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I am seeking an analysis of the organisation ''Brookfield Global Relocation Services'' or BGRS for short. Please provide information on their major competitors, BGRS' market share, and any strategies they have for increasing their market share.
Hello and thanks for asking Wonder to provide an analysis of the organisation ''Brookfield Global Relocation Services'' (BGRS). In short, this industry is growing due to technology advancements and the need for global deployment of talent, but the market is very competitive. Below you will find a deeper review of my findings.
METHODOLOGY
I started my search by looking for industry reports and studies that would provide information on the overall market. I then zeroed in on BGRS, thoroughly exploring their website (news, awards, new products, etc.) and searching for articles from trusted sources. I also relied heavily on data from Owler and Hoover's to find information on BGRS competitors (size, revenue, etc.), most of whom are privately-held companies.
OVERALL MARKET
According to research from Technavio, the global relocation services market is expected to grow at a CAGR of 3.5% over the next five years, attributed to new technologies in the industry. Global market spend in 2016 was $67.5 billion and analysts estimate it will be over $80 billion by 2021.
The market is highly fragmented with over 730 businesses in just the U.S. The five largest providers (including BGRS and the top four, below) make up roughly 20 percent of the industry’s U.S. market share (Company revenue of approximately $3m/$15m).
Many global relocation service organizations are harnessing technology and advanced platforms for easy tracking and management to make mobility a strategic advantage. And as global companies have an increasing need to appropriately deploy talent around the world, the demand for their services is expected to increase.
BGRS is a subsidiary of Brookfield Asset Management and has more than 1,500 employees in 16 regional offices worldwide. BGRS also maintains a network of 1,900 trusted suppliers in 140 countries. BGRS currently manages over 60,000 relocations annually.
BGRS MARKET SHARE
While no pre-existing statistics for market share exists, I was able to triangulate an estimate based on available information:
- BGRS annual revenue is $125 million, according to Owler (Hoover's reports $117 million; in the same ballpark).
- Overall, the global relocation services market is $67 billion, according to the report by Techhavio.
- The U.S. employee relocation services market is $15 billion (from 2015; the latest available report), according to IBIS World.
Therefore, since market share is equal to sales as a percentage of an industry's total revenue, I came up with these figures for BGRS:
- Global Market Share: .18% ($125m/$67b=.00186)
- U.S. Market Share: .83% ($125m/$15b=.00833)
Another, perhaps more helpful comparison, is to look at where BGRS stacks up compared to specific competitors. We'll review competitors in the next section.
MAJOR COMPETITORS
The industry is seeing fierce competition, and relocation services organizations are beginning to engage with technology service providers and supplementing their value-added services to differentiate themselves from competitors.
I compiled a list of competitors based on three sources: primary suppliers in the industry identified by Technavio, BGRS competitors according to Owler, and companies listed on the HRO Today’s "Baker’s Dozen" rankings (chosen based upon their breadth of features, deal sizes, and quality):
--Graebel Companies Inc.: $1.5 billion Aurora, CO-based company that provides employee relocation and workplace services.
--SIRVA: $687.5 million Oak Terrace, IL-based company that provides relocation and moving solutions.
--Cartus: $539 million Danbury, CT company provides global relocation services including mobility, outsourcing, consulting, and language and intercultural training needs.
--NEI Global Relocation: $75 million Omaha, Nebraska-based private company that offers full service relocation and international assignment management.
--Weichert Workforce Mobility, Inc.: $73 million Morris Plains, NJ-based private company that provides human resources consulting, relocation and assignment management services.
--Santa Fe Relocation Services: $70 million London-based company that provider of corporate, individual and commercial relocation services.
--Global Mobility Solutions (GMS): $41.5 million Scottsdale, AZ-based company that provides relocation support services to the executive recruiting industry, real estate brokers and agents government clients.
--NuCompass Mobility Services, Inc.: $17 million Pleasonton, CA-based private company provides U.S. domestic and global mobility services with industry-leading proprietary technology.
--Cornerstone Relocation Group: $15 million Basking Ridge, NJ-based private company that provides global, full service comprehensive services to address the workforce mobility needs of corporations worldwide.
--XONEX: $10 million New Castle, DE-based private company provides 3rd party relocation services to corporate clients.
--Urban Bound: $5.3 million Chicago, IL-based company that UrbanBound develops a web-based relocation management software that enables employees to manage their entire relocation process.
