AmplifierCorporate Relocation > 52nd Annual Atlas Corporate Relocation Survey

52nd Annual Atlas Corporate Relocation Survey

4/10/2019 CRS-Header-(2).png
 

Who Responded?
Invited via email, 444 decision-makers completed an online questionnaire between January 15 and February 22. Each respondent has responsibility for relocation and is employed by a company that has either relocated employees during the past two years or plans to relocate employees this year.

For analysis, firms are categorized by size:
SMALL
Fewer than 500 salaried employees (36 percent)

MID-SIZE
500-4,999 salaried employees (36 percent)

LARGE
5,000+ salaried employees (29 percent)

46 percent work in firms that relocate employees internationally.

Relocation Volume & Budgets
In general, 2018 was positive for the relocation industry; roughly nine out of ten organizations indicate both volumes and budgets either held steady or increased.  Projections for 2019 are similarly optimistic. Among firms relocating employees internationally, 48% saw increases in international volumes last year and 47% expect increases in 2019. Around one-seventh of firms saw decreased volumes last year and expect decreased international activity in 2019. While projected increases appear to outpace decreases roughly three-to-one, Brexit looms as a wild card. One-fifth of firms moving employees internationally are unsure of Brexit’s impact on 2019 volumes.

Tax Reform’s Impact
The passing of the U.S. Tax Cuts and Jobs Act eliminated the moving-expenses deduction for 2018-2025. We incorporated additional questions to assess the potential impact of this bill last year and we continue to investigate it.

Tax Reform's Impact – Number of Relocations Performed

Number of relocations performedChart-1-(3).png

  • When survey respondents in early 2018 considered the law’s potential impact, the picture was highly uncertain. However, the data shows a positive impact, with higher relocation volumes rather than negative. This was most strongly expected and reported among mid-size firms, followed by small. Gains and losses essentially zeroed out for large firms, making the overall impact negligible for them.
  •  Looking toward 2019-2025, projections across company size shift in favor of increases. Around a third of firms project greater volumes, compared to roughly one out of seven projecting a decrease.


Tax Reform's Impact – Relocation Admin Complexity

Chart-2.png
Complexity of relocation administration

  • Around four out of ten firms expected increases in the complexity of administration in 2018. Data showed their projections were spot on.








 
 
4 out of 10 firms expected increases in the complexity of administration in 2018.
 


Tax Reform's Impact – Relocation Costs

Chart-3.pngRelocation costs

  • Around half of organizations expected the law to cause an increase in relocation costs in 2018, and their expectations were realized. Projections among mid-size and large firms were spot on; small firms report more increases than projected (42% vs. 31%).
  • Essentially half or more of firms across company size expect increased costs in 2019-2025. Very few expect tax reform will save them money; they see it is costing them more and expect it will continue to do so.




Tax Reform's Impact – Relocation Policy Changes

Chart-4-(2).pngRelocation policy changes

  • Roughly four out of ten firms expected relocation policy changes in response to tax reform in 2018. Expectations essentially became reality.
  • More mid-size and large firms felt this would be the case than small firms, and their expectations proved true. More than a third (37%) of large firms and almost half (47%) of mid-size firms made changes last year because of tax reform. Just 28% of small firms did so.
  • While a third of firms overall expect additional policy adjustments during 2019-2025, such anticipation is greatest among mid-size firms (45%).
 
4/10 firms expected increases in relocation policy changes
Not only is tax reform making relocation more expensive and administratively complex, policy changes are still evolving in response to it.
 



Tax Reform's Impact – Difficulty Recruiting Employees

Chart-5-(1).pngDifficulty recruiting employees to relocate

  • Overall, around half of organizations expected the law to have no effect on the difficulty to recruit employees in 2018; around half reported the same as well as similar expectations for 2019-2025.
  • However, the impact was dissimilar across company size: 36% of mid-size firms experienced greater recruiting difficulty, followed by 30% of small firms.  Large firms felt the impact least (21%).
  • Expectations for 2019-2025 are similar: mid-size firms project more difficulty (42%), followed by small (34%), with large firms the least likely (27%) to expect greater difficulty in recruiting employees.

Featured

Drive On: Technology Keeps Atlas® Agents Ahead of the Curve

“Transportation is a high volume and low margin business,” comments Jack Griffin, Chairman & CEO, Atlas® World Group. “The second you come to terms with that, you realize the only way you’re going to be successful and serve customers with quality is to be the most efficient you can be. Technology is first and foremost in accomplishing that.”

...read more

Moving in Sync

“Relocation is like a dance,” says Jack Griffin, Atlas® World Group Chairman & CEO. “When partners are in step with one another they can create a seamless move experience for the customer.”

...read more

LEAD: Atlas Answers the Call

The history of Atlas® is a story of leadership. In 1948, 33 independent moving companies formed the cooperative “Atlas Van-Lines, Inc.” and affirmed that “each member was to render service on his brother member’s loads of the character that he would expect on his own business.”

...read more

People

Exceeding Expectations Since 1944

On May 16, 2019, Merchants Moving & Storage, Inc. (1401) held an open house to celebrate their 75th business anniversary in Boise, Idaho.

...read more

Real-Life Training Simulation

Training is essential in the moving industry for a number of key reasons. 

...read more

PVO Spotlight

In this edition of the Amplifier, Atlas would like to recognize two PVOs who truly go above and beyond in their job. 

...read more

Events

Fifty Years of Forum Memories

Atlas Agent Bob Shetler, Chairman and CEO of Shetler Moving & Storage (1830), holds an impressive distinction. He is the only person in the world who has attended every Atlas Forum — all 50 of them.  The Amplifier caught up with Bob by phone a few weeks before the Forum, and he shared his memories — some a little fuzzy, but most as clear as crystal.

...read more

50th Annual Atlas Corporate Relocation Survey 50 Years in the Making

Over the past 50 years, Atlas® has monitored relocation policy and practice via our annual Corporate Relocation Survey to better understand how demographic, geopolitical and economic shifts affect the industry year to year. 

...read more

BRAVO Week Recap: You Drive Us.

The last full week of September (26-30), Atlas and its network of agencies celebrated BRAVO (Boosting Recognition of Atlas Van Operators) Week, an appreciation event for all the PVO's hard work and dedication throughout the year.

...read more