Costs escalate as demand exceeds supply

RENTAL RATES have gone through the roof, driven up by municipal rates, with lack of availability pushing up the cost of storage even further, says KZN-based industrial warehousing specialists, Lovemore Bros. “Municipal rates were increased in Durban by 21% and rentals are now running at R30 to R40 per square meter plus contribution to rates,” says Rob Lovemore. “Three years ago charge out storage rates were below R40/m2 and this is now the base cost.” Despite this, the company continues to enjoy strong growth year on year. “Availability is always a problem, but we have to make sure we are ready to handle whatever is thrown at us,” says Lovemore. The company recently took delivery of a mobile gantry with 250 ton capacity and installed a 10 ton crane in warehouse 5 to cater for the specialist bulky, heavy equipment, granite, steel coil, vessels and presses markets. “We are approaching capacity and are currently investigating a site to build a new facility.” Safety remains a strong area of focus for Lovemore. “In this game it's people people people, safety safety safety. Heavy, unwieldy equipment can catch you off-guard and do some serious damage. “It would be good if the energy of 2007 holds through 2008. Despite space constraints, our rigging division is holding steady and we have some big equipment on order which will come into service by August this year.”