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.”