We’ve all noticed it: storage companies are springing up all across the UK. You might not be surprised to find multiple storage companies operating in big cities. If you search for self storage London will reveal plenty of results but you can expect to find two or three storage companies jostling for position on the perimeter of even small towns. New facilities and companies regularly with byStored being one of the latest examples.
There are few reasons for this, and looking into them today could help you decide if you need to use self storage yourself or even if it’s an industry you want to work or invest in.
Economics
With the consequences of the 2008-09 banking crisis still rumbling on, and an ill-defined Brexit making the future look uncertain and threatening, the economic outlook is not good. Uncertainty is not a good climate to do business in and it’s telling with slow, or non-existent growth in recent quarters.
That’s bad news for most people, but there are some businesses that thrive in recessions, crashes and other financial crises. Self storage is one of those industries that far from being depressed by depressions actually expands when others are wilting.
Economic slowdowns inspire many families and businesses to downsize, creating a demand for more storage space. People want to keep collections and furniture they can’t accommodate in their new, smaller homes safe until they can either reclaim and display it again or permanently dispose of it by selling it on or recycling.
Renting and Buying
In tighter economic times, fewer people buy houses: banks are less willing to lend and people less able save the large sum of money needed for a deposit.
A bigger community of renters means more people moving house more regularly. One of the biggest reasons for people to use self storage facilities is for help when they move house, according to a recent industry poll. This community of regularly moving renters creates a fertile market for short term storage facilities, especially in big cities, where the higher price of properties means the storage company runs more risk.
Between short term customers, and longer term contracts with downsizers storing excess possessions for months at time and small businesses taking advantage of the cheap rent and short notice periods to use storage company for flexible warehousing space, it’s no surprise that more than 75% of the ever growing storage capacity of the UK is in use at any one time.