2013 GPA Summit Industry Trends Recap

Household Goods
Recruiting and Pricing

Current Situation and Challenges:

Staffing

  • Too few drivers, too many hours and aging workforce
  • New U.S. regulation for 2016 to impact number of daily driver hours allowed
  • Costs and delivery time impacted by laws in California with goal to reduce carbon monoxide emissions
  • Trucks older than 2007 prohibited in California; standards apply to engines built in 2010 and later; costs range from $10,000-$20,000 to rebuild
  • Turnover tends to be higher in the van line industry when market fluctuates
  • Top drivers won’t take lower priced jobs and take COD moves instead

Potential Recruiting Solutions:

  • Recruit veterans who have logistics knowledge
  • Husband-wife teams for driving and unpacking teamwork
  • Hire apprentices as helpers for drivers to gain experience for obtaining licenses
  • Incentives and bonuses
  • Recruit via social media

Shipment Sizes Are Declining

  • Smaller loads as the volume of renters increases
  • Some companies are reducing the size of overseas shipments
Potential "Small Load" Solutions:

  • Containerization for quicker delivery, shorter delivery windows
  • Shipped on a non-household goods carrier so no van driver
  • Good solution for smaller shipments and remote areas

International Shipping

  • International estimating is becoming more difficult with rising costs of customs
  • Opening boxes by customs agents is causing damage, increasing insurance claims and costs
  • Some transferees are unwilling to complete insurance forms, yet the driver won’t take the shipment unless the transferee is willing to take all risk
Potential International Shipping Solutions:
  • Watch customs by country to adjust estimates and total delivery time
  • Additional communications from the move coordinator in setting expectations with the transferee on insurance, claims and risks with international shipments 

Technology and Safety

  • New safety regulations from Federal Motor Carrier and Safety Administration (FMCSA) creating changes
  • Dispatch has to reduce driver’s hours, increasing delivery time
  • Electronic logging devices and cameras to monitor compliance
  • Non-compliance brings fines
  • Need to educate clients
  • Tougher onboarding process discourages new drivers

Potential HHG Technology and Safety Solutions:

  • Electronic inventories will support a faster billing process
  • Logging devices to track trucks 24/7 and accurate delivery time estimates

Inspections

Current Situation and Challenges:

  • Local inspectors have gone out of business
  • Radon becoming issue in Canada, but not enough inspection companies to manage volume
  • Tougher inspection time frames
  • Transferees learning about inspections and inspection companies spending time defending their reports or need to make a return to trip to the property
  • Over reporting and under reporting
  • Some companies too relaxed with repairs being completed by transferee
  • Problems with resale closing possible
  • Some companies decreasing their tolerance for risk
  • More clients are excluding properties from their programs 

Potential Inspection Solutions:

  • Increased inspector communication and consumer education
  • Stronger reporting tools for management insight

Mortgage

Current Situation & Challenges:

  • Much more difficult to get a loan; tighter rules to prove ability to repay
  • Three-day threshold for approvals and more closing delays
  • New generational shift; more mobile, have more debt with education loans and postponing having a family
  • Mortgage appraisals not always meeting the purchase price
  • Many buyers paying the difference between appraisal and purchase price, setting themselves up for loss in the future
  • Transferees who get outbid panic, and make poor decisions
  • More sellers are counteroffering; emotions run high

Potential Mortgage Solutions:

  • Realtors encouraging transferees to review the numbers, showing them comparables from the last six months
  • Understand how to talk with the various generations and how they respond best

Residential Real Estate and Rentals

Current Situation & Challenges:

  • National builders are buying existing subdivisions to develop; last time was 2008
  • Investors are buying properties, leasing them and pushing up prices
  • Large companies are buying many properties to rent; holding them until the market recovers
  • Rental fees are climbing, making it more affordable to buy than rent
  • Lack of rental supply pushing an increase in demand as more homeowners renting
  • Landlords are not accepting exclusion clauses due to supply/demand
  • In general, there is a shortage of rental properties, creating a landlord’s market
  • There are some unethical people who are advertising properties for rent for which they do not own.  They are misrepresenting themselves and properties, and taking advantage of the inexperienced renter, randomly collecting deposits on properties for which they have no legal right to lease

Potential Real Estate and Rental Solutions:

  • NEI can help by encouraging renters to have background information, financial statements, employment status, family information ready before looking at properties
  • To help protect renters from those trying to scam the market, we suggest that if the landlord is an individual, ask to see a mortgage statement and escrow account, along with a letter from past renters to confirm their deposits were returned

Temporary Housing

Current Situation & Challenges:

  • Challenge in making domestic properties more attractive
  • Group moves into remote locations on the increase
  • Focus on safety and security when leasing properties abroad

Potential Temporary Living Solutions:

  • Working to become more proactive with identifying potential accommodations
  • Partner with locals who can help to identify other solutions that may work in the new location
  • Ask the housing agency to provide pictures of the properties and the surrounding area as well as taking steps to secure the property.  Examples may include locks on all windows that are tied to a security system, video cameras, fencing around the perimeter of the property, guards for the neighborhood, etc. 

