Chicago Pallet Rack Shelving

March 18, 2018

5 Reasons To Get That Outdated Stock Off Your Storage Racking

If you’re in charge of warehouse inventory, there’s a good chance that you like to see things in order. You take pride in knowing where absolutely every pallet is at every moment, and that once the call comes in for a product you know exactly where it is on your industrial storage racks.

But knowing where everything is at any given moment also means that you know where the problem pallets are. In almost every warehouse there are those pallets that simply shouldn’t be there anymore, the ones that hold items that a warehouse manager just doesn’t know what to do with. These pallets stick around while the inventory on dozens of other industrial racks come and go.

It’s these specific pallets that need to be dealt with, and the sooner you get them off your storage racking, the better. Here are some of the reasons you should just go ahead and move them along in your efforts of warehouse optimization, despite the extra effort it’s going to take.


It Frees Up Physical Space

The primary reason to get rid of old pallets of unusable materials is so that you’re freeing up physical real estate within your warehouse. That pallet taking up space on your industrial shelving unit is going to get in the way eventually, no matter how far away you’ve tucked them in the back. Once you fill up your warehouse to the brim, it’s time to look into a new warehouse racking system…but there’s no reason to do so if you are keeping stuff you simply don’t need. Did you find a pallet of flyers from the last trade show? Don’t give it a second thought before recycling them. Have a pallet of paperwork that’s just a fire hazard now? It’s worth the few bucks to get them shredded and out of your warehouse.

Sure, it’s possible that you don’t need every inch of your warehouse space today. But when you do have a huge influx of inventory, wouldn’t you rather see an empty space in your pallet rack shelving than to have to deal with the problem when the new inventory is on its way? Which brings us to the following point…


It Frees Up Mental Real Estate

It’s not just physical real estate that you have to deal with when it comes to old inventory on your pallet racking system. It’s also the mental real estate that it takes. If you’re in charge of the warehouse inventory, you are likely always running into the outdated products and thinking “I really should do something about that.” A month passes, and dozens (if not hundreds) of storage racks are used over and over, and you still see that unmoving inventory and think “I really, really should do something about that.”

After a while, keeping something around for long past its purpose starts to feel like a failure. It didn’t sell, and it’s being ignored (but stays in the back of your mind) month after month. It’s best to just move it along in some way so that you never have to think of it again.

How can you move it along? Sell it! “But it hasn’t sold in all this time,” you might say. “I’d love to sell it, but it just won’t go.” Well…


It Could Get Some Cash

It might be time to cut your losses. Sure, it hurts to sell something for pennies on the dollar, but sometimes it’s just worth it to free up the physical and mental space that the unsellable pallets are taking up. In today’s world of internet sales and easy pallet shipping, finding a buyer for just about anything shouldn’t be a problem. It’s better to sell it for cheap now than to have it forced outside when you need every available industrial shelf for new product; a single rain could turn your product into trash.

The toughest part of selling it might be getting someone else to sign off on it. While you might want it gone, it might be difficult to get someone who doesn’t work in the warehouse to agree to let something go: “It might sell someday” they say. But bug them enough times and we bet they’ll cave, giving you that space back in the warehouse.


Tax Write Off

We’re no tax experts, but we know that keeping product around that isn’t moving can be a tax liability. But when you get rid of it, it could become a tax write off. You’ll get some credit for it if you give it away or pitch it, and you’ll also be freeing up warehouse space.


It Could Be Dangerous

Sometimes it can be difficult writing these articles to speak to everyone who might be reading them. After all, while some customers are using our industrial pallet rack shelving to store stuffed animals, others are using them to store antifreeze. It’s great that our storage racking is so flexible in terms of what they can be used for, but we’re certainly not going to suggest that one of our customers should get rid of that pallet of stuffed animals for environmental concerns.

But if there is something that could be potentially dangerous, it’s best to get rid of it. And even if it’s not dangerous, there are other reasons to move it along. Maybe it could cause a big mess if it ever fell, or leaks could lead to slip and fall hazards. Why have anything around that could cause you problems in the future?


Make The Most of Your Industrial Storage Racks

The fact is, there aren’t many warehouses in the world that don’t have some skeletons sitting around, waiting to be swept away. It’s always a good idea to free up space whenever you can, and it’s better to do so during your next downtime instead of during an emergency situation. When you’ve gotten to the point where you’ve gotten rid of your unneeded product and still need some space, Dak Equipment and Engineering will help you get your next warehouse management system up and running. Contact us right here to get the process started.



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March 14, 2018

Why Buying Pallet Rack Shelving NOW Could Save You Considerable Money

Steel prices are going up. While the price of most goods is determined by supply and demand, recent mine closures and increased tariffs on steel imports are raising the price of steel in the Midwest and throughout the country. If you don’t follow the price of steel, maybe you should; getting your industrial pallet racks now could save you quite a bit of money down the line.


Weekly Fluctuations Can Be Dealt With

Prices of raw commodities are always fluctuating. Crops, textiles, plastics, and, of course, metals are in a constant price flux. Unless a person is in the industry or has their eyes on investments, they might not realize that the price of steel is constantly fluctuating just like everything else. And to the average consumer, it’s not a big deal. When their greatest purchase of steel is a vehicle every few years, the price of steel isn’t affecting their lives much.

