Investing in or starting a business is an incredibly tough decision to make. From choosing what you are going to do to laying the groundwork and getting the business of the ground the time commitment is intense to say the least—as is the financial one. So you have to be careful what you choose. Just because the self storage industry has been a good investment does that necessarily mean that it will continue to be one?
The answer to that question is simple—not necessarily. Does that mean it will not continue to be successful? Also not necessarily. However, if you believe what a recent study forecast it may be a pretty safe bet to jump in to the self storage industry now.
According to estimates from the Self Storage Association the industry within the United States generated over $24 billion in revenue last year. Not bad, right? If you believe what a market research report from IBISWorld says that number is only going to get larger in the years to come—much larger.
Over the next few years the report sees the revenue generated by the self storage industry to increase to $25.6 billion in 2014; $26.3 in ‘15’ $27.5 in ’16; $28.8 billion in ’17; $29.9 in ’18; and $31 billion in ’19.
“The countercyclical nature of the self-storage industry helped it weather the recession better than most industries,” IBISWorld analyst Will McKitterick told The SpareFoot Storage Beat. “Now that the economic recovery is in full swing, revenue growth over the next five years is expected to be even more robust.”
McKitterck also sees businesses playing a significant role in the growth:
“Businesses, especially small online retailers, will use more self-storage and mini-warehouse facilities to store business equipment, displays and inventories,” McKitterick said. “Self-storage units are significantly less expensive than renting retail, office or warehouse space, and they do not require long-term leases.”
So does that mean it is time for investors to jump in to the industry? That depends on how much weight potential investors want to give the report. In the meantime we are likely going to continue seeing growth in the industry anyway—like in Wilmington, Vermont.
Joseph Montano presented his case to the Development Review Board in Wilmington Monday night for a proposed self storage facility, Green Mountain Self Storage. If approved the new facility will include two buildings with 72 units in each.
Should the industry progress like the IBISWorld report thinks there is a good chance that Montano is going to be a very happy man.
“Forecast: Self-storage revenue to reach $30B in 2019.” SpareFoot Storage Beat; 31 March 2014.
“Self-storage complex proposed.” Deerfield Valley News; 14 April 2014.