Don’t Forget Operating Costs When Evaluating the Price of Storage Racking
Posted on Apr 3, 2025
When Modern Materials Handling asked material handling and fulfillment professionals about the top considerations in selecting a warehouse storage system, total cost of ownership ranked second – behind durability and uptime. The two go hand in hand, because a more durable racking system will hold up better over its lifetime, reducing maintenance and repair costs.
A storage structure will have a determined price that usually includes the design consultation, engineering, manufacturing costs, shipping and installation. But as any distribution or fulfillment center operator knows, there are ongoing costs once the system is put into use. You can expect higher ongoing costs with storage warehouse racking made from lower-grade steel, with less rigid design, and with construction techniques – such as welding – that do not provide the highest level of strength.
So, while you might initially pay less for low-quality, insufficiently designed storage warehouse racking, the costs over the lifespan of the structure will be greater. (See a related-topic whitepaper on this very topic.)
Obtaining the lowest total cost of ownership starts with the needs consultation process, which is done in coordination with a dealer, systems integrator or manufacturer. Work with a vendor that is experienced in the type of warehouse storage system you need. This first step is important in determining a rack structure that will meet current and future material handling needs, that is designed to withstand seismic events, and how the structure should be fitted into an existing or planned facility.
The Rack Structure
The composition of the warehouse storage racking, including the quality of the steel, is important in creating a structure that will be more durable. This starts with the use of American-made steel that is mill-certified regarding the steel’s iron and carbon formula. Imported steel does not carry the same certification, and can be made with a steel formula that results in inferior capacity and durability.
Racking components are made from either hot-rolled (structural) or cold-formed, with structural steel used when greater capacities are needed. But how those components are formed makes a difference in durability and, thus, long-term performance and reduced operating costs. While many manufacturers use open-back components for columns and beams, Steel King uses only closed-tube pieces. Studies have shown that the use of closed-tube steel increases front impact strength by 250 percent and side impact strength by 68 percent. That means that when a forklift or other vehicle impacts the structure, it’s much less likely to cause costly damage.
How the components are put together is another factor reducing total cost of ownership. This includes the amount of bracing, which affects capacity and impact resistance, and the welding method. Frames are only as impact resistant as the welds that hold them. Steel King products have a greater weld surface, providing greater strength than frames whose components are spot-welded.
Protect Your Structure
Even when the best materials and construction methods are used, damage can occur from routine day-to-day operations. When the storage structure is being planned, an experienced dealer or systems integrator can advise on the installation of accessories to protect the structure at key locations – where impacts are most likely to occur. These components include oversized base plates, column reinforcements, post protectors, end-of-row guards and safety guard rail. Guard rails not only can avert impacts with the structure, but also protect workers and, thus, avoid medical costs.
Impact protection is especially important in industrial cold storage environments, where densities are usually greater, thus limiting forklift maneuverability and where frigid temperatures could affect forklift operators and other personnel.
If components of a racking structure are damaged, the capacity of the system could be reduced, thus negatively affecting the efficiency of the material handling system. Repairs can mean temporary loss of use of the storage space – another hit on productivity. And replacement parts – which should always be from the same manufacturer – will probably be more costly than what the piece cost as part of the entire structure.
Operating costs are an inevitable part of the total cost of ownership for racking systems. While certain expenses, like accidental damage from forklift impacts, may be difficult to predict, they are a reality that must be factored into your budgeting. When evaluating pallet racking or other warehouse storage systems, it’s essential to consider these ongoing costs in addition to the initial investment. To explore durable and cost-effective warehouse racking solutions designed to minimize long-term expenses, view Steel King’s product.