Moving Words – Planning for 2024

Timothy Brady

“In preparing for battle I have always found that plans are useless, but planning is indispensable.” – Dwight D. Eisenhower

With the inflationary economy in 2023 and the budget impasse that continues in Washington, putting together a business strategy for 2024 will be a challenge. Each hauling segment, region, and lane is going to have its own set of circumstances. To forecast moving industry shipping volumes in 2024, here’s a list of questions to which you need answers:

• What’s the current unemployment rate for the area?
• What portion of Gross National Product does the area contribute?
• Is the area in growth or decline?
• Any new industry to begin in 2024?
• Any plant closings in 2023?
• Any plant closings expected in 2024?
• Outbound shipment numbers for 2023?
• Inbound shipment numbers for 2023?
• What are the anticipated numbers in 2024?
• Check for the same information in areas and lanes adjacent to your current service area(s).           

You should start to see a picture of what you can expect in shipment volume in your sector as you move into 2024.

The next part of developing your 2024 forecast is what’s changing in how shippers conduct their business. Be aware of this before any negotiations with your corporate clients. Understanding your corporate clients’ business strategy for 2024 will help you determine the best route for their relocation needs.

• Are they moving towards more remote workers or consolidating their staff back into the office?
• Are they looking to set up shop closer to their customer base, to reduce the distance their products are transported to shrink fuel costs?
• Are they also looking to consolidate raw material sources and have them located closer to the manufacturing facility?
• What services will they need to facilitate their 2024 employee relocation plans?

Finally, you must look at what you did in ’23: how it increased, decreased, or stayed the same, and what the tendency has been throughout the year. This will help establish what 2024 will look like.

• Are your sales growing, “flat-lining” or declining?
• What seasonal or cyclical factors are typical for products or commodities you haul? Is it what it’s been historically, or is a new pattern developing?
• How’s your availability of moves affected by swings in general economic activity? (Increases in fuel costs can lead to a decrease in sales for your customer, thus causing a drop in loads for your company.)
• What are you doing to increase sales? (e.g., a marketing campaign to locate new customers)
• What are corporate accounts saying about whether the number of their employee moves is going to increase or decrease in 2024?
• What have they done in the past during similar economic conditions?      

Creating models of what could occur and a viable action plan for each one will help you weather financial storms. Prepare for the worst, have options laid out for improving conditions – and at the very least, you’ll keep it between the ditches for 2024.

“Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort.” – Paul J. Meyer