This Corporate Relocation Research Study, conducted in partnership with Corporate Relocation Today (CRT) and northAmerican® Van Lines, provides a comprehensive analysis of the current state and future trends in corporate relocation and mobility within the manufacturing industry. The study surveyed 222 business executives actively involved in talent acquisition, relocation, and mobility efforts, offering a detailed look at how companies manage their mobility programs, the types of relocations, policies adopted, and the challenges they face.
Mobility Management in Manufacturing
Manufacturing companies are increasingly recognizing the importance of strategic mobility management. The study reveals that a company's size and number of locations significantly influence its recruiting and mobility strategies. Larger companies with more locations are more likely to use Relocation Management Companies (RMCs) to handle all employee relocations, while smaller companies tend to manage relocations internally. Nearly 39% of manufacturing companies utilize an RMC in some capacity to assist in managing their employee moves.
Common Relocation Types and Policies
The research identifies five primary categories of relocations managed by manufacturing companies: Domestic, International, Short Term, Cross Border, and Rotational. A significant majority of companies provide comprehensive relocation programs, with reimbursement policies coming in second and lump-sum policies ranking last. Surprisingly, despite the potential drawbacks, a notable 28.8% of companies have adopted all three relocation policies, catering to various job levels and seniority.
Relocation Goals and Challenges
The top priorities for manufacturing companies regarding relocation goals are Employee Satisfaction and Improving Production or Quality of Product or Service. Ease of Use ranks third in importance. However, companies face significant challenges, with Employee and/or Family Reluctance to Relocate and Availability of Temporary Housing being the most prominent. Other notable challenges include Home Sale or Purchase, Shipping Delays, and Lack of Budget Control.
Vendor Usage and Support
The study also sheds light on the number of vendors used by companies to support their relocation efforts. Approximately 60.3% of executives confirmed that they rely on two or more moving vendors for their relocation needs, indicating a trend towards using multiple vendors to increase flexibility and access to preferred moving dates.
Anticipated Relocation Volumes for 2024
Looking ahead to 2024, 49.5% of executives estimate their relocation volume will remain the same as in 2023, with 36.5% anticipating an increase in relocations. This optimism is in line with the previous study conducted in the fall of 2022, suggesting a stable or growing demand for corporate relocation services in the manufacturing industry.
In conclusion, the Corporate Relocation Research Study for the Manufacturing Industry provides valuable insights for business executives in the manufacturing industry to benchmark their relocation and mobility programs against others in the sector. It highlights the strategic importance of mobility management, the adoption of diverse relocation policies, the focus on employee satisfaction, and the challenges that need to be addressed for successful corporate relocation efforts.