Cost is a major factor to consider when installing a pallet racking system in your warehouse. However, there are too many variables directly affecting pallet racking costs. So, instead of some numbers that don’t effectively answer the question, we’ve put together this short guide that you can use to estimate your pallet racking cost yourself.
Factors Affecting the Cost of Pallet Racking System
Projecting the cost of the pallet racking system is a task and a half. You must account for multiple internal and external factors and consider your budget and storage needs.
Here’s a detailed overview of the 5 major factors affecting the pallet racking cost.
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Type of Pallet Racking
There are six major types of pallet racking systems. Each type provides an effective and efficient storage solution. Depending on which type you choose, the cost of pallet racking can vary between $70 and $600 per pallet positioning.
Let’s take a quick look at all the types and their estimated per-pallet positioning cost.
Selective Racking
Selective racking is the most common pallet racking system with a simpler design. It’s not the most space-efficient but provides easy accessibility, high versatility, and the lowest initial cost.
Due to the simpler design and build, selective racking is the most economical type of pallet racking. Selective pallet racking cost ranges from $75 to $200 per pallet positioning.
Drive-In Racking
Drive-in racking is a high-density storage solution that lets you drive the forklifts in and out of the racking structure for loading/unloading. However, this specialized system that maximizes storage space by storing pallets in multiple deep positions has a higher initial cost. You’ll have to pay $200 – $400 per pallet positioning to install a drive-in pallet racking system.
Push-Back Racking
Push-back racking is another high-density storage solution where pallets are loaded from the front and pushed back on inclined rails. This semi-automated system is pricey because of the complex inclined rail system. You will have to pay somewhere between $200 – $500 per pallet positioning. In return, you get higher operational efficiency which can save money in the long run.
Double Deep Racking
Double-deep racking improves space utilization and increases storage density by storing pallets two-deep. A straightforward structure is used in double-deep racking which is available for a low initial cost of $80 – $200 per pallet positioning. However, the operational cost is slightly higher because you’ll need deep-reach forklifts and other specialized equipment to handle inventory.
Pallet Flow Racking
Pallet flow racking uses gravity and inclined rails to create a semi-automated storage solution. Pallets are loaded at the higher end and unloaded at the lower end. This gravity-fed mechanism costs $200 – $600 per pallet positioning. That is higher than your conventional warehouse racking systems but you’ll save a lot in the long-term due to reduced labor costs.
Pallet Shuttle Racking
Pallet shuttle racking reduces the need for aisles and maximizes the use of available space by using moveable shuttles. However, this automated warehouse racking has a hefty price tag, mostly because of the shuttles. Pallet shuttle racking costs somewhere between $200 – $600 per pallet positioning.
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Size and Weight Capacity
Two major factors affecting the overall cost of a pallet racking system are its size and weight capacity. A taller pallet racking system will give you access to more vertical storage space. This will increase your material cost. Moreover, you’ll need stronger racks and uprights to store heavy items and goods.
So, a 12-foot pallet racking system that can hold up to 5,000 pounds per level will cost more than an 8-foot pallet racking system that only holds 2,000 pounds per level.
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Steel Quality
Pallet racking cost depends on the quality of steel you want to use in your warehouse racks. Low-grade steel has a lower upfront cost but it is inefficient. Because of the thicker beams and frames needed to achieve the desired weight capacity, you’ll use more material. On the other hand, Q235 steel offers excellent efficiency, plasticity, and toughness for a higher upfront cost.
The table below lists the standards and grade equivalents of Q235 steel used globally.
Region | Standard | Grade |
China | GB/T 700 | Q235A, Q235B, |
US | ASTM A283/A283M; ASTM A36/A36M | ASTM A283 Grade D; ASTM A36 Steel |
European Union | DIN EN 10025-2 | S235JR(1.0038) |
Britain (UK) | BS 970 Part 1; BS EN 10025-2 | 080A15; S235JR(1.0038) |
Japan | JIS G3101; JIS G3106 | SS400; SM400A |
Knowing these equivalencies will help you maintain quality and consistency and avoid mismatches when sourcing steel from international suppliers.
