MCU14/0056 Economic impact report Att B - Information response

4.2         Need and Demand

4.2.1       Self Storage Industry Characteristics
The market for secure self storage facilities has traditionally been associated with people
who are moving house or city (or overseas) particularly where their new circumstances
allow insufficient space for their possessions. The self-storage industry provides an
alternative to disposing of possessions or living in cramped environments.
Use of self-storage facilities is strongly correlated with household income and wealth, with
the industry’s largest market consisting of the top 40% of households in terms of income.
However, middle-income households (between the bottom 20% and top 40%) are also a
growing base for the industry 6. Upper income households have also driven demand for
specialised secure services such as temperature controlled storage for wine and art,
guns, boats, jet skis, cars and other large and/or valuable items.
Businesses also form part of the market for self-storage facilities for the temporary and
long term storage of inventory, tools, materials, business records and other items.
Consumer research undertaken on behalf of the Self Storage Association of Australasia
provides a more robust indication of demand drivers for both private and business users
of self storage facilities. 7 Based on capital city interview surveys of an on-line sample of
3,500 general population respondents, and a sample 1,692 current users (using self-
completion questionnaires), the research highlighted the key reasons for using self
storage facilities by private (household) and business users, and other industry
characteristics. Figures 4.2 and 4.3 summarise the top nine reasons for their use.
As is clear from the Figures below, the key reasons or drivers for self storage are a lack of
space at home or place of business, temporary storage between locations or while living
away from main residence, need for a secure environment, and economical and cost
efficient storage solution.




6
    IBISWorld Industry Report, May 2014. Self-Storage Services in Australia
7
 Self Storage Association of Australasia, 2013. Australasian Self Storage Demand Study 2013: A
Study of Storage Demand and Consumer Preferences.

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Myall Street – Information Request Response
12022-1 Rev 0
22 December 2014