The Mobile Storage Industry

  • The shed and mobile storage services industry, has experienced surging  demand in the five years to 2017. The residential market makes up the  industry's largest revenue source, estimated at 80.0%, with demand  dependent on existing and new traditional and mobile residential sales.  Consequently, improving demand from both residential and commercial  construction markets propelled the industry growth during the five years  to 2017, with revenue expected to rise at an annualized rate of 3.2% to  $7.4 billion. In 2017, growth is expected to be especially strong as  falling oil prices reduce the industry's transportation costs, the  establishment of new dealer lots and increased sales from existing  dealer lots increase shed sales, resulting in an industry wide 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.