Self-storage and moving services — fixed storage, mobile storage, air-conditioned and non-climate controlled mobile services and rentals for DIY trucks — will reach a revenue of $71 billion by 2020. Advances will be driven by greater national mobility as people and businesses start to relocate at higher rates after the recession and slow recovery. There will also be growth due to the lack of storage space in many Australian homes.
Revenues for these services, one could suppose, vary significantly according to region , state and municipality. Local factors such as population size , density, age distribution, mobility, homeowner’s rate and growth trends mainly affect regional markets.
Self-storage and moving services locations
Self-storage and moving services should be located near their prospective customers. Most customers tend to rent storage facilities or rent a truck from a few miles away. Comfort is critical for storage as consumers want easy access to their items. It is also important for truck rentals as most people want to cut their miles. As a result , companies try to easily access their premises from large potential pools of customers, ideally near a college campus or military base, or a few kilometres from a relatively dense urban area.
Largest Markets Subregions
In 2015, the two most popular removalist and storage sub-regions were also the two largest self-service and mobile markets, the South Queensland and Gold Coast subregions. The West South Central was the third largest subregion, mainly due to the higher mobility rate compared to the other regions in the South and the West. With denser populations and numerous populous urban areas, the middle between Queensland and New South Wales subregion often outperforms the most densely populated South East and Central sub-region.
Factors That Drive Demand
However, other factors can significantly affect revenues even in areas of similar size. Mobility, homeownership and economic wealth must be taken into account. For example, the subregions of East North Central, West North Central and East South Central have the greatest levels of ownership above the 64 percent national average. These subregions however have less than average self-storage and moving services expenditures. The main reason for this trend is the lower population density and the fact that homeowners are less mobile than renters. The economic wealth of an area shows the potential storage and movement of the market, as it generally supports higher levels of new business development and construction and the capacity to offer higher value storage and moving services.