By Chester A. Gilliam

These days, self-storage facilities are quite different from those built 10 or 15 years ago. As they have evolved into state-of-the-art facilities offering much more than simple storage, their security needs, too, have progressed. Security systems require more planning and specialized equipment than ever before. Gone are the days of an architect drawing a line on the blueprints and calling it a gate. Also gone are days of waiting until the last few weeks of construction to choose your security vendor and system installer.

The biggest pitfall of installation is poor planning. Developers spend months determining just the unit mix, laying out plans and selecting buildings with little attention to security needs. Security must be accommodated from the beginning, as site layout can play a big part in how well a system functions. For example, if the gate is not placed properly on the site plans, you could end up with a layout that does not work well for traffic flow and creates operational problems.

It is imperative to include as part of your design team people experienced in the planning and installation of storage-specific security systems. You need professionals who can take an honest look at your site needs and budget, and devise the best system for your particular site.

General Installion Requirements

There are four major areas to consider when it comes to security installation: gates, access control, door alarms and video surveillance. Each has its own set of problems with respect to installation, operation and maintenance. However, there are some issues that seem more commonplace than others. First, let’s look at general rules for proper installation:

• Use professional assistance in selecting security systems.
• Plan your site for security. Place buildings on the outside perimeter instead of using fencing.
• Incorporate your security system when considering your budget.
• Allow time for the installation of the security system. Much of the equipment cannot be installed until the site or buildings are complete. Prepare in advance by getting your installer involved in the beginning. Follow time lines, and keep your installer informed of schedule changes as they occur.
• All exposed wires should be enclosed in conduit or otherwise protected.
• All wires and conduit should be secured to the building.
• Conduit size and location is critical in the planning stage. Look for what you want now and what you may want to add later in the way of equipment.
• Avoid running wires through buildings. It is better to lay conduit than to run wires through units.
• Place conduit on the outside of buildings. This may not look as clean, but it makes for a better installation.
• Never place security equipment inside units. You must be able to access it for service.
• Plan for all the items you need to plug into electrical outlets. Get your installer’s input on how many outlets to use and where they should be located.
• Allow room and mounting options for equipment.

Security Gates

Design is everything, and gate placement is one of the most important and misunderstood security-system components. The entry gate must be in the right position to allow for the correct flow of traffic while providing admission to the office and controlling access to the site. This sounds like a lot to consider; but if you look at your plans and think about who will be using the gate, as well as the types of vehicles it will have to accommodate, you can minimize problem areas.

Here are some basic rules to follow for gate installation:

• Gates should be between 16 and 20 feet in length.
• Avoid using a track on the ground. It will cause problems sooner or later.
• Use a commercial-grade gate operator. Operators are rated as to duty cycle, gate length and gate weight.
• Follow UL 325 standards. This sets the criteria for the gate and related safety equipment.
• Allow for the size and length of various vehicles. Visitors should not block traffic when entering the site.
• Install a pedestrian gate.
• Keep the gate area as flat as possible. Avoid deep Vs or grade changes in the gate area.
• Ensure the gate has plenty of room to open.
• Choose a proven gate design that will work well in your specific environment. Try to avoid a swing-gate system.
• Check with the fire department to see what it will require in terms of gate size and how it will open the gate in times of emergency. Chances are, planning and zoning did not get its input on your security system; and it is your responsibility to make sure you are in compliance with local requirements. Life safety always has the last say.

Access Control

Where there is a gate, there will be an access system. Keypad placement is critical to your traffic flow. Placing keypads on the wrong line can turn a good gate design bad. While the standard for keypad placement is between 15 and 20 feet from the gate, sometimes it is necessary to place it closer or farther to assist traffic flow or control who has the right of way through the gate.

Keypad placement can look good on a blueprint and yet not work so well in the field. When deciding keypad and gate positions, it’s a good idea to look at the lay of the land. Examine the site and study how the gate and access system will look and feel when being used—where your buildings are, and the approach to the entry and exit keypads. Also consider what protection can be given to the keypads while they are being used.

General rules to follow for access-control installation include:

• If possible, place keypads between 15 and 20 feet from the gate.
• Always place bollards around keypads for protection.
• Keep the approach to keypads in a straight line with the gate. Avoid placing them on curves or at a right angle to the gate.
• Keep keypads in line with the edge of the gate opening. This properly aligns the tenant as he enters the premises.

Alarm Systems

This is one of the most dramatic areas of change in the storage industry. Alarm systems have become more stable and reliable, offering true tenant protection. While they have evolved, they have also become a requirement in getting and keeping customers.

The biggest problem with an alarm system is it is has to be installed correctly. You need an installation company with self-storage experience. A general alarm-installation company or electrical contractor is not a good choice. There are numerous differences between a standard burglar-alarm system and a self-storage system. This makes it imperative to hire someone qualified. Most systems on the market are very stable and reliable as far as the equipment goes. However, a bad or even marginal install can cause you problems from the start.

Here are some rules for alarm-system installation:

• Get a competent installation company to do the work, one that has experience with the system you have chosen.
• Make sure the correct wire is used. Type, size and number of conductors are outlined in the manuals provided by the manufacturer.
• Wires should be protected and secured in place with tie wraps. Tie wraps should be secured to the building with screws.
• Use a switch designed for self-storage and make sure it is properly installed. This will greatly reduce the event of false alarms.
• Multiplexers or door-status boards should be mounted to be protected from tenant activity, never inside a unit.
• Grommets and edge protection should be used where wires go through or over wall partitions and red iron.
• Avoid putting equipment in a rentable unit. All equipment should be readily accessible for service and inspection.

Video Surveillance

The video industry epitomizes the phase “Change is constant.” With the introduction of the computer into the camera industry, we have seen changes at an unprecedented rate. And while these changes are wide in scope, they have simplified the installation and maintenance of CCTV systems.

Camera placement is the critical element, not only for what you are going to see, but performance. Cameras placed looking toward the sun or into shadows are going to have bad sight sometime during the day if not all of the time. Those placed where there are no gutters on buildings can be displaced during heavy snows, as can cameras exposed to areas of high wind or vibration. Choosing the right camera for the environment can make a big difference in performance.

