Businesses could consider hiring instead of buying while economic uncertainty remains over Brexit and premium rates on commercial premises stifle the market. That’s the advice from Scott Jameson, Managing Director of temporary building specialists, Spaciotempo.
Scott Jameson said ownership of assets may be more attractive in the long term, but hiring temporary buildings can be a better option for growing businesses while the UK’s economic growth remains uncertain.
His comments follow recent warnings by the Governor of the Bank of England that Brexit uncertainty is building. Mark Carney made the remarks as the bank voted to hold rates and cut growth forecasts, although, according to a recent report from the manufacturers’ association, EEF, some sectors are experiencing higher demand both here and abroad.
Spaciotempo offers the option of buying its temporary buildings or providing them for hire. Scott Jameson said that while there is such uncertainty, the latter might be the short term solution, especially for manufacturers that are looking to relocate to larger premises but have run out of capacity in their existing building. He said it may be the better choice for these expanding businesses or for ones that have strong seasonal peaks.
Scott commented: “For some businesses the answer may well be to look for a loan or mortgage to build something permanent or even buy a temporary structure from us. But for others that are expanding, particularly while the economic future is still unclear, they might consider hiring a temporary building instead.
“We offer both options to our customers, but where we believe a hire may be better at this moment, then we will say so. We also advise businesses that at some point in the future they can still have the option of buying the building, but while things are uncertain hiring may be the best solution. In times of uncertainty, it’s important that businesses have choice as well as flexibility, and with such a large asset as premises, it’s even more important that companies feel they have the room to breathe.”
With commercial and industrial space at a premium, coupled with the situation where it is becoming more scarce as larger manufacturers continue to reshore, as well as facing uncertain trading conditions, companies need to know there are cost-effective solutions that will not only help them weather the storm of Brexit, but will also help them to grow and expand without additional pressures. A temporary building is perfect for redevelopment or refurbishment and the benefits of hiring offers businesses numerous benefits, taking away the headaches usually experienced when dealing with one of the company’s biggest assets.