Self-Storage Companies Weather the COVID 19 Storm
The economy has taken a massive hit because of the complications brought on by the COVID 19 virus. McKinsey notes that it may take as much as five years for specific sectors to recover to the point of their 2019 levels of contribution to GDP. The US primarily has been one of the hardest-hit areas, and individual states have their own opinions on how to handle the virus. This discrepancy in management has led to the rapid spread of the disease, further curtailing business activities.
In some parts of the world, such as New Zealand, self-storage services have been deemed essential and allowed to continue operations throughout the pandemic. Inside Self Storage mentions that some states have made it clear that self-storage facilities form part of the logistics industry and are essential to the supply chain. In contrast, others have omitted the sector entirely, leaving it mainly to the consideration of the operators to determine whether they’re essential or not. For some enterprising self-storage companies, the lack of legal precedent means they are willing to operate outside the law. However, it depends upon the interpretation of the shelter-in-place orders. It doesn’t take a lot to shut those companies down and hit them with a significant fine for violating public health ordinances. The question operators need to weigh is whether taking the chance is worth the lives of employees, and if the money they make will help them stay afloat during the coming economic downturn.
Recovery for the Sector?
The global pandemic has made traveling difficult, and so one of the significant lines of business for self-storage facilities has dwindled. Still, once borders reopen, companies may be able to resume their everyday operations, provided they manage to survive. With some storage operators working on fragile margins, the possibility of closure is always imminent. If they exist in a state when self-storage doesn’t count as essential, each day that lockdowns continue to mean one day closer to shutting down operations.
The “New Normal” Awaits
Until businesses resume operations, there’s scarcely anything that these self-storage businesses can do aside from hope to ride out the uncertain economic times. The problem is that there’s probably a lot more in store in the future. Despite this, once people start moving around again, the demand for local storage pod rental may actually see a recovery. Whether they have enough of a buffer to weather the storm that the virus is bringing with it to hit the entire global economy remains in question.