Some rules to follow when installing surveillance cameras are:

• Choose a camera that has back-light compensation and low-light visibility.
• Mount all cameras on a stable part of the building.
• All exterior cameras should be designed for outdoor use. Most will require a housing with a heater and blower.
• Never point cameras into the sun’s path.
• All cameras should have an auto-iris lens, even indoor ones.
• Color cameras give better recognition in daylight, while black-and-white cameras give better resolution at night or in low-light conditions.
• Cameras should be focused in the evening or at night.
• Make sure you have adequate wire size and power supplies for your camera system. Allow for outdoor enclosures.
• Power supplies should be fused and located in one area for maintenance.
• Place monitors away from glare areas, where they can be seen by tenants and used by managers.
• Understand how the camera system works before you sign off on installation the job. Make sure the cameras are recording.
• Do not use pan-tilt-zoom (PTZ) cameras unless you are going to have someone to control them. You can install three to four fixed cameras for the price of one PTZ camera.

More than ever before, self-storage security systems require more planning and a better understanding of what you want to achieve. The average cost for security has risen dramatically; and it is no longer practical to avoid planning for your system during the planning stages of your project. Security is often the last system put into a project, and owners often neglect to reserve ample time or funds for proper installation.

When budgets get tight, the security system is often one of the first things cut or reduced. Ironically, one of the first things prospective tenants inquire about is security! Planning for your security needs in the beginning will avoid problems at the end of your project.

Chester A. Gilliam has been involved in selfstorage security for the past 20 years. He now works for Wizard Works Security Systems Inc., a Littleton, Colo.-based provider of access systems, individual door alarms, gates, fencing, management software, surveillance cameras, perimeter security, sales, installation and service for the self- storage industry. He can be reached at [email protected].

By Joe Burt

In the course of planning the perfect self-storage facility, there is one component common to top-shelf projects: security. This can be as simple as perimeter fencing with an automatic gate-entry system, or as complex as individual door alarms, complete video surveillance and high-security areas in the corridors. These days, there are multiple providers for every security option; and when the dollar is dangled, everybody becomes an expert. There are endless waves of distributors and consultants just dying to get your business. The key is to figure out what is best for your particular situation and facility.

Too often, owners end up with a blueprint and security-system spec from their architect. On paper, it may seem like a great application with all the bells and whistles. But usually, there is no specific manufacturer identified; and the design actually requires that several different systems be married into one. The result is a security solution that is very expensive and probably will not perform reliably. The architect did not take time to learn the intricacies of an average self-storage operation and the wide variety of systems designed specifically for the industry. That is where a self-storage security provider can help.

Understanding the Basics

To understand the basics of a security system, you need to define its components. Security can be overwhelming if you look at the system as a whole. Breaking things down will help you better decide what might be right for your application. There are many features that help protect a facility, such as good lighting, proper fencing and even the right door latch and lock. These are all very important considerations; but for our purposes, we will focus on electronic elements. The important thing is to make a distinction between the two types of electronic security devicesactive and passive.

An active security device is one that makes things happen. A keypad that signals a gate to open, a card reader that releases a magnetic door latch, or an alarm point that activates a siren when violated are all examples of active security. These are the devices with which managers and customers are going to have constant contact, since they are your frontline components.

Passive security devices are those used retroactively to determine the facts when an incident occurs. The most common example is a video-surveillance camera. An activity log in your security-control software or panel can also be a passive tool. Both, while displaying realtime information, do not actively do anything with that data. Mining the information is purely up to the operator.

Lets take a look at how a typical security system would operate at a moderately secured facility: A tenant drives up to the gate and enters his personal code at the entry keypad. The keypad processes the code and, if it is valid, the gate begins to open. At this time, there are a few things happening of which the tenant may not be aware. First, the video camera in the office is taking and saving a snapshot of the person who has entered the code. Second, the facilitys security/ management software is creating a log of who is entering, complete with a date and time. Third, and perhaps most important, the alarm contact on the tenants unit is being disabled.

Once the gate is fully opened, the tenant drives through the facility to his unit. All the while, his activity is being recorded by the video-surveillance system, with cameras placed at strategic locations throughout the facility. When he arrives at his unit, he uses his key to unlock it and opens the door. The computer in the main office is notified the door has been opened and, because the tenant entered his code at the entry, the control equipment knows this is OK; it does not, therefore, initiate any alarm.

When the tenant has finished his business, he closes the unit door. This is reported to the office computer and recorded in the systems activity log. On his way to the exit, the tenants actions are again recorded via camera. He reaches the exit keypad and again enters his code. If the code is valid, he is allowed egress and the alarm contact on his unit door is rearmed.

Choosing a Vendor

Once you have an idea what your basic security system should include, it is time to seek out industry vendors who provide what you need. There are many resources that can point you in the right direction. Industry publications such as this one are a great place to begin gathering company names and learning about suppliers. Industry-specific buyers guides, published annually, identify the product offerings of each company as well as provide detailed contact information (some will even tell you a providers tenure in the self-storage arena). Finally, there are always informative workshops and seminars at industry tradeshows.

The task of choosing a provider should not be taken lightly. A wrong decision could result in big headaches and lost revenue down the line. An informed consumer is an empowered consumer. When you first make contact with a self-storage security provider, there are several things to which you should pay attention.

First, look at the companys initial sales package. Does it contain information about all the items in which you are interested? There is no sense wasting time on a company that only does part of what you need when several companies provide complete packages. Understanding each companys offerings as presented in its printed collaterals can help you pare down your list of providers to a manageable level. While going through the different packages, write down a running list of questions for each company. This will help you stay focused and give you a clearer sense of what you want in a system.

Second, pay attention to how the company responds to your requests for more detailed information. Is it willing to share things like installation drawings and system documentation? These days, reliable vendors will be more than happy to provide you their documents in either printed or electronic formats. This can help you learn how their products work and all of the different options fit together.

Finally, inquire whether the security vendor offers professional engineering services. It should be able to take a blueprint or CAD file and edit it to show important items, such as conduit runs, keypad and camera locations, focus directions and anything else pertinent to your facilitys needs.

Bringing It All Together

Once you understand the security options and features available, the next logical step is to write the check and move on, right? Not in this writers opinion. The next step is to decide who will install the system for you. This can be a bit tricky, but finding the right company to properly install and set up your system is almost as important as the system itself.

Whenever possible, find an installer in your geographic area. Finding one might be easier than you think. Most established security providers have a network of factory-authorized dealers of their equipment. These dealers are familiar with the manufacturers proprietary equipment and how some of the ancillary devices are integrated into the system.

Having a local resource is a real benefit during the installation process. Inevitable construction delays and material-delivery problems are much easier to handle if the authorized dealer is local. It can help manage the process and head off any potential holdups. Another hidden benefit is you have somebody to whom to turn after the installation is complete. If you purchase your equipment from an authorized dealer, it is reasonable to expect it will extend the manufacturers warranty to you and be able to stand behind the system you purchased.