Destination Service Providers

Current Situation & Challenges:

  • Reduced or eliminating settling-in services
  • Many people don’t want to take the time to use the services
  • Need to determine how to work with more “do-it-yourself” programs and attitudes
  • Lump sum program means assignees won’t use the services if they have to pay for them
  • Potential problems after move-in

Potential DSP Solutions:

  • Need to determine how to create more “do-it-yourself” programs, especially including mobile apps and website resources
  • Focus more on setting clear expectations and options
Many of you expressed an interest in using a slide or two from our presentation showing how many connections transferees and assignees must make during the relocation process.  You can access that presentation by clicking here: Streamlining the Relocation Process   All other presentations are included below.

NEI 2014 Summit Dates Set

NEI Global Relocation has set the dates of October 13-14 for its next Global Partner Alliance to be held in Omaha, Nebraska at the Omaha Marriott on Regency Parkway.


NEI Hosts Global Partner Alliance Summit

NEI Global Relocation (NEI) hosted a day and a half of learning and sharing opportunities for our service partners and employees, covering a wide variety of topics, including a special presentation on global business ethics. The event attracted more than 130 global relocation service partners from 14 countries and was held at the Omaha Marriott, just minutes from our global headquarters.  

After a warm welcome from NEI President, Kate Dodge, Randy Wilson, NEI CEO, introduced the audience to NEI, our parent company, our history, our business philosophy and core values, and what sets NEI apart from other relocation management companies.  "I think what really sets NEI apart from others is our culture," Randy said.  "We truly try to live our values in everything we do and instill a collaborative culture that focuses on communication, consultation, cost control, customization, continuous improvement and corporate citizenship."

To see her presentation, please click here:  Getting to Know NEI Global Relocation

Following the initial presentation, Al Blumenberg, explained how to become a certified Global Partner Alliance member.  Al described the difference between NEI suppliers, members of the Global Partner Alliance and the ultimate Certified Global Partner and explained the process for acquiring each level.

To view his presentation, please click here:  NEI Global Partner Alliance Program

The presentation Complementing Competencies demonstrated how one of NEI's newer service partners, Jennipher Christensen from IPR Consulting, developed a genuine partnership with NEI.  International Services Manager, Mollie Ivancic, explained the ebb and flow of how the relationship developed and how they worked through the communication process to collaborate.   

Click here to view:  Complementing Competencies

The last session of the day and the first two sessions of the next day were roundtable discussions covering Best Practices and Trends by Industries, How to Streamline the Relocation Process for the Transferring Families, and NEI Gateway Supplier Portal.  Marti Briney introduced each topic with the following presentations:

Click here to view:  Industry Trends

Click here to view:  Streamlining the Relocation Process

Click here to view:  NEI Gateway Supplier Portal

The room was buzzing with ideas on each of these topics and everyone seemed to enjoy the opportunity to share their insights.  Jill Silvas commented, "There is truly a sense that we were not here just to keep our business relationship, but that you really value our input and opinions - very refreshing and rare from an RMC."  Another stated, "Thanks so much for having us and allowing us to share our thoughts, insight and opinions.  Nice to know our perspective is valued!"  Other comments echoed this sentiment, "This was a fantastic event and really made me feel like a true partner of NEI."

One of the highlights of the Summit was the panel discussion on Partnering to Create an Ethical Business Culture Across the Globe.  Kate Dodge introduced the Moderator, Beverly Kracher, Ph.D., Charles Dalluge, Executive Vice President of Leo A Daly Company, and Chris Kircher, Vice President of Corporate Affairs and President ConAgra Foods Foundation.  

NEI Global Ethics Panel Discussion

Closing the event was keynote speaker, Joyce Laymann, who gave her presentation on Mindset, Motivation and Change, sharing her experiences and offering excellent suggestions for converting negative mind chatter to positive results.

Click here to view:  Industry Trends

More photos of the event will be posted to the NEI Facebook site in the near future.



Omaha Marriott-Regency

NEI Global Relocation will return to the Omaha Marriott on Regency Parkway for our second annual Global Partner Alliance Summit this October 13-14.  Save the date!!!

Thank you to our 2013 sponsors!!!


Gold Sponsors


Cort

Dependable Auto Shippers


Silver Sponsors

Corporate Living

Fidelity Inspections





 

 

 


Bronze Sponsors

Ace Worldwide

Asian Tigers

AT Properties

Atlas Canada

Beltmann Relocation Group

Berry, Appleman and Leiden

BridgeStreet

Coppergate

Crye-Leike Realtors Inc

Cultural Awareness International

Harry James Realtors

Home Buyers Preferred

Interconex

JB Goodwin REALTORS

Long and Foster Companies

MBM Moving Systems, LLC

Planes Moving and Storage

Powell Relocation Group, Inc.

RAL

REA

S & M United - KMOV Radio

Wells Fargo Home Mortgage

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