Purchasing used racking can help reduce capital expenditure and it might be the smart way to go for some storage and handling applications. As with any type of used equipment purchase, care needs to be taken in order to increase the likelihood of a successful outcome.
From time to time, excellent used racks become available and these opportunities are worth considering when purchasing storage racks.
Some of the issues to consider when buying used racking are as follows. What are the potential savings? Do the potential savings justify the extra time and effort needed for due diligence? What are the risks involved and what steps might be taken to minimize risk and help ensure a successful rack installation?
Some of these issues are discussed below, with helpful suggestions to assist you when purchasing used racking.
One of the inherent risks of buying used racking lies in the fundamental reason that used racking is considered in the first place, i.e., a desire to reduce capital expenditure. This objective could sometimes result in the purchase of used racking which is less than desirable. To help reduce this risk, the following are a couple of suggestions.
First, know what the requirements are. It sounds simple, but determining the requirements may not be as simple as it seems. One approach to determining the requirements is to review the storage application(s), identify the needs and clarify the desired result.
Once the desired outcome has been clarified, the next step is to prepare performance criteria, by which the equipment will be evaluated. A set of performance criteria by which to evaluate the suitability of available equipment is helpful when buying used racking.
If the equipment does not adequately meet your requirements, it might be best to walk away. Obviously, there is no point in considering used racking which does not meet your needs. Some flexibility might be necessary, however focusing on meeting the real needs can help reduce the risk of acquiring racking which is not a good fit for the storage application(s).
For large projects, available used racking might only partially satisfy the project requirements. However, keep in mind that used racking can work well for large projects, particularly when the available used racks meet the general performance criteria, as well as more detailed design specifications.
In situations where used racking is acquired without a carefully thought-out plan, much work might be needed to sort out the mess that arrives at the receiving dock, thereby offsetting some of the savings realized from purchasing used equipment. As a general rule, know what is needed, and buy that.
Another risk is that of acquiring used racking which is in less-than-satisfactory condition. The condition of used racking can range from almost new to almost junk, and in this reality lies the need for due diligence. There is no substitute for being able to inspect the condition of used racking before buying it.
Some pre-qualification can help ensure that there is a high probability of a favourable outcome, before investing time to do site visit(s), which might be needed in order to make an assessment regarding the prior use and existing condition of the used racking.
If it sounds like a lot of work, it can be. Dealing with a reputable used racking vendor might help reduce some of the work involved. However, it is important to not assume anything. At the very least, keep in mind that it is still the responsibility of the purchaser to ask specific questions and request verification of information presented by the used racking vendor.
At times, excellent used racking become available. For example, a company might have purchased new racking a few years ago, and, because of business and operational changes, the equipment is no longer needed. This scenario offers an excellent opportunity to acquire used racking.
When purchasing used pallet racking, there is a possibility of acquiring too many different makes, which can lead to concerns about interchangeability. The best way to handle this issue is to decide at the outset to limit your purchase to one of the more popular makes of racking.
Also, note that when buying and installing used racking in Ontario, a PSR (Pre-Start Health and Safety Review) will be required before the equipment can be used. Of course, there is a cost to obtaining a PSR, and this cost should be taken into consideration when purchasing used racking. Generally, the cost of a racking PSR is not a deterrent to buying used racking, particularly if the racking project is carefully planned and implemented.
What about the bottom line; will the likely savings be large enough to justify the extra time and effort that might be needed in order to buy used racking? That depends on what is purchased, and some other factors. If the racking is in very good condition and the cost is about two-thirds the price of new racking, with savings in the thousands of dollars, chances are that the savings might be worth the extra time and effort. On the other hand, if the used racking is just a little better than junk, then the value might be questionable, regardless of the cost of acquisition.
When purchasing used racking, it helps to know the requirements, limit the search to one of the more popular makes and conduct appropriate due diligence related to prior use and the existing condition of the racking. Following some of the suggestions mentioned in this article, meaningful savings can be achieved by purchasing used racking.
Jack Jagernauth, P.Eng. is a project engineer with Rack Inspections Ontario, an engineering company providing services related to racking safety, racking inspections and PSRs. He may be reached at 905-847-3640 or jack@rackinspectionsontario.ca, or through the company website: www.rackinspectionsontario.ca.