Too often, I see facility owners purchase systems and arrange for nonauthorized installation staff. These folks are usually familiar enough with the system to make it work initially, but they have no vested interest in making sure things run well for years to come. They were just hired as installation labor. A few months after the property opens, a problem arises, and the owner is left holding the bag. If he should call on the installer to fix the problem, he can be charged for a follow-up service call. What might have seemed like a bargain in the beginning becomes a system that is more expensive than if it had been installed by a factory-authorized dealer.

Do not hesitate to contact the factory if there are any questions about what an authorized dealer proposes to you in terms of options and/or labor. Remember, your vendors first responsibility is to ensure you understand what you are getting in a system.

Cashing In on Your Investment

While gathering and assimilating information about your security system, start thinking about how you are going to market it. You may be thinking, Market my security system? You have planned and are spending good money for quality security. That should be used as a primary feature of your facility when appealing to prospective and existing tenants, one that can be an advantage over your competition.

For example, many facilities display a bank of monitors behind their rental counter. These show the views from the facilitys video-surveillance cameras. They are usually coupled with a color-coded map of the facility that clearly identifies the status of each unit, updated in real time. This gives prospective tenants a strong impression of a secure facility as soon as they walk through the door. Similarly, as a facility manager tours the property with prospects, he should point out the locations of security keypads and video cameras and explain how they work. Describing the individual door-alarm system is also a good selling point.

There are many facets to self-storage security. It is up to you to decide what is truly important to you and your tenants. Find the company that best meets your needs, remembering your security system is more than just a purchase. It is a partnership that should serve you, your facility and your customers for many years.

Joe Burt is the director of international sales for Sentinel Systems Corp. of Lakewood, Colo., which has manufactured self-storage software and security systems since 1975. Mr. Burt has worked at Sentinel since 1990. He can be reached at 800.456.9955 or via email at [email protected]. For more information, visit www.sentinelsystems.com.

By Jim Chiswell

Do you send a welcome/thank-you letter to all of your new customers? Its a simple task, one that can be automatically handled by most self-storage management software programs. If you dont, keep in mind the underlying purpose of this letter is not just to thank your customer for renting with you; it can also help determine if he has given you a valid mailing address.

If you send a thank-you letter within a week of renting a unit and it is returned as undeliverable, you have a problem. Obviously, the customers address is either listed incorrectly in your database or is truly invalid. In either case, immediate action must be taken by your management staff to determine and correct the error.

Should you encounter a wrong address, you must first assume it is your fault and not the customers. The data could have been inaccurately entered into the computer. The misspelling of the street address or the transposition of a single digit in the ZIP code could have resulted in the return of your letter. Remember, in most communities, the letter carrier is not doing any sorting by hand. If the sorting machine does not recognize the ZIP code, the mail will be returned.

First, check the copy you made of the customers governmentissued photo ID. Of course, you can only do that if 1) you insisted on seeing a valid form of ID and 2) you have a good copy machine. (And please dont say you cant afford a copier for the office, especially when three-in-one (printer/scanner/copier) ink-jet printers sell for as little as $100 to $125.) You should have enlarged the image so it is easy to read. Its much simpler to check the information on the ID when the image is 200 percent larger than the original.

If the information from the customers ID does not assist you in correcting the error, try calling the tenant directly. You can also try reaching other contacts listed in his file. These days, it is not uncommon to have an e-mail address or cell-phone number. If all attempts fail, you may have an underhanded renter on your hands. Taking time with each customer at the time of rental, asking questions, and gathering information accurately and completely will help you avoid this situation. Attempting to mail a thank-you letter will alert you to potential problems early in the game.

On the Bright Side

OK, enough about the dark side behind sending thank-you letters. Even though an early warning to a problem is of benefit to us, we should not forget the value of an opportunity to tell customers we appreciate their business. Letters give you the chance to communicate a variety of messages to tenants:

• Use letters to remind customers of your referral program. If you dont have a referral program, you should, as it can generate new business.
• Let tenants know that if they want to rent additional units, they can do so without having to repay administrative fees. You can also offer them some other type of incentive.
• Remind tenants of gate and office hours and their payment schedule.
• Provide a contact number tenants can call in the event of problems. If you work from a different location than the one where the customer rents, include your address and phone number.
• Finally, dont forget to ask for positive, constructive ideas to make customers rental experience better.

Customers initial perceptions of a self-storage facility can be positive, and a personalized letter can reinforce those good feelings. I did say personalizeddo not open a letter with Dear New Tenant. And dont use a business envelope with one of those clear windows that shows the address off the letter. An envelope addressed by hand will receive much more attention, especially if it has a stamp instead of a meter mark.

There is no rule that says the letter can only be one page; so get the most out of the postage you are using. And dont forget your referral or business- card inserts. Consider making the thank-you letter a part of your marketing budget, one that gets top priority from your entire management team.

Run, Charlie, Run!

If you have not heard, a self-storage owner is running for Congress. Charlie Broomfield is running in the 6th District to unseat incumbent Sam Graves. Charlie has been a rallying force for selfstorage in Missouri and across the nation for many years. His insights and powers of persuasion have helped to strengthen the industry.

No stranger to public service, Charlie served in the Missouri House of Representatives, initially elected in 1964 and re-elected in 1966, 1968 and 1970. He was later elected Western Judge/Commissioner on the Clay County Court of Missouri. Winning re-election seven times, he served a total of 14 years in this position.

It is not every day we have a chance to support one of our own for national office. Now each of us has a chance to have an industry friend in Congress; and I encourage you to join owners across the country in providing financial support to Charlies campaign. Whether for $25, $100 or the federal campaign individual limit of $2,000, donations can be made by making a check payable to Broomfield for Congress Committee and mailing it to P.O. Box 681068, Riverside, MO 64168. You can contribute online and learn more about Charlies campaign at www.broomfieldforcongress.com.Your support is needed and appreciated. Good luck, Charlie!

Dont Waste Opportunity

During a recent visit to a self-storage store in Charleston, S.C., I observed something that surprised even me after 19 years in this business. I overheard the facilitys manager, Teri Tunender, answer the phone with a very professional, sincere greeting. It was soon obvious she was talking to a person who had dialed the wrong number. Instead of telling him he had dialed incorrectly and hanging up, Teri got out her Yellow Pages and attempted to find the correct number. But this wasnt what amazed me.

After having found the number, she started to solicit the caller for a self-storage unit. She just took a moment to tell him where the facility is located, that it offers a variety of unit sizes, and that she would welcome the opportunity to assist him in determining the size he might need. I have never witnessed a manager try to sell storage to a caller who had dialed a wrong number. Great going, Teri!