But when the products are steel, as is the case of industrial shelving, changes in prices can make their way through the manufacturing process and bump prices. Normally the change in price is small, and small changes in the price of raw materials don’t tend to affect the price of finished products. In the case of industrial pallet racks, minor changes will simply be absorbed by the manufacturers; a dollar rise in CWT (hundredweight) will be offset by the dollar fall next week. Changing the prices of finished products just isn’t viable on a weekly basis, and in the end it tends to even out.


Constantly Rising Prices Are A Problem

The problem now is that the fluctuations that are occurring are only heading up. Just two and a half years ago the price of steel rolls was $18.50/CWT, an abnormally-low price that quickly corrected itself by mid-2016. Since the beginning of the year, the price of steel rolls has gone up nearly ten dollars, from $32.63/CWT to $41.78/CWT. This is the highest price since 2011, and is heading toward the insane prices that we saw in 2008. Such steep increases in steel prices aren’t something that manufacturers of industrial storage racking can ignore, and the price of the product goes up.


So Why The Increase?

There are two major reasons that the price is steel is going up, one global and one domestic.

First of all, the price of raw iron ore is going up, thanks largely to mine closures in India. When that cheap ore became less plentiful, India raised its prices, and this created a ripple effect through the industry. Every ore supplier, both those internationally those in our own country, have raised prices accordingly. In the end, ore prices are up drastically since January.

The domestic reason is the increase in tariffs on steel that took effect March 23, 2018. These higher tariffs on steel from China and Japan will reduce the amount of steel available to the United States, almost certainly causing prices to rise further.


Are The Price Increases Over?

Steel prices have seen some steep increases so far this year, and most data indicates that it’s going to keep going up for the foreseeable future. While steel from some countries is still exempt from the greater tariffs — South Korea, the EU, Mexico, and Canada, for example — it’s still a possibility that tariffs will be raised on these steel imports as well, which would further cause the price of steel to increase.

Our suppliers are offering some of the steel pallet rack shelving they already have on hand at “pre-price increase” prices, but we don’t expect that to last long. In fact, but the time you read this there might have been a price increase, but by acting now you can avoid that higher price that seems inevitable as the cost of steel rises.


Get Your Industrial Shelves and Storage Racking Now!

If you’ve been considering a pallet rack system, now is the time to take the plunge before steel prices go up any more. We’ll get your industrial shelving ordered, install them with our professional team, and make sure that you’re making the most of your space. All it takes is a quick message to our consultants. Click here to get the process started!



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November 21, 2017

Advantages of Bolted Upright Pallet Racking

Bolted Frame Bracing

North American material handling professionals have pretty much always accepted that welded pallet rack uprights are superior to bolted while our colleagues in the rest of the world have been building their frames with nuts and bolts for decades. Which is best? Let’s find out.

Bolted BridgeBolted structures are everywhere in both our personal and professional lives. From the buildings we live or work in to the bridges we drive over and the mezzanines and cantilever systems we install in our warehouses. So why are welded frames preferred?

One of the big reasons is that almost every rack manufacturer in the U.S. produces only welded rack, so it’s easier to get than bolted and the manufacturers have a vested interest in maintaining the status quo.

With that said, bolted uprights do have several advantages over welded:

  • Less Expensive: While the manufacture of the major components is pretty much the same between welded and bolted uprights, welding adds more labor and thus more cost.
  • Easier to Repair: With bolted frames, you can replace just the damaged column or strut but welded frames require custom repairs or replacement. Additionally, a bolted connection is easy to see, test and replace where a weld covered by paint may or may not be structurally sound after an impact to the upright.
  • Cheaper to Ship: Welded frames take up as much room as needed on the truck while bolted can be shipped knocked-down and assembled at the destination. This can make the difference between one truck or two (or more).
  • More Flexible: If you need a custom height, welded rack can be cut down, but involves cutting out a horizontal and possibly a diagonal brace, cutting down the columns and then re-welding the bracing. There are also limitations on what’s possible. Customizing bolted uprights involves cutting down the columns and adjusting the bracing as the frame is assembled, which is a lot easier and as a result, cheaper too.
  • Better for Seismic Applications: Like the buildings and bridges mentioned above, bolted frames can flex and give when the earth moves, while welded structures are rigid and can break.

bolt and lock nutMany people who aren’t familiar with bolted uprights think that the bolts loosen over time and need to be tightened back down occasionally. As you can see to the right, our K3 Werks frames are assembled with a serrated lock nut and once tightened down prior to shipment or the installer if shipped knocked-down, they are locked in place.

As you may be aware, DAK Equipment only stocks equipment from RMI certified manufacturers so you can be confident that you’re getting racking that’s been tested and meets all the current standards, whether the uprights are bolted or welded.

So which is best, bolted or welded? Well, that depends on your preferences but we think you’ll agree, a lot of the misconceptions about bolted rack just aren’t true.

If you’d like to learn more about our K3 Werks bolted uprights or have questions this post didn’t answer, please feel free to get in touch.

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