subject: Self Storage As An Economic Guide [print this page] The economy is growing, green shoots are in evidence again, the good times will soon be back - hurray. Or at least that's what we think. In truth it's devilishly difficult to work out the state or direction of the economy. Small but weak growth may be encouraging, but it hardly inspires confidence. Unemployment is still growing. It reached an all time high in the last month and for many businesses the world still seems a frightening and uncertain place. However, I believe I've found an excellent indicator for the economy in the health of the self storage sector.
Allow me to explain. When you're looking for signs of economic growth it's best to examine the performance of certain core industries. These are those that rely on a healthy and vibrant business climate in order to succeed. Investors use these to judge when they should re-enter the stock market and we can do the same thing.
There is significant evidence to suggest that the self storage industry is a reasonable indication of economic success. For a start, the use of these facilities suggest the proximity of an upwardly mobile local population. This is often young and professional.
We have seen examples already of various self storage companies choosing to relocate themselves next to brand new residential developments. As such, the more of these companies we see entering a certain area the more we can make a judgment that the industry is showing significant potential for economic development.
Take the market for self storage in Milton Keynes, for example. This is growing substantially in line with the prosperity of the town. This has been recognized as a centre of economic expansion, by various expert bodies thanks to its health economy and central location. As a result it has seen a significant influx of business into the region with a similarly impressive growth in terms of new residents. They all need to store their belongings away which is why you'll see the major firms all bidding to gain dominance in the local market.
Admittedly this is not the most scientific study ever deployed, but it does have value. With the economic climate still showing serious signs of volatility it has never been more difficult to make any hard and fast predictions. Certainly the experts seem divided which is why we need reliably indicators that deliver their messages in the form of cold hard mathematics to do the job for us. That's why economists should be monitoring the health of the self storage market to judge economic health.