In truth, I should not have been surprised, because Teri fully understands the concepts of customer service. She knows that successfully focusing on those concepts will continue to bring in new rentals. Dont miss unexpected opportunities to promote your business, better serve customers and increase occupancywhether it be a simple welcome letter or a phone call made in error.

Jim Chiswell is the owner of Chiswell & Associates LLC. Since 1990, his firm has provided feasibility studies, acquisition due diligence and customized manager training for the self-storage industry. In addition to being a member of the Inside Self- Storage Editorial Advisory Board, he contributes regularly to the magazine and is a frequent speaker at ISS expos and national and state association meetings. He recently introduced the LockCheckTM inventory data-collection system to the self-storage industry (www.lockcheck.com). He can be reached at 434.589.4446; visit www.selfstorageconsulting.com.

By Elaine Foxwell

You have purchased the land for your future self-storage facility. It has a good drive-by location, zoning has been approved, and you are ready to build. An easy way to see your project become a reality is with panelized buildings. Modular Mini Storage provides unique building kits to the self-storage industry. Walls are prefabricated and delivered to the site ready to stand in place. The local contractor finds them easy to assemble, says Terry Wellner, the companys CEO.

Founded by Wellner and Bob Allworth, project manager, Modular has been building high-quality self-storage buildings since 1993. The companys 13,000-square-foot shop is in Tualatin, Ore., near Portland. Were a small company without a sales staff. Most of our work is for repeat customers and people who hear about us from folks weve worked with, Wellner says.

Strong, Efficient Construction

The foundation of the Modular Mini self-storage kit is the wall system. Nearly every wall is a weight-bearing shear wall, making our buildings some of the strongest in the industry, Wellner says. Each building is composed of galvanized-steel framed walls, prefabricated in the companys shop under stringent conditions. Special fixtures and tooling enable efficient manufacturing to keep costs low. Using computer generated shop drawings, Modular builds each wall on special framing tables to maintain dimensional tolerances and ensure quality. Steel studs are custom cut to length, minimizing waste, speeding manufacture and reducing costs.

Our buildings are specially designed for Northwest climates, although we have shipped all over the United States, Wellner says. Modulars double-wall construction, standing-seam roofs and extra insulation create tight, energy-efficient spaces. Partition walls minimize condensation and provide a warm, inviting storage environment. Large commercial gutters and downspouts look great and keep customers dry. For some locations, Modular provides insulated sectional doors for exterior units. Kits also can be easily modified for heavy snow, wind or seismic loads.

Firewalls are included in every kit. Walls are pre-framed with steel studs on 2-foot centers or less, so the additional cost of firewalls is minimal. One layer of drywall is applied in the shop, and remaining materials are supplied with the building kit for installation in the field. Drywall for building fronts is precut to minimize fieldwork. In addition, the roof slope is built into the wall eliminating the need for roof trusses thus helping to reduce time and cost.

The security of a Modular Mini facility is enhanced by double-wall construction around each buildings perimeter and sturdy partition walls made with heavy-gauge steel studs, OSB (oriented strand board) shear diaphragms, and state-of-the-art, knurled fasteners. There are more than 150 fasteners on a typical 10-foot wall section, and you need a sledgehammer to get them apart, Wellner says. All fasteners are concealed to prevent injury to people or damage to property.

Diversity and Growth

Although self-storage buildings are its main focus, Modular also provides panelized kits for RV and boat storage, light-industrial flex space, office/residences and portable-storage modules. The companys RVstorage buildings provide completely enclosed, individual units, complete with 24-gauge, sectional roll-up doors. Units often have electric door openers with their own security codes.

Some of Modulars customers are including office/warehouse units in their mix and report they are very pleased with the results. We believe this is a real growth opportunity for self-storage developers, says Wellner. These buildings can be located on smaller, less-visible sites. Developers spread their risk by appealing to contractors, small businesses, and companies needing a bit more warehouse space. Our buildings are particularly well-suited for this use. Our unique panelized design is very competitive with conventional red-iron buildings.

The kits partition walls not only divide units, but provide the structure to support the roof. Office walls include door and window openings and are easily insulated. Firewalls are included as required, as well as standing-seam roofs, and 12-foot-wide by 14-foot-high doors. Three panelized office/residence kits are available, ranging from 1,500 to 1,800 square feet. All are two stories with the office and main living area on the first floor. On a typical project, the residence usually takes longer to finish because of the number of trades involved. However, Modulars residence kits give customers a jumpstart by shortening overall construction time.

Portable-storage modules are designed to uniform building-code standards and, if necessary, are eligible for building permits. Floor systems use pressure-treated beams and joists and are designed for 125 pounds per square foot of floor loading. Roofs are standing-seam. When placed side by side, the units look like conventional self-storage buildings.

Providing Design Support

Modular provides more than just buildings. We help customers with any area of the project where they need help, Wellner says. Many times, well recommend an experienced contractor in their area, or visit the job site to help a new contractor get off to a good start. The company works with its customers and their planning departments to develop the best possible site layout. This often involves zoning, storm-drainage, fire, water, wetland or other issues.

It is gratifying to help folks new to our industry develop a successful project, Wellner says. They usually wind up with considerably more rentable space than they expected and a much more competitive facility. Many believe heated storage is a lot more expensive to build; but with our system, this just isnt the case.

Allworth and Wellner have extensive construction experience, enabling them to be involved in all aspects of the company. Allworth has worked in occupations from chef to commercial fisherman in Alaska. He has also traveled to Japan to assemble some of Modulars custom homes. Wellner, who has masters degrees in mechanical engineering, has also been involved in a range of occupations. These diverse backgrounds allowed the founders to develop a successful company serving the self-storage industry with a unique product.

For more information, call 503.692.3532, visit www.modularministorage.com.

By Amy Campbell

About three years ago, Allen Perreault, a former golf pro, again found himself spending a lot of time on the green. The installation manager for U. S. Door & Building Components Inc., an Orlando, Fla.-based supplier of commercial and self-storage roll-up doors, frequently teed off with his pastor from Metro West Church of the Nazarene in Central Florida.

Around that time, the pastors sermons focused on the merits of volunteering; and they were an inspiration for Perreault. He thought back to his childhood, when, at age 10, he learned to play golf from a group of adult volunteers. I saw good role models and mentoring, things I really liked, he says. It was time for me to do the same thing they did for me when I was little. I wanted to get involved with kids, teach them what I know, be a role model and mentor.

