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Thursday, Mar 28, 2024

Moving Companies Try to Truck Through Tough Times

San Fernando Valley moving and storage companies have had a tough haul the past few years, and some say the journey isn’t over. But a few companies say business is running a little smoother now, because they hunkered down and built leaner and stronger operations. Many area moving businesses were forced to shut down when the housing market collapsed and customers stopped calling for help. Some still are struggling to make it. Others have learned some important lessons. “For the last few years, the industry has shrunk,” said Mark Frydman, president of Box Brothers, a Woodland Hills-based company that offers a variety of shipping, packing and other moving-related services. “It affected a lot of people. When people are moving under adverse conditions they don’t think they can do anything but do it themselves. We’ve had to adjust, as well.” To drum up more business, Box Brothers expanded its consumer product selection and branched out its service offerings beyond small shipping, Frydman said. The company also grew its auction services niche, he said. Box Brothers now offers a full-range of services, including logistics, packing, and shipping services for auctioneers and purchasers. It has been involved in highly visible auctions, including those for Ozzy Osbourne and the hit television show “Lost.” Ram Katalan, co-founder and CEO of Chatsworth-based NorthStar Moving Corp., said the company has made a lot of efficiencies in the wake of the housing crisis, ranging from tighter inventory controls to improving the scheduling of moving trucks. “We don’t just rely on the market,” Katalan said. He added: “If we did today what we did a few years ago, we would have been long out of business.” In a major metropolitan area such as Los Angeles, successful moving companies run a highly diversified business, said Steve Weitekamp, president of the California Moving and Storage Association. For example, they handle specialty needs such as office and industrial storage, offer high-end packing services and have operations devoted to serve customers’ planning, logistics and installation needs, he said. Those in the moving industry say it’s important to have a robust online advertising and marketing campaign and an informational, easy-to-navigate Web site to drive business. A company’s reputation in social media channels and at online rating sites, such as Yelp.com, also can have a tremendous impact on business, Katalan said. Yelpers have given the company a four-and-a-half star rating and have written more than 300 reviews. That’s helped to attract new customers, he said. In this difficult market, rating sites also have helped feed illicit moving businesses and hurt some legitimate ones, Weitekamp said. The boards often are a breeding ground for scam companies, which tout services at rock-bottom prices and lure consumers that are desperate for a deal, he said. Even without that added challenge, Weitekamp said, “there aren’t a lot of small operators that aren’t struggling today.” Those in the moving and storage industry are cautiously optimistic about the future, he said. “We’re seeing some improvement, and a lot of people felt the second quarter (this year) was maybe the best they’ve seen in the last two years,” Weitekamp said. “There’s just concern and apprehension that this won’t continue.” Frydman of Box Brothers said for the first time in three years the company has seen positive market demand for moving products and services. The company’s customer count has increased and there are more inquiries, he said. “We’re hearing that people are moving because they got a job,” Frydman said, though he noted, “it’s not happening as widespread as we would like it.” Katalan said the first few months of the year have been better for NorthStar than the first few months of 2010, and business has boomed for a few weeks this summer. Still, he said, the industry has some “pretty steep canyons to get out of.” “We’re still far, far, far away from weathering the storm,” Katalan said. There’s still an overwhelming feeling of pain in the market, he said.

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