Over the past five years, the Self-Storage Services industry has been supported by steady demand from Australian consumers, especially those relocating for short-term purposes such as employment or study. According to IBISWorld industry analyst Ryan Lin, “The industry has also grown steadily thanks to the lack of feasible substitutes for self-storage services, with consumers turning to industry operators to store larger items such as furniture or automobiles for later use.” As a result, over the five years through 2013-14, the Self-Storage Services industry is expected to grow at an annualised 1.8%. Profitability for the industry has also grown over the past five years as operators have aimed to reduce costs. IBISWorld expects that the industry is undergoing a phase of divesting non-core physical assets, and is selling previously acquired property and land to investment funds in order to focus more on the management of storage facilities. In 2013-14, industry revenue is expected to increase by 2.3% to total $741.1 million as low interest rates and high consumer confidence support growing industry demand.

Over recent years, industry operators have begun to increase their range of services, with the addition of specialised storage options such as wine storage, firearms storage and high-security storage options. “These higher value service options are likely a result of cost reductions made by industry operators, allowing them to focus more of their assets towards the provision of value added services to attract and maintain a wider consumer base,” says Lin. The industry exhibits a low level of market share concentration. Major players include Kennards Self Storage Pty Limited, Storage King Management Pty Ltd and National Storage Pty Ltd.

Aided by steady demand and growing service options, the Self-Storage Services industry is expected to continue to record strong profits. Large industry operators are expected to continue in their pursuit of acquisitions in an effort to build greater economies of scale. As a result, cost cuts by larger industry players will persist. Despite these favourable conditions, competitive pressure is forecast to build up as competition becomes increasingly geared towards price, especially for generic self-storage options.

For more information, visit IBISWorld’s Self-Storage Services report in Australia industry page.

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IBISWorld industry Report Key Topics

Businesses in this industry provide facilities and services that allow consumers to store their own goods.

Industry Performance Executive Summary Key External Drivers Current Performance Industry Outlook Industry Life Cycle Products & Markets Supply Chain Products & Services Major Markets International Trade Business Locations Competitive Landscape Market Share Concentration Key Success Factors Cost Structure Benchmarks Basis of Competition Barriers to Entry Industry Globalisation Major Companies Operating Conditions Capital Intensity Technology & Systems Revenue Volatility Regulation & Policy Industry Assistance Key Statistics Industry Data Annual Change Key Ratios

About IBISWorld Inc.

Recognized as the Australia’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit https://www.ibisworld.com.au or call (03) 9655 3886.

(via PRWeb)

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