Temporary structures key to ‘Celtic Phoenix’ during storage shortage

As Irish exporters struggle with a storage squeeze, which could see rental costs rise by as much as 20% over the next year due to a storage shortage, Spaciotempo believes that temporary buildings hold the key to helping exporters during the ‘Celtic Phoenix’ upturn.

Property broker Savills is warning of the increase in rental prices at a time when Ireland is being hit by demand for storage space far outweighing supply. Until now, businesses have been limited to two major alternatives; renting XXL warehousing space (a realistic option for large corporations, but out of reach for companies further down the scale) or built-to-suit warehousing, where landlords build warehouses to meet the requirements of renters – a time constraining option for businesses wishing to retain their competitive edge.

Temporary buildings offer a cost-effective storage solution

Temporary building specialist Spaciotempo, the only temporary buildings provider to have a physical presence in Ireland, is urging Irish exporters to consider the alternative of temporary warehousing and storage space; structures that can be installed and removed instantly, in line with demand. The company is citing temporary buildings as a cost-effective solution for a country whose warehousing space is at bursting point.

The success of the Irish export market has been attributed to a number of factors, including expansion into Europe and the US, a weakened Euro and – most significantly – Ireland’s corporate tax rate. At 12.5% it currently stands as one of the lowest rates in the world. As a result, the country is now home to nine of the world’s top 10 pharmaceutical companies.

Government figures show that exports to the US for food and beverage, meat and tobacco products rose by 51% in 2015. Ireland’s booming export market is contributing significantly to the economy, and rise of the ‘Celtic Phoenix.’ However, it is also providing businesses with a conundrum regarding storage space, thus putting landlords in control and leading to rent hikes.

Temporary warehousing can be a key enabler for growth

Speaking about the benefits of temporary industrial warehouses for Irish exporters, Managing Director of Spaciotempo, Scott Jameson commented: “The use of temporary warehousing can be a key enabler for growth in the export market. The increase in the export market that Ireland has witnessed in recent years is a real success story and great news for the Irish economy. But the current situation regarding warehouse solutions is now fast becoming critical.

“For Ireland to sustain growth it needs to consider alternative options; current models are not sustainable in the long term. Temporary warehousing solutions are both more cost-effective and quicker to install than permanent buildings, offering a viable and innovative alternative and putting control back in the hands of businesses.”

By using temporary structures, business are provided with an immediate solution and often for a lower capital cost than alternative options. Spaciotempo has already cemented strong links with Irish export businesses, having previously worked with The Tech Group and C&C Group, exporters of Bulmers cider. Spaciotempo’s temporary warehouse contributed significantly to the growth of C&C Group during the launch of its Magners brand, and enabled the business to meet a significant increase in demand for both production and warehouse space.

Temporary structures can be installed on demand

Scott concluded: “Temporary buildings can be just as durable and feature-rich as permanent options to support businesses with their storage needs. The facility we installed for Bulmers had a double skinned air-filled PVC polyester coated roof and UPVC wall panels to assist with insulation, as well as five electric roller shutter doors and mercury lights.

“The beauty of this option is that temporary buildings can be installed on demand and taken away when they are no longer required, making it a more cost-effective solution to XXL warehousing and rental schemes. As Ireland continues to grow through warehousing and exports, temporary structures could be the solution to its supply and demand problems.”

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