Perreaults mission began slowly. Using the church as a springboard, he launched Future Masters Inc. in September 2001 with 25 students, all children of church members. The group met for an hour every Saturday morning to learn golf in a little field next to the church. The smiles and enthusiasm the kids brought with them were very contagious, and a great fellowship began in the group, Perreault says.

Future Masters has since grown. The program now has about 160 children, ages 3 to 18. The group has also graduated to a larger practice space: Barnett Park in Orange County, which has an official golf-training area.

Perreault has been joined by other members of the church, all volunteering their Saturday mornings to teach children how to putt, drive and chip. The course is six weeks long. The first four classes are dedicated to teaching the basics of golf. The fifth week is a skills competitiona drive, chip and putt contest. The final week is a chance for the kids to shine in a tournament divided by age group.

After the tournament, the students, parents and golf instructors head back to the churchs dining hall for a well-deserved picnic and awards. During our awards program, we let all of the kids know they are all winners; and by working hard in our program, they will grow and become champions, Perreault says. All of the children receive a winners certificate, and we recognize the top performers with trophies.

The children can stick with the program for as long as they wish. A fresh sixweek course begins every 10 weeks. To encourage children to participate beyond their first course, Perreault implemented a Player of the Year program. The kids accumulate points for attending the golf classes, community volunteering and doing well at the tournaments. The child in each age group who gains the most points is awarded a plaque and Target Stores gift certificate. We encourage the kids to stick with the program, and most of them have, Perreault says.

A $5 donation to offset the costs of food and awards covers the six-week course. All of the equipment was donated or purchased with donation funds. This year, Future Masters received contributions from Target Stores and the Orlando Orange County Expressway Authority. Perreault also negotiated a deal with the Orange County National Golf Course to use its course for free on tournament days. Families participating in Future Masters can receive a discount at the golf course.

The childrens program proved to be so successful, a womens beginners program was launched. Then the dads saw how much fun the moms were having, so we started a mens program, Perreault says. Future Masters has also reached beyond the church doors. Last spring, 25 kids from a troubled-teens program turned out for the six-week course. The program is rewarding for Perreault. Not only does he get to pass on his love for the game to a new generation, he gives back what was once given to him. The volunteering aspect and team work, teaching the kids about giving back to the community, to volunteer, to give of yourself, is what I enjoy, he says.

The venture has also become a family affair. The parents come and help, and they get involved with their kids, Perreault says. That includes his family: his wife, Kim, and the couples children. Kim also introduced a Life Skills program that helps focuses on sportsmanship, safety, respect, rules of the game and volunteerism.

Although the golf program is for beginners, Perreault hopes to one day offer more advanced classes and possibly a golf course for the students. Plans are already under way to expand the Life Skills program and introduce more intense tournaments.

While Perreault says running a volunteer program takes a lot of patience, the experience has been very fulfilling. Working with kids is a tremendous blessing, he says. They bring their smiles every week, and thats what makes it all worthwhile.

If you are interested in obtaining information about starting a childrens golf program or would like to help Future Masters continue to grow, call 407.292.9236.

By Brad North

Have you ever picked up the phone and shopped around for a storage unit? This is a great way to discover which sales presentations you like and dislike. If you call enough places, however, you will also find most sales consultants in the storage industry do not earn the right to make an appointment with the customer. Even if they ask for a reservation or site visit, they often do not educate, build value and earn the prospects trust.

It is critical for self-storage operators to properly train and equip managers to be sales professionals who understand the importance of maximizing their potential through more appointments. In this industry, we convert less than one-third of our callers into renters. Industry statistics also tell us that if we can create an appointment with the customer, we will rent a storage unit more than 90 percent of the time.

If we become better in our telephone-sales presentation, can we increase our site visits and rent more storage units? Absolutely! Doesnt this tell us we need to be more focused on becoming telephone-sales professionals, developing better skills to create more visits? Not only will this allow us to be more successful, it will prepare us to overcome increased competition, now and in the future.

Tracking Sales Performance

Once you understand the wonderful concept of being a sales professional, you must start with measuring your sales performance. How can you improve if you do not know where you stand? Determine the most effective system for tracking your performance, and implement it in your everyday business. You will be amazed at what you discover. Areas of a sales program worth measuring might include:

• Number of callers converted to renters (telephone-conversion ratio)
• Number of prospect calls by week and/or month
• Number of walk-in customers by week and/or month
• Number of appointments set by week and/or month
• Number of no-show appointments by week and/or month
• Actual rentals by week and/or month

These are just a few examples of items worth measuring. If tracked properly, they can provide powerful information for pinpointing areas of future improvement. Effective tracking systems can turn good managers into great ones. But what kind of system should you use? One possibility is a mystery-shopping program.

Mystery shopping allows a facility manager and anyone else involved in the selling effort of a self-storage operationthe opportunity to be evaluated on his telephone-sales performance. This is a great way to discover strengths and weaknesses in your sales program. If you choose this kind of service, incorporate it into your efforts on at least a monthly basis to develop overall consistency.

Improving Performance

Once you have identified areas for improvement, there are a number of avenues to increase performance. For example, consider available training resources. Is there someone in your organization equipped and qualified to perform sales training? If not, you might consider a consultant who specializes in this area. The money and time you spend can be valuable to the future operation of your business.

Once you upgrade your staffs sales performance, put into practice the systems necessary to reinforce training. This will help tremendously in making changes and breaking bad habits. It will also provide an ongoing means to measure and determine how sales performance is impacting your bottom line. If you use a consultant, be sure he is effective in his sales training and can make good recommendations on systems and programs that can make the transition successful.

Your sales training and resources must be centered on educating, building value and developing trust with the self-storage customer. The second most important reason a customer chooses a specific facility (after location) is perceived trust. If your sales professionals focus on building the value of the product and earning prospects confidence, they will be experts in setting appointments and creating site visits, which will translate into more rentals and higher profits.

In an article published in the March 2004 issue of the SSA Globe newsletter, industry consultant Ray Wilson pointed out that, in some markets, physical occupancy in stabilized facilities has dropped to less than 80 percent; and economic occupancy has dropped to less than 70 percent. He says, Given the amount of new competition, it is not likely to return to previous levels. This further supports the importance of hiring people who can be sales professionals.

Once you understand the importance of the sales program, invest in your team. One of the most productive ways to grow any organization is to grow the people within it. Self-storage operators who are willing to adapt and continually improve their operations are the ones who will rise to the top of their markets. Set your operation apart from the rest by educating, building value, earning trust and creating appointments with customers.

