That skewed hierarchy

(Note: This was written in response to the many questions I have received over the past months about the relocation industry, it's changes and trends. I am speaking here primarily about national account corporate relocation. -Ed.)
It's been almost thirty years since the household goods industry was deregulated. Free market, Darwinian economic factors have held sway, and many changes have occurred. The end result is that the ball carrier, that beast of burden who performs most of the true "work" involved in the movement of HHG has been left in the rear of the caravan and has to be pleased with the "scraps" of the revenue stream. The moving company, that beast of burden that performs most of the drudgery involved in the service of relocation, has been left in the dust. Corporate customers, flexing their market share muscle, and aware that the relocation industry is truly "static" (we cannot create new customers), offer contracts only with large discounts attached. Third party providers (those who sell a cafeteria plan mentality to these same corporate customers), offer realty services, third party, banking and transfer services,and also moving services. These same "third party" players also sign on movers with appropriate attached percentages. There are many other revenue feeders floating in this service sector, but the end result is a weakening of the moving company's role and therefore importance and pricing in the relocation industry. Ironic, when not so long ago, these moving companies relations with their respective corporate customers were direct, linear and discount free. An example: In the past, you entered a store, sought out a sales person, were guided in the selection of a well made pair of pants, paid the marked price, and left. Direct and simple. Now, you enter a huge warehouse like building, wade through tiers of staff and personnel of varying roles, select a pair of pants yourself, tell the sales person holding the pants you will not pay $67.00 dollars, but will pay $40.00, take the pants and leave. A chaotic marketplace? Yes, and one that has turned bazaarlike, with multitudes of salesmen (vendors) waving different services and screaming out differing prices. The losers in this carnival: those buying the pants, and those selling the pants. (i.e. Those being moved and the movers.) Moving companies traditonally survive on ridiculous operating margins. Direct and indirect costs, labor, rolling stock and real estate holdings mandate that a constant revenue stream is a must. Couple this with an equation wherein the customer (the corporate account whose families are being relocated) drives the cost of the service, and you have a recipe for disaster. In order to maintain a profit margin and survive, the moving company must attempt to look internally and lower costs. What suffers? Everything. Lowered costs affect the ability to hire and keep good labor ( experienced, quality movers), maintain and purchase equipment and supplies, and create a company culture that is upbeat and not constantly under siege and "in the bunkers".
The end result? Moving companies, and the household goods industry will only regain it's niche at the top of the service sector called relocation after the scarcity of quality movers becomes endemic, and corporate families constantly decry the lack of professionalism and caring by their movers. The spotlight will once again shine on the lowly mover, and all of those currently in the mix will realise you can't have a good relocation without good.........movers!