With capital investment in buildings, plant and machinery in decline due to continued economic uncertainty, organisations are adopting lower risk growth strategies, including the increasingly widespread use of temporary buildings to house both core and supporting business activities.
Spaciotempo managing director Mark Taylor, comments: British business faces a tough year and few companies are prepared to speculate to accumulate. At the same time, the need to quickly and cost-effectively capitalise on increased demand has never been more crucial.
Investing in new premises or permanently expanding existing facilities presents a risk which, in the current economic climate, most organisations are simply not prepared to take. Whilst understandable, this potentially inhibits their ability to take full advantage of any new business opportunities.
Although the outsourcing of non-core activities provides some of the same benefits, hiring a temporary building is increasingly recognised as a best of both worlds solution, providing extra buildings which can simply be given back if they are no longer needed and allowing businesses to retain full control over core business activities.
In many cases, the cost of renting a temporary building is also underwritten by an organisations customers, effectively making it a self-financing solution.