Inflation and the Moving Industry

Since March of 2021, costs for moving have grown by an average of 11.84%. Everything from gas prices, the cost of moving supplies, labor, storage units, and truck rentals is up. As inflation persists, here are the costs that are driving up your moving costs:

Rising fuel prices and transportation costs

Fuel prices have a direct and immediate impact on your moving costs. Every truck, every mile, and every move depends on fuel. This makes price fluctuations a major concern. When gas and diesel prices rise, transportation costs quickly eat into profits. To manage rising fuel costs, consider these strategies:

Higher labor costs and wage increases

Inflation increases the cost of living, leading moving company employees to demand higher wages and better benefits to keep up. For moving companies, this means adjusting salaries to stay competitive in a labor market where workers have more options. Without offering fair pay, businesses risk losing skilled staff to competitors who provide better compensation packages.

These increased labor costs are passed on to customers, pushing the cost of truck rentals and additional services up.

Increased equipment, truck rentals, and maintenance costs

The costs of truck rentals, vehicle purchases, and maintenance are also examples of the impact of inflation on moving costs. Truck rental rates have risen due to increased demand and higher operating expenses for rental companies, such as fuel and insurance. The cost of purchasing vehicles has also soared, driven by rising production costs and supply chain disruptions. Even maintenance expenses have increased, with parts and labor becoming more expensive.

The effects don’t stop with vehicles. Packing supplies like boxes, tape, and padding have increased prices due to higher raw material and transportation costs. Equipment such as dollies, straps, and storage solutions is also more expensive.

Moving insurance and claims

Inflation increases the cost of replacing or repairing lost or damaged goods, which drives up the value of insurance claims. For you, this means higher payouts on claims, especially for valuable items like electronics, furniture, and specialty items. Insurance providers adjust their premiums to cover these rising costs, leaving moving businesses with increased expenses for liability and cargo insurance.

How to Save Money on Moving Costs to Offset Inflation Price Increases

Declutter and purge your belongings before you move.

Have a garage sale to sell items you no longer want or need. Additionally, after the garage sale, donate any items that are remaining. The fewer items you have to transport to your new home, the lower the moving costs can be. Selling items you no longer want is a great way to reduce your moving load and make a little extra money.

Avoid moving in the summer peak season.

When demand is lower for moving companies, you can receive better rates when you move. It also gives you flexibility for your moving date and schedule changes. Both of which are uncommon during the busy summer season.

Your moving day affects the cost of your move.

Most people don’t know that booking a moving date is comparable to booking an airplane ticket. Flying on the weekend can cost more than flying in the middle of the week. The same is true for moving. If you are flexible with your moving date, it can save you money. Moving during a less desirable date, in the middle of the week or mid-month, can cost less.

Try packing yourself.

You can buy your packing supplies in bulk and check your local grocery stores or liquor stores for free cardboard boxes.

Get multiple moving estimates.

Research reputable moving companies online and get a least three moving estimates. Additionally, thoroughly vet the moving company you choose to perform your move.