The industry is expected to benefit from an uptick in demand from commercial clients as corporate markets and retail sales grow.
New York, NY (PRWEB) April 25, 2015
The Mobile Storage Services industry, which provides door-to-door moving and storage services to consumers and businesses, has experienced surging demand in the five years to 2015. Although demand for mobile storage services came to a screeching halt during the real estate bust, the subsequent recovery in the residential real estate sector has improved the industry's fortunes. The residential market makes up the industry's largest revenue source, estimated at 80.0%, with demand dependent on existing home sales and housing starts. Consequently, improving demand from both residential and commercial construction markets are expected to propel the industry to growth during the five years to 2015, with revenue expected to rise at an annualized rate of 3.2% to $7.4 billion. In 2015, growth is expected to be especially strong as falling oil prices reduce the industry's transportation costs, resulting in a revenue increase of 6.2%.
The industry has also benefited from the growth of corporate markets. According to IBISWorld Industry Analyst Dmitry Diment, “Since industry operators provide furniture and equipment transportation to downstream commercial clients, as well as document storage, demand for industry services increases as businesses expand their operations.” Although the office rental vacancy rate, which serves as a proxy for business activity, continued to rise during the first half of the current five-year period, a turnaround finally occurred in 2012. The office rental vacancy rate is expected to fall from 2012 to 2015 as corporations expand operations, increasing demand for industry services.
“With the economy projected to grow substantially during the next five years, downstream demand for mobile storage services is projected to increase,” says Diment. “The industry is also expected to benefit from an uptick in demand from commercial clients as corporate markets and retail sales grow.” Although fuel prices are projected to increase, the industry will benefit from comparatively low oil prices. Since companies in the industry use trucks to transport storage containers from door to door, the price of fuel is critical to the success of the industry.
For more information, visit IBISWorld’s Mobile Storage Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry provides mobile self-storage services mainly to consumers. This industry differs from self-storage operators in that firms in the industry provide customers with door-to-door pick up and delivery service. Additionally, portable storage services, which are not included within this industry, are generally used in the commercial market.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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