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Installation Charges
You should know how much it costs to install a pallet racking when calculating the total cost of a pallet racking system. If you do decide to hire professional pallet racking installers, you’ll need to consider their installation and equipment charges in your pallet racking cost estimate. These charges vary depending on the type of pallet racking.
Use this table to get a broad idea of the average pallet rack installation cost per pallet racking type below:
Pallet Racking Type | Pallet Racking Installation Cost (Per Pallet Position) |
Selective Racking | $50 – $75 |
Drive-In Racking | $75 – $100 |
Push Back Racking | $60 – $85 |
Double-Deep Racking | $70 – $90 |
Pallet Flow Racking | $80 – $120 |
Pallet Shuttle Racking | $90 – $130 |
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Extra Features and Accessories
The cost of pallet racking will increase if you install some extra features and accessories in the system. Here are some commonly used features and accessories that can enhance the overall performance of your pallet racking system:
- Guard Rails: Costing $50 to $100 per section, guard rails can protect your pallet racking from accidental forklift collisions.
- Wire Mesh Decking: Costing $20 to $50 per panel, a wire mesh decking prevents accidents and injuries caused by items falling through the warehouse pallet racks.
- Load Stops: Costing $10 to $25 each, load stops help keep the pallets within the racks.
- Label Holders: Costing $1 to $5 each, label holders can streamline inventory identification and management.
These are just a few common examples of the extra features and accessories that you can install along with your pallet racking system. OKE Storage offers custom-made pallet racking systems with all the extra features and accessories that you could ever need.
Tips to Reduce Pallet Racking Cost
- Buy a Used Pallet Racking System: You can considerably reduce your warehouse racking cost by installing a used pallet racking system. The cost of used pallet racking systems is 80% of the cost of a new pallet racking system. Moreover, used pallet racking is readily available for immediate installation. However, they come with their caveats and risks.
The biggest risk associated with used pallet racking systems is the compromised structural integrity. After years of usage, every pallet racking is bound to depreciate. That can pose serious safety risks in a warehouse.
- Consider DIY Installation: Installation charges make up 20 to 30% of the total pallet racking cost. You can save that money by installing the pallet racking system yourself. However, we only advise doing this if you have prior experience.
- Stick to Your Needs, Avoid Customization: A customized warehouse rack will cost more than a conventional one. Only add features to your pallet racking system that you need instead of choosing unnecessary features in the name of future-proofing.
- Find OKE Storage Supply: If you’re looking for cost-effective and efficient pallet racking systems, find OKE Storage Supply. The experienced team at OKE Storage can design and install the ideal pallet racking system for your storage needs.
Conclusion
Consider these factors and get a good estimate of how much pallet racking costs. You can also contact OKE Storage Supply to book an appointment and get a quick quote for a pallet racking system tailor-made for your needs.
FAQs
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How can I find the best pallet racking for my needs?
Here’s a list of things you need to consider when trying to determine your pallet racking storage requirements:
- Evaluate your inventory.
- Measure the warehouse space.
- Decide on storage density.
- Consider what storage method (LIFO, FIFO) you’ll use.
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What are the ongoing maintenance costs for pallet racking?
Regular maintenance of a pallet racking system includes paying for inspections, repairs, safety upgrades, insurance, and compliance checks. Inspection and repairs can cost somewhere between $100 to $300 per session. Compliance checks can cost up to $500 while insurance for pallet racking systems can cost as much as $2000 per year.
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Can I get tax incentives or rebates for purchasing pallet racking?
Depending on your area, you may be eligible for tax incentives and tax rebates for installing a pallet racking system. Section 179 of the IRS Tax Code allows businesses to deduct the full purchase price of qualifying equipment like a pallet racking system.