Brad North is founder of Advantage Business Consulting, which specializes in on-site sales, marketing, feasibility and operational training for the self-storage industry. He has produced two live videos and a workbook titled Maximizing Your Sales and Marketing Program, which can help managers improve their sales and marketing efforts. He most recently launched A TelePro, a mystery-shopping service that assists in educating, evaluating and improving the phone-sales performance of self-storage professionals. For more information, call 513.229.0400 or visit www.advantagebusinessconsulting.com.

By Cary F. McGovern

Who is the Sleeping Giant of records management? Is it a large company like Iron Mountain, Recall or Crown? Not at all. It may be the most unlikely competitor: a new breed of investor who understands the nature of the industry. This column discusses why the Sleeping Giant may be the biggest assault ever on traditional records storage.

A Tale of Two Industries

First, lets take a moment to look at the differences between selfstorage and commercial records management:

Self-Storage

Facilities require a significant real estate investment

A high level of location visibility required

3-to 5-mile market area

Advertising is important

Customer comes to self-storage

Financially sophisticated investor

Passive storagelittle labor required

30-day contract

Access to capital markets

Investors enter the industry from real estate development or other investment interests

Owners are from a white-collar background with a finance degree or MBA

Owners understand the need to acquire or hire expertise

Management-team orientation

Owners generally have marketing savvy but little direct sales experience

Commercial Records Management

• Real estate may be leased with little or no investment
• Location means very little other than to access highways and routes
• 25- to 75-mile market area
• Advertising has little effect
• Customer rarely comes to the commercial records center
• Bootstrap entrepreneur
• Active storagelabor required
• Permanent contract
• Sometimes undercapitalized
• Owners enter the industry from moving and storage, document destruction, courier services as well as self-storage
• Owners are from a blue-collar background with a hard work ethic
• Owners come from a do it yourself, learn while doing background and have little experience with experts
• Hands-on manager
• Owners may be both operators and salespeople, with little or no formal selling method

These industries could not have more different perspectives. Little has been written regarding how their disparities affect the current onslaught of new investors to the records-management community. Until a few years ago, records storage was considered under the radar. That is not the case anymore. Since the fall of the dot-coms, safer investments with recurring revenue streams have moved up the corporate ladder.

For example, Iron Mountains stock enjoys a highly recommended status by brokers and investor analysts. Many of the major brokerage and investment banks have identified commercial records management as a growth industry worthy of investment. Private equity has placed its mark on commercial records as well. Today, there are at least a half dozen well-funded companies buying records centers and increasing their market share and penetration through acquisition. These companies are strengthened by investments from large private-equity funds or owners with significant personal wealth.

Why all the interest? Self-storage owners and investors with millions of dollars at stake in their facilities are faced with more competition and are looking to other services and product differentiation to separate themselves from competitors. Additionally, when packaging a selfstorage facility for sale, the numbers do not always work as desired; but when records storage is added to the pro forma, the numbers change significantly in a positive direction.

A Tale of Distinction

The comparisons between self-storage and commercial records management speak volumes. Those entering the commercial records industry today are much more sophisticated than in the past. They tend to have more capital and business acumen and are steeped in planning and resources. On the other hand, the existing industry is filled with bootstrap entrepreneurs who have worked very hard to develop their businesses. They run their operations the same way they have for decades.

Since commercial records-storage initially emerged from the moving and storage industry, it has been considered a storage business. Today, it is a service business, driven by client needs. These needs seldom are as simple as storage. Storage is a commodity. The issues involved in records-keeping have more to do with locating items than simply storing them.

Modern-day businesses are required to produce records with integrity from the bowels of their archives to protect them from liability and ensure regulator compliance. Therefore, records-storage services are as basic as retrieval and delivery. But as these services are labor- and resource-intensive, they are relatively low-margin. The new commercial-records business model employs dozens of services that bring high value to the client and add margin dollars to the records centerthe higher the level of service, the greater the margin.

Bringing the Two Worlds Together

There is a new business model bringing these two worlds together. The new market leaderthe Sleeping Giantis the records-management operation with a self-storage base, a focus on services, and a marketing strategy aligned with resources and capital. The model works best when the following exist:

• Multiple storefronts
• A marketing strategy
• A thoughtful service strategy
• A selling process supported by well-trained and motivated salespeople
• A selling method with measurement tools
• Sales management _An operating plan
• Effective business processes
• Internal controls

So, why is this business model the Sleeping Giant? We are witnessing the emergence of a new breed of operators. These owners and investors are building businesses that work simultaneously in both marketsselfstorage and commercial records management. This has never successfully been done to this extent. It can be executed now because of recurring revenue stream, technology, outsourced resources and availability of capital. When these two businesses are joined, they take on a totally new dimension. In this case, one plus one equals 10.

Regular columnist Cary McGovern, CRM, is the principal of FileMan Records Management, which offers full-service records-management assistance for commercial records storage startups, marketing assistance, and sales training in commercial records-management operations. For assistance in feasibility determination, operational implementation or marketing support, call 877.FILEMAN; e-mail [email protected]; www.fileman.com.

 

By Van Carlisle

In an increasingly competitive industry, selfstorage owners and operators strive to make the process of storing goods as easy and convenient as possible for customers. Unfortunately, this convenience often accommodates the legitimate consumer as well as the criminal. For tenants, self-storage provides easy access to furniture, archives, appliances and other goods. From the criminal perspective, storage units offer expedient access to valuables.

As facility owners and managers well know, self-storage is not just about providing extra space. Tenants want to know who, or what, is keeping eye over their possessions. Nothing can outright prevent all incidents of theft and vandalism; but a major deterrent is a network of closed circuit television (CCTV) cameras designed to monitor a facility. CCTV is not only necessary from a security standpoint, it serves as a way to investigate accidents on the property and discourage employee theft.

A Bit of Background

Although surveillance-camera use dates back to the 1950s, cameras first became widely used in commercial security applications in the early 1970s. They have been steadily expanding in use since. After 9/11, every element of the security industry has intensified, and CCTV has been one of the leading categories in terms of growth. Much of the research and development and many of the product advances for CCTV come from Asia, where low wages and expertise in electronics create a very competitive environment with a constant flow of new products and features.

Since the 1980s, the most commonly used surveillance setup includes time-lapse video recorders that allow the compression of many hours of recording time onto a single videotape. These days, the video-security industry is evolving from the use of analog videotape to fully digital recordings. VHS video recorders are becoming obsolete in a security context, and for good reason. Tapes are costly, inefficient to store, and wear out relatively fast. Picture clarity is not the best. Also, better integrated systems are a driving trend.

