the three factors remain more closely weighted (40%, 36%, 31%).
  • Even with a slight decline in the importance of available talent, it stands markedly above the level recorded in 2009 (31%) and far above much lower levels recorded before 1996. Regardless of company size, talent shortfalls remain one of the most forceful drivers of relocation volumes overall.
  • For both small and large firms, the impact of real estate is at its lowest point since measurement began in 2007. Only mid-size firms continue to report a slightly higher impact over the 2007 value (25% vs. 18%).
  • Financial firms felt the greatest impact of local talent shortfalls (58%), while nearly half of wholesale/retail (48%) and manufacturing/processing firms (44%) also viewed it as a key issue.
  • Company growth is the top internal factor, regardless of company size. Mid-size and large firms felt it more strongly than they did all other factors (54%+ vs. roughly a third or less). Among small firms, it was nearly equal in weight to promotions/resignations (35% vs. 32%).
  • The percentage of firms citing budget constraints remains within non-recessionary ranges.
  • National and international firms report the highest levels of company growth: around half say it had an impact on relocation, compared to just 31% of regional firms. Almost half (44%) of regional firms said promotions/resignations affected relocation volumes.
Question 13-1
External factors having the most impact on the number of employee relocations in 2013
Chart Q13
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Question 13-2
External factors having the most impact on the number of employee relocations in 2013
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Question 14-1
Internal conditions having the most impact on the number of employee relocations in 2013
Chart Q14
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Question 14-2
Internal conditions having the most impact on the number of employee relocations in 2013
Chart Q14-2
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