e F E ATU RE FACING UP TO THE GIANTS O With the creation of huge business concerns such as SIRVA/Cartus, RMCs, and the movers who rely on their business, are facing an existential challenge. FIDI Focus editor Dominic Weaver finds out about their different responses and what the future might look like for the moving and relocation industry ver the past two decades, FIDI Affiliates have had their fair share of challenges. Traditional movers have faced the rise of the relocation industry and, with it, a seismic shift toward RMCs as customers. This is not to mention increasing pressure on margins, growing compliance requirements and other administrative burdens, and ever intensifying competition. During this time, movers have responded admirably, increasing efficiency and innovating positive solutions in their business. However, in recent months, they have been faced with a new kind of challenge: the arrival, through merger or acquisition, of a new breed of relocation giant. Deals, such as SIRVA/Cartus and Relo Groups acquisition of BGRS, are creating vertically integrated businesses whose scope includes not only the relocation management, but the services themselves, including moving. If completed successfully, the SIRVA/Cartus deal has created not only the worlds largest and most powerful RMC, but also one that is far better placed to give its customers what they need, according to SIRVA President, Americas, Drew Coolidge. He says: Given the pressures of continued cost reduction and raising the bar on employee relocation experiences, I think market consolidation WW W. F I D I. O R G FF295 FebMar20 pp32-41 RMCs.indd 33 will continue as a means to thrive profitably. Our clients are asking for human support globally, more flexibility on policy design and acceleration of our investments in technology innovation. With this in mind, we think the combination of SIRVA and Cartus represents a very compelling value proposition. The key for SIRVA, he adds, will be delivering the correct mix of tech and human support. Self-service when someone wants it, and a live subject-matter expert when they need it. The challenge lies in the proper balance as all our clients have unique needs, he says. The flurry of investment in the relocation sector has echoes of when banks started buying up moving businesses, two decades ago now, in the hope of rapid return on their investment a return that often didnt come. However, with RMC businesses the targets this time, the change feels more far-reaching; it is also posing some important existential questions to movers, as some of their major customers are assimilated into much larger organisations. FIDI Secretary General Jesse van Sas says that in markets such as Canada, intermediary RMCs can make up almost three-quarters of the corporate movers trade and, accordingly, traditional companies may be having sleepless nights about the implications of these changes. Many are now wondering if, with the big DREW COOLIDGE, SIRVA PRESIDENT, AMERICAS I think market consolidation will continue as a means to thrive profitably 33 21/01/2020 15:37