According to security-industry consultant Joseph P. Freeman, organizations are merging their security electronics into centralized controls, and systems are being merged into integrated information-technology networks. As Freeman explains, this is all part of the effort to reduce headcounts and organizational cost structures.

The Age of Digital Video

So what does this mean for self-storage operators? Many of you have disposed of your home VCRs in favor of a DVD player. Similarly, if you are still using a time-lapse videotape recording system, now is a good time to evaluate and upgrade your current CCTV setup.

First introduced in the 1980s, the digital video recorder offers features unavailable to videotape users, such as advanced search capabilities. Other advantages of digital recording over videotape are: better system flexibility, extended record times, better image quality (allowing viewers to identify a suspect), future expansion ability, and a large capacity for data storage and reproduction. One of the greatest benefits of digital video is it eliminates hours of pouring over VCR tapes looking for particular incidents.

Digital CCTV technology also allows for the monitoring of multiple facilities from a single location via telephone, wireless technologies and the Internet. Systems that allow computer-based access are referred to as IPbased CCTV. This option is popular among absentee owners who like to keep tabs on their operation anytime from anywhere. This type of system can be integrated with other security features, such as point-of-sale, EAS (electronic article surveillance) alarms, access control and even robbery buttons to ensure important images are properly captured and stored. A security consultant or vendor can help you determine if this solution is right for your operation.

Finally, police love digital CCTV because it allows them to begin an investigation immediately without having to wait for a lab to process images. More law-enforcement agencies are using digital recording as criminal evidence. In one case, suspicious activity noticed at a storage unit led police to $1.2 million in cocaine that was stored inside. Because digital CCTV produces high-quality video, law enforcement has approached facility operators when problems occur in their areas, hoping to get leads from external cameras.

Ask your security vendor to provide you a return-on-investment study for digital CCTV implementation. In most cases, installation of a digital, IP-based, video-surveillance system earns back every bit of its cost.

Van Carlisle is president and CEO of FKI Security Group, a premier security and loss-prevention company, where he has worked since 1975. Mr. Carlisle studied criminal justice at the University of Louisville and served six years in the Air National Guard Security Police Force. For more information, call 800.457.2424; e-mail [email protected]; visit www.fkisecuritygroup.com.

By Steve Cooper

As the hovercraft slowly descends, the signal from its Little Black Box ID transmitter triggers an acknowledgement and authorization to enter. The bay door slides open. The vehicle settles silently on the docking pad. As soon as the drivers lift door opens, the facial recognition scanner instantly compares the drivers face to those in its database of stored images. The speaker announces softly, Welcome to Center City Personal Closet.

As the visitor presses the call button, the fingerprint-sensitive device confirms his identity. The Security Master Software quickly and automatically matches his vehicle ID, facial scan and button input. He is told, Supplies and refreshments are in the self-service room through the doorway to your left, should you need them.

This 20-story tower, a 22nd-Century marvel of pneumatics and hydraulics, features four multistory, conveyor-like lifts. The announcement sounds: Your personal closet will be available momentarily. The column-four lift whirs into action, revealing the key convenience feature of the worlds newest model self-storage store. Back in the home office of Global Storage, the monitor shows the activity as the lift delivers Bin # 4357 to the loading level. The door opens automatically.

Who knows what the future might bring to the self-storage industry? You have the opportunity to dream up your ideal storage solution. Whatever the vision, it will contain aspects of security.

As we move toward that future, security technology advances to meet the need. Already, biometric ID devices of one type or another are beginning to appear more frequently in high-security areas of upscale storage stores. Centralized management and monitoring across broadband connections is opening the way to efficient customer service in what is called a hub and spoke operation, with several stores operated from a single office. Regardless of how your future storage store looks or operates, following are some security principles you will need to consider. Some operators need to rethink them in the present.

Facility Design

Start with the design of your store. Consult your architect or engineer, or search the Internet on the keywords crime prevention through environmental design. Youll find design principles that allow you to create a safer facility and help your business fit more seamlessly into your neighborhood. Among other things, you will understand the need for sight lines, which allow you to see activities from inside and outside a facility.

David Michael Davenport is a Florida based architect with many years of experience in designing self-storage, especially in East Coast urban areas. With the cost of land continuing to climb, were finding smaller pieces of property that can be developed with multistory buildings to be the trend, he says. One of the ways we maximize the use of the property is to reduce the amount of paving by moving all the units to the interior. Not only do we optimize the footprint, but it provides much greater security, especially in some of the urban neighborhoods. He cites as an example several developments with all parking underneath, on the first level, and 90 percent of the storage above grade.

Competition is getting fierce in some areas, Davenport says, so we design for a place that looks nice inside and out, and make a place for a prominent security display in the office as a prime selling feature. And, in many neighborhoods, we continue to include an on-site apartment for managers. Tenants know theres a criminal element out there. Theyre concerned about it; and having someone on site 24 hours a day makes them more comfortable.

Harden the Target

Security experts talk about hardening the target, simply by making crime not pay. This is accomplished by increasing the difficulty of criminal activity and increasing the likelihood it will be noticed immediately. Theres no question that when a store has strong deterrents, anyone planning a theft will just move on to the next target, the competition down the street, says Tom Litton of California based Litton Property Management Inc., a veteran self-storage management consultant.

Anne Ballard, one of Littons counterparts and a partner in Atlanta-based Universal Management Co., suggests, In todays environment, you really must know who your customers are. Absolute and proper identification, addresses and active telephone numbers are a minimum. The better service you provide in getting to know customers and prospects, the more secure your operation will be.

The fundamentals will always apply, but the exciting new technology, designed to keep pace with development trends in the industry, makes it easier than ever to employ security tools. Theres no questioning the fact that security is one of the primary selling features in a self-storage store, says Davenport. In urban, suburban and even many rural areas, if theres competition, the store with the security features will have an advantage.

One trend for the future includes segmenting the marketing mix with a high security area for specialized storage. Minor Scotts Lodo Self Storage in Denver features a room so well controlled it qualifies to store museum-quality paintings. George McCords Plantation Self Storage in South Carolina features wine storage with its additional security features.

In [high security] situations, we have biometric devices like fingerprint readers that add a sophisticated layer of security, says Rick Stumpf, West-Coast sales representative for Digitech International, a self-storage security supplier. Coupled with wireless alarm transmitters for each unit door, these can help owners achieve a very high level of security, which absolutely makes the right impression on prospects and gives tenants the warm, fuzzy feeling their particular property is better protected.

