Turnover removal companies slows down

Statistics Netherlands (CBS) reports today that, during the second quarter of 2015, removal companies did not benefit from the recovery of the housing market. Although house sales grew by 19 percent relative to the same period last year, removal companies recorded a very modest turnover growth of less than 0.5 percent.

Over the last six quarters, turnover generated by removal companies had risen by an average of 4 percent a quarter. Withh 6 percent, turnover growth in the first quarter was even higher. Why there was hardly any turnover growth in the second quarter remains as yet unclear. Apart from house buyers, removal companies also provide services to tenants who move to another accommodation and business clients.

Removals require large amount of labour

Private removals and small and large project removals (within office buildings or from one building to another) are labour intensive activities. Because removals require a large workforce, staff-related costs tend to be relatively high, amounting to nearly 45 percent of total costs, as against 25 percent of total costs in the transport sector.

Storage and hiring of external staff account for nearly one-quarter of total costs of removal companies. Ten percent was spent on gas, rent, leasing and repair. In the Netherlands, 490 removal companies employ 5,100 people.