Growth Challenges and Opportunities in the Removals Industry
The removals industry is both a barometer and a driver of economic activity. When people move homes or offices, they invest in new communities, take up new jobs and reshape local economies. In 2025 the sector sits at a crossroads: demand is softening, costs are rising and consumer expectations are evolving. Yet companies that adapt to these headwinds can unlock fresh opportunities.
A slump driven by housing and cost-of-living crises
Removalists generally thrive when housing markets are buoyant and people feel confident about moving. Today’s market is muted. The 2024-25 financial year was the quietest for the moving industry in two decades. Demand is down by 22% compared with pre-pandemic levels, and Google searches for removalists have hit record lows. The primary culprit is affordability: 78 % of movers surveyed said affordable housing is their top consideration when choosing a new location. With median house prices and rents soaring, many households simply postpone moving.
Household budgets also vary dramatically by city. A 2025 cost-of-living comparison shows a couple’s monthly expenses average A$6,000 in Sydney, roughly A$4,500 in Melbourne, A$4,450 in Brisbane and just A$3,900 in Adelaide. Public transport costs in Brisbane are about $30 per month, much lower than in Sydney or Melbourne. In Melbourne, rent can consume 51% of a couple’s monthly income compared with a national average of 35–40%. These disparities explain why net migration flows favour smaller cities and regional areas.
Labour shortages and the sustainability imperative
While customer demand is cooling, labour shortages are heating up. Global data show that three-quarters of employers struggle to fill job vacancies. In Australia, 78 % of employers report labour shortages. Forecasts suggest a global talent shortfall of 85 million workers by 2030. For removalists, recruiting and retaining skilled packers and drivers becomes more difficult just as clients expect faster, more professional service. Investing in training, flexible work arrangements and technology can help firms attract younger talent and upskill existing staff.
At the same time, sustainability is no longer optional. The moving industry’s carbon footprint – from diesel trucks to single-use packing materials – is attracting scrutiny. A 2024 report on green moving practices highlights initiatives like using recyclable or biodegradable packing materials, choosing fuel-efficient or electric vehicles and adopting sustainable equipment. Partnerships between removal firms and recycling organisations can significantly reduce waste. Some companies are even offsetting emissions or developing carbon-neutral moving packages. Early adopters will gain a competitive edge as environmentally conscious consumers look for greener options.
Evolving business models and technology adoption
Digital transformation is reshaping how removalists quote, schedule and execute moves. Online booking platforms and virtual surveys reduce friction for customers while cutting administrative costs. AI-driven route optimisation can lower fuel consumption and travel time. Cloud-based collaboration tools keep clients, drivers and coordinators aligned in real time. The challenge is scale: large national players can invest heavily in technology, while smaller operators must choose cost-effective solutions.
Opportunities also lie in diversification. The slump in residential moves has prompted some firms to expand into commercial or specialist services. Companies offering interstate routes – such as Sydney to Melbourne removalists – can tap into corporate relocation and logistics for the resources sector. Others are focusing on niche segments like pet transport, piano moving or international shipping. Storage and packing services provide recurring revenue streams during periods of low moving activity.
Leadership strategies: resilience and customer focus
In this environment, business leaders must balance cost control with investment in people and technology. Transparent pricing, flexible packages and clear communication build trust with cautious customers. Developing long-term relationships – for example, offering loyalty discounts for repeat clients – can smooth revenue volatility. Companies should also monitor emerging demographic trends. The Moving index shows that regional Western Australia, the ACT and South East South Australia have more inbound than outbound movers. Targeting marketing or establishing depots in these growth regions can unlock new markets.
Employee well-being is equally vital. Labour shortages intensify workloads; burnout undermines service quality. Providing ongoing training, mental-health support and opportunities for advancement can improve retention. A diverse workforce also brings different perspectives and problem-solving approaches to complex moving projects.
A cautiously optimistic outlook
Despite current headwinds, the removals industry has weathered downturns before. Population growth is still strong in many capitals, and lifestyle-driven moves are not going away. As economic conditions stabilise and housing supply improves, pent-up demand may return. By positioning themselves now – embracing sustainability, investing in staff, diversifying services and adopting technology – removalists can turn challenges into opportunities. Those that do will be better placed to serve customers, whether they’re relocating across town or engaging removalists in Sydney for a cross-country move.
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