Wireless devices have been used in the industry for several years. New application of discrete technology has improved the efficiency and convenience of their use in the self-storage environment. Its amazing, exclaims Alan Floren, president of High Security Alarm Systems Inc. in Orlando, Fla. We just had a crew install wireless transmitters for more than 700 individual unit doors in less than three days. Compared to the installation cycle for hard-wired door alarms, were way ahead; and this owner will be renting spaces a whole lot faster.

Hub and Spoke

New technology that leverages the power of the Internet is helping some owners consider a trend toward the hub and spoke arrangement of stores. A central office, connected through broad-band data devices on the web, can effectively manage a collection of smaller stores scattered throughout a market area.

We can easily make connections to give the central office complete control of gates and other access-control devices, lights, and more, says Mike Mead of Dallas Automatic Gates, an experienced security-system installer. With digital video recorders and the right kind of cameras in the right places, the central office can be monitoring activity on a real-time, full-time basis. We can also easily integrate intercom call stations to the telephone so tenants who need to communicate with managers have a way to do that, even from remote sites. We havent seen a situation yet where we havent been able to match new technology to give the level of security and control owners need.

Being able to have cameras feeding over the web and having remote integrated systems should open up some of the more marginal markets to larger companies, says Paul Darden of Dallas-based Darden Properties. Adding a few tools, like remotely controlled pan-tilt-zoom cameras, will help operators maintain tight control over their properties.

Moving Forward

Improvements in technology help us do a better job; but the truth is, the basics stay the same, says Jon Loftin, Digitechs vice president and systems engineer. You want to make sure you have absolute access control, alarms to signal exceptions, video surveillance to keep a record of activities, contact with your customers via intercoms, and good sound systems.

Helping to develop new ways for store owners to protect their property and make operations more efficient keeps us right where we want to beon the leading edge, says Jim DelSordo, president of Automated Security Corp., which serves eastern Pennsylvania and parts of New Jersey and New York. Keeping up with new technology is the fun part of our business, and it helps us partner with owners to make each store better.

Self-storage design and methodology will continue to evolve to meet what is rapidly becoming a more mainstream customer demand in our global society. Security tools now in the brainstorming stage of development will be available to support the needs owners have for property protection, insurability and risk management. Wherever your hovercraft and imagination take you in the creative development of your storage business, the security providers in the industry will be there to help.

Steve Cooper is part of the marketing team at Digitech International, the provider of World Class Security Solutions. He can be reached at 800.523.9504 or via e-mail at [email protected]. For more information, visit www.digitech-intl.com.

---

Security Pointers From SpaceAge Storage

SpaceAge Storage in Marietta, Ga., uses the latest in industry technology to serve customers, including a selfservice rental device that works much like a typical ATM machine. This new tool, intended to increase customer convenience, features connections to management software for rentals, credit-card processing for payments, a voice line for real-time communication, and video connections for visual monitoring.

But while conveniences are a nice addition to the facilitys offerings, it still employs basic security measures at the forefront of customer service:

1. Computerized gate codes are a must for entry and exit of the property. It is also important to keep the gate closed at all times of the day. Too many facilities keep the gate open during business hours to reduce wear and tear on the gate operator. By doing this, the owner is sending a clear signal to consumers that he is soft on ingress/egress security and an open target for anyone to enter the site.
2. Digital cameras and recording are critical in providing property surveillance. Customers, especially the female customer base, now expect them. These give the customer a higher comfort level and peace of mind to visit the property later at night.
3. Security zones are a must for property security in larger stores. Keypad-controlled entry to climate-controlled buildings offers added security and is a great selling point.
4. Proper lighting is critical, particularly around the office, gate, drive aisles, drive-up units and hallways. Lights can be set on sensors or timers. More light provided outside and within the property attracts more female customers. Light clearly provides greater security.
5. Established gate hours are critical in decreasing break-ins and vandalism and providing added consumer safety. Extended hours can be offered on an as-needed basis.
6. The free disk lock promo has proven to be highly successful in preventing break-ins, plus it is a low-cost marketing special that works. The cost is reasonable, and the returns can be been great.

Summer is here and, as a self-storage operator, you should be enjoying some of your best months of the year. This is the season when our residential customers are the most prolific.

This summer, in Ireland, Italy, Spain, the United Kingdom and other countries, business could be as blistering as ever due to the potentially overheated housing market. How long will the United Kingdom’s annual, double-digit growth in housing prices continue? Just where will it end? Will the boom persist, or is the bust around the corner? Dare I predict what even economists cannot agree on?

In the United Kingdom and Europe, the majority of self-storage customers are residential. House movers probably account for 50 percent of the entire market; and outside London and major European cities, the “lifestyle” customer is pretty much nonexistent. If half of the U.K. self-storage marketplace is those moving from home to home, it’s scary to think people are getting nervous about over-inflated property values. The average European is heavily in debt; and why not? Debt is cheap at the moment. Interest rates are low, but for how much longer?

There is a huge external influence about to unbalance the finely weighted scales of Europe’s interest rates and debt burden: a China crisis. The sleeping dragon has risen from its slumber and my, oh, my, is it hungry! It’s hungry for steel, oil, coal—it’s even hungry for Manchester United.

In fact, it’s not just hungry, it’s starving; and the only food available to curb its insatiable appetite is our raw materials. Because China is consuming everything it can get its jaws around, it’s driving prices up—not just a little but a lot. It needs 20 percent of the world’s steel supply; so the price of steel has already gone up 20 percent this year, with every other commodity in hot pursuit.

Such huge, raw price increases cannot fail to have an impact on the low-inflation Euro economy; and, like any aggressive competitor in a new marketplace, China will continue to buy market share. It has a competitive advantage in cheap labor. But until it reaches a satisfactory market share—probably at the same time its labor force demands more money—the rest of us are going to suffer.

Our biggest pain will be in the area of interest rates. Predictions made at the beginning of the year for a 1 percent increase by year end will soon change to 2 percent and possibly higher. This could lead to a crash in the housing market, which will affect 50 percent of our self-storage customer base. If housing goes back to the early ‘90s-style recession, next year could be a stinker for our residential market. I hope my prediction is wrong, for all of our sakes.

Andrew Donaldson is the founder and chief executive of Active Supply & Design (CDM) Ltd., a European fit-out contractor. He has set up and sold a multi-site chain of facilities in the United Kingdom under the name Rent-A-Space Ltd. His most recent facility, Storage World, in Manchester, England, has more than 100,000 square feet of rentable space. Mr. Donaldson is also the founder of the Self-Storage Sentinel newsletter and www.askactive.com. For more information, e-mail [email protected].