Personal storage has been a growing business over the last
10 years. The likes of Big Yellow, Access, Loknstore, Safestore and a plethora
of other smaller rivals have grown up to supplement local offerings. Of course,
this phenomenon simply augments the existing business requirement. This
is a demand driven not just by spare bits of office furniture, exhibition
materials and other detritus but also frequently by compliance with legislation
and regulatory need. It’s also feared by paranoia about customer service and
risk. We’re talking filing and paper records here – mountains and mountains of
it. For many knowledge based businesses keeping records for 6 years and more is
just part of day to day operations. For accountants, lawyers, architects,
brokers and others there will be paper records which go back for years.
At a time when cash flow is king then it’s just one more
piece of aggravation and cost to find that off-site storage will be on the
rise. At least that’s what will happen if the Budget announcement to close a
loophole which exempts storage from VAT becomes law on 1st October
as planned. Forecasters are already projecting a drop in profits for the big
storage outlets. If you have your archives off site then be prepared to pay
twice from October – the VAT you can reclaim back of course, but the underlying
storage price is also likely to nudge north a little as the suppliers seek to
claw back the revenues lost from the personal market.
None of this is an issue for those businesses with the
foresight to take on board suitable systems. Document and content management is
a core requirement for the professional firm nowadays. It’s not just the
tangible enhancement in everyday efficiency, the client service improvements
and the peace of mind. They know that they are in good shape when it comes to
statutory and regulatory compliance. They get clear competitive advantage.
Their firms run better and their costs are reduced. And in October they’ll see
just one more advantage accrue.