--Lexicon Relocation, LLC: $4 million Jacksonville, FL-based company that provides global mobility solutions and customized relocation and assignment management services worldwide.
At $125 million, BGRS would be number four on this list, only behind Cartus, SIRVA and Graebel.
BGRS STRATEGIES FOR INCREASING MARKET SHARE
BGRS is a privately-held company so this information is more difficult to find. However, I scoured news releases, articles, and interviews to find as much as possible about the company's plans to grow.
- Harnessing Technology - Based on my research, I found that buyers are looking for tech-savvy service providers who use cutting-edge technologies that help make the relocation process as seamless as possible. BGRS is definitely focusing on technology to address the needs of their customers. According to John Gennaro, Vice President, Global Operational Support, "many of our largest clients started to look for enhanced technology solutions to facilitate these moves". And according to their website, "BGRS develops technology tools designed specifically to support our diverse client portfolio and their relocating employees". For example, to address the increasing preference for self-service technology, BGRS released a "moveXpert™ tool". BGRS’s lump sum online tool, www.moveXpert.com, provides cost-effective support, tools, supplier choices, and flexibility to those receiving lump sum benefits, while maintaining total control of their relocation.
Another example of technology to grow business is a new tool called ReloAccess®. It was created for mobility managers and employees who are relocated in the corporate sector. ReloAccess is BGRS’s advanced technology platform.
- Partnering with clients - Although I don't have specifics on exactly what this entails, I thought it was important to include. I found the information in a news release and the verbiage speaks to BGRS's customer focus including "ongoing commitment to breaking new ground in the way we partner with our clients so that they can contribute strategically to the success of their organizations". They go on to explain that they are "reinforcing a global view of our clients’ opportunities and challenges" and driving innovation and responsiveness to clients on a global level.
- End to end solutions for clients - BGRS is striving to become a "seamless extension" of their clients’ teams. They can provide a full portfolio of services including talent mobility program administration, financial management, mobility supply chain management, program design and advisory services.
- Maximize Millennials - Millennials continue to saturate the work place, and will soon become the predominant customer for relocation. A large majority of Millennials expect a global relocation as an ultimate development opportunity, but many companies do not have plans or programs in place to address this large part of their future talent strategy.
- BGRS is aligning global mobility solutions to an organization's talent agenda. By continuing to stress this link, BGRS is helping customers achieve business outcomes around talent, versus just providing relocation services.
- Drive Innovation - CEO Traci Morris discussed the the evolution of business and the need to "re-imagine" mobility, and that, along with increased demand drove BGRS to "shift perspective and reset the company’s mission and vision for the future, to partner with and understand our clients and customers better, and to drive innovation throughout the organization". Morris's agenda includes accelerating the pace of change, the pace of innovation, and being clear on how they need to position themselves to best meet the changing needs of clients.
- Collaboration with Suppliers - BGRS will continue to create new platforms for collaborating with supplier partners. The company is working on unique technology solutions for suppliers to develop added functionality.
- Branding. In December 2016, Brookfield Global Relocation Services changed its name to BGRS to "strengthen brand recognition for the company’s value and expertise in talent mobility in addition to relocation services". Twitter feed read: "We’ve condensed our name to expand our brand – read more in #BGRSNews".
(BGRS Client Portfolio will be researched separately, per the notes from Wonder: "Client portfolio" is under a second question that will be researched separately".)
BONUS INFORMATION
(on Move Guides alliance with PwC)
Move Guides, a $379 million five year-old company based in London provides a talent mobility software in the cloud to help companies manage the relocation of their employees. They entered into an alliance with PricewaterhouseCoopers LLP (PwC) to "integrate our Talent Mobility Cloud and services with PwC’s global mobility tax, immigration, consulting and compliance offerings". This relationship provides a unique global mobility offering, providing "immigration, tax, consulting and relocation services underpinned by a single cloud based technology for the first time", according to Move Guides CEO, Brynne Herbert.
The PwC alliance will give customers instant access to the consulting firm’s tools. Initial services will be offered on a referral basis, but eventually the plan is to integrate them into the Move Guides dashboard, according to Herbert. Move Guides expects a 300% growth in revenue this year.
In conclusion, the global relocation services market is in a growth mode, but the landscape is crowded with providers. BGRS is one of the larger players, and has harnessed technology to offer their customers more convenience and cost savings.
Thanks again for asking Wonder! Best of luck with your presentation.