Self storage is one of the fastest growing industries in the United States. In comparison to nations like the United Kingdom for example, America has an inordinately high number of self storage facilities located throughout its 50 states. The revenue generated from this industry is well in excess of $20 billion and growing year after year. As is the case with anything that is gaining in popularity, there are a host of myths associated with self storage. Here are a few of the most prevalent with the truth about each statement revealed.
Myth: Self Storage Is Controlled By A Handful Of Companies
Proponents of this myth claim that there are a handful of giant corporations who run the vast majority of the self storage industry. While it is true that certain companies rule the roost and generate far greater profits than their rivals, there is still relatively healthy competition in this industry. The 5 biggest self storage companies in the United States control 10% of the storage units and space. While this is impressive, it hardly constitutes domination. In fact, the other 90% is in the hands of an incredible 30,000 different companies.
Myth: There Is Plenty Of Room For Expansion
The United States is a vast nation with almost limitless potential rental space. At present, there is more than 2 billion square feet of rental space used in the self storage industry. This seems impressive until we realize that the area of the entire United States is just over 103 trillion square feet (just over 9.6 million square kilometers). However, while there is plenty of space available, there may not be much business for any new organization that sets up in America. This is because urban facilities might have to compete with up to 20 other organizations. Even in rural areas, expect at least 5 rival companies if you are setting up a new self storage business.
Myth: Self Storage Is Easy
On the face of it, self storage seems like a walk in the park. After all, you are just putting things in a trailer and locking it right? Wrong. There is a reason people pay experts to keep their possessions safe. A self storage company has to have a high level of security to prevent theft or else be prepared to face the consequences via a compensation claim. All manner of objects are placed in self storage facilities. Different items react in a number of ways to conditions such as heat and humidity. Electronic equipment, art and clothes cannot be treated the same because they have different breaking points so to speak. A self storage company that cannot understand this will not last long in the industry.
These are three of the most commonly espoused myths relating to the self storage industry. Self storage organizations cannot afford to treat all items equally. New businesses need to know that although there is plenty of storage space available to start their company, they will be up against a large number of rivals and may not survive the torrid first few months. They say that the majority of new restaurants close within a short time of opening, the same can be said for self storage businesses.