The global supply chain is facing a surprising but critical problem – we’re running out of warehouse space. The warehouses we have are filled to capacity, and with demand so high, prices have gone through the roof.
More Covid problems
All of this stems back to the pandemic. With Covid-19 keeping everyone at home, there was a surge of online shopping, but with shipping ports closed and factories shut down, the impact on the global supply chain was dramatic.
Transportation bottlenecks started to appear, with goods containers sitting on cargo ships, unable to offload. Now things are starting to get back to normal, all those containers are finally arriving, filling up warehouses around the world.
The price of warehousing
With demand for warehouse space so high, it’s no surprise that the cost has also risen.
According to Savills, one of the world’s oldest and leading property agents, warehouse property costs increased 8.4% on average globally, with London being the most expensive place in the world per square foot.
The flip side of the coin is shipping costs have come down, although not to pre-covid levels.
Shipping a 20-foot container from China to New Zealand now costs about 5 -6 thousand USD (NZ$8,315) compared to $12 – 15 thousand at the peak of the pandemic. Although those figures are still way above the $800 pre-Covid-19 price.
What to do if you run out of warehouse space
If you find you’re running out of warehouse space, don’t panic, there are still things you can do to increase warehouse capacity.
It’s surprising how much more space you can add to a warehouse by simply making your aisles a little narrower. Narrow aisle pallet racking gets the most out of your warehouse capacity by compacting your products, freeing up more room for extra racking.
Versatile cantilever racking is excellent for long or heavy loads such as pipes or timber, and items of varying lengths. This racking is highly customisable and allows easy access to products regardless of their shape and size.
Designed for excellent storage capacity, this system uses floor space efficiently by storing pallets 2-deep, reducing the number of access aisles needed, meaning forklifts have less distance to travel.
Add a mezzanine level
High ceilings in warehouses are an untapped goldmine of available space. Installing a raised storage platform, over the top of your current operations is a more cost-effective option than extending the current floor area and a whole lot less disruptive.
Redesign the warehouse
A more drastic way to find extra space is to reorganise the whole warehouse with a new layout. Starting from scratch is a good way to carefully design a warehouse to achieve optimum efficiency, especially if your industry has changed since it was first built.
We can help you find more warehouse space
Moving to a bigger, more expensive warehouse isn’t always an option, so creating more space with what you already have is the next best thing.
We can help you design and build a storage system that will increase both your capacity and product flow while adhering to local council compliance.
If you want narrow aisles, we can dismantle your entire pallet racking, design a new layout, and reassemble it again for you.
If you need more pallet racking, we have a large amount of secondhand stock that might suit your needs, all at a fraction of the cost of new racking.
If you’re looking for outstanding service, professional installation, and experienced advice, then look no further than Pallet Racking Solutions.
Contact us today if you have any questions about making the most out of your warehouse space and our experts will be happy to offer free advice.
Pallet Racking Solutions designs, supplies and installs quality pallet racking and warehouse storage solutions, New Zealand wide. Follow our blog for the latest innovations, new tech, safety and compliance, case studies and in-depth explanations of our solutions.