In times of economic hardship it can be difficult for an individual to keep his or her head above water. It can be even harder for businesses since they can’t succeed if individuals and other businesses don’t have money to spend on their services. However, there are some businesses—like the self storage industry—that are not just doing well; they are expanding.
The self storage industry in the United Kingdom is one of the larger ones in the world (there are approximately 350 that belong to the Self Storage Association United Kingdom. Earlier this month GSR Self Storage opened a pair of new facilities, one for East London and another for Essex.
Businesses within the UK are not only expanding, but they are seeing a tidy profit as well. One of the larger self storage providers in the country, Big Yellow Self Storage, recently announced that they have seen higher earings of late courtesy of increased demand in London.
"In this kind of suboptimal environment...we can deliver 3-4 percent occupancy growth and double-digit, perhaps 15-20 pct, earnings growth."
Sales increased by seven percent to 32 million pounds in the first half of the year accounting for a profit of 11.6 million pounds, an increase of 20 percent. The company says that the London area and the south east part of the country are doing well, but acknowledged that other areas often take much longer to see an improvement in demand.
"Within the UK, London and the South East economy is behaving better than certain other regional parts of the country, which are more dependent on public spending," Chief Executive James Gibson told Reuters.
Those areas have not been hit as bad as in previous years because the typical third quarter decline has been atypical this year.
"The period since Oct. 1 is historically our weakest quarter as students move out and the like, but this year, seven weeks into the quarter we are down 15,000 square feet, which compares to a 42,000 sq ft decline in 2010," Gibson said.
The United Kingdom is not the only country that has witnessed success in the self storage industry. Stor-Age, the largest self storage provider in South Africa, recently began construction on a new facility in the city of Centurion.
Just like many self storage facilities in the United States, they have secured a prime location for it on the corner of a couple main roads near the highway. When it is completed it will have over 700 self storage units, and will give the company close to 20 facilities in South Africa.
Sources Used:
“Big Yellow sees higher earnings on London demand.” Reuters; 22 November 2011.
“Self Storage In East London & Essex Opens.” Build.co.uk; 14 November 2011.
“Stor-Age Develops New Self Storage Facility in Centurion, South Africa.” Inside Self Storage; 08 November 2011.
Size of the Industry; Self Storage Association United Kingdom.