People will always have “stuff,” and that means they are always going to be looking for places to stuff their stuff. Whether they are moving across the country or simply looking to make space in their home while conducting renovations, starting a mobile self storage business is a recession-proof opportunity that can generate considerable returns on your investment.
A Mobile Society
America is a mobile society, and each year people move around for any number of reasons. They may take a new job, they may want to be closer to family, or after enduring years of long winters and ice storms, they may opt for sunnier climates down south. Whatever their reasons, the U.S. Census Bureau estimated in 2014 that approximately 12% of Americans relocated in 2011. The research indicated that approximately 23 million Americans moved within the same county. A further 6.65 million moved to a different county in the same state, and 1.45 million moved to another state. Overall, this same study indicated that roughly 35% of Americans had moved at least once in the previous five years.
This is great news from the standpoint of a mobile self storage business operator. It means that there is a solid market to tap into. It is a market that is increasingly looking to streamline every aspect of the moving process. Mobile self storage operators are meeting the needs of the evolving moving market by developing containers and transportation networks that can move everything from 7-foot containers to 16-foot containers or larger. Thus whether the customer is a recent college graduate, a family of four, or a retired couple, the industry has moving solutions suitable for every need and every budget.
Nationwide, self storage business generates $33 billion a year in revenue, and this number is growing as the country becomes increasingly mobile. Moreover, people are searching out moving solutions that make these moves more convenient and less expensive. Mobile storage providers respond to consumer needs by combining the convenience of self storage with the ability to move the possessions across the county without consumers having to load everything into a truck and drive it down the road. This saves consumers time, money, and the frustrations and dangers that can come with long-haul moves.
Statistically, there are 54,000 self-storage facilities in the United States. That is one facility for every 5,900 people. Looking at those who move as outlined in the US Census Bureau data, roughly 39 million Americans can be expected to move in the year ahead. To maintain the ratio of existing facilities to the potential need of people relocating, there is room for growth of approximately 1,200 new facilities. This represents a considerable business opportunity for businesses seeking to enter the market, or for businesses seeking to expand their operations.
The Bottom Line
As with any industry, starting a self storage business requires an investment of capital to get started. Land needs to be purchased, facilities constructed, containers selected, and advertising initiated. It’s a lot of work, but right now interest rates are low and lenders and investors are eager to invest in sectors of the economy that are solid and primed for growth. With the economy picking up and self storage generating solid returns in all cycles of the economy, now is the right time to make the move and and develop your mobile self storage business so that you can take advantage of the industry’s strong growth projections. You might even say that it’s a penny wise and pound profitable investment that is guaranteed to pay off down the road.