In a recent article released by the Wall Street Journal, warehouse space was showcased as being at its tightest since 2000. While this should come as no surprise that this issue of space is consistently growing, the rate at which warehouse vacancy is dwindling is far outpacing the increase in new construction.  In the second quarter of 2018 alone, industrial real estate availability fell to 7.2%. This creates in a unique predicament for those thriving and looking towards expansion, but also provides opportunities for those who can maximize their available footprint.

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Online sales will account for 17% of all U.S. retail sales by 2022, up from a projected 12.7% in 2017. As you might imagine, warehouses are suffering from a major capacity crunch. Whereas previously warehouses were organized to handle large volumes of each product, E-commerce orders are characterized by a low quantity of many items or just a singular item. In an e-commerce oriented warehouse, huge quantities of SKUs exist, each needing their own specific storage slots.

Warehouse managers know that inventory levels can fluctuate anytime within a sales season, especially during a holiday when inventory levels are typically at their peak, often double or triple normal levels. Plus, because of the Amazon-effect, consumers are demanding more products with faster and better service, putting additional strain on warehouse space. Because of this growth, many businesses are looking for additional space to distribute and store products, but warehouse real estate is hard to find.

What is a retailer to do? The answer for additional space can be found within the four walls of your current operation.

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We help clients with structural mezzanines and rack supported systems in a range of facilities.

Mezzanine options range from professionally manufactured to home-made to local fabrication shop to professional contractors. If you have a mezzanine or storage platform custom fabricated, you need to be sure your contractor is complying with OSHA & local safety regulations, particularly on guard railing, stairs and gates. If your fabricator doesn’t routinely work with mezzanines, this is something you’ll have to do on your own. The best policy is to look at established vendors if you don’t want to micro-manage the details of building permits, code compliance, and OSHA’s blessings. Here’s a breakdown of the handrail issues you might run into:

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You’re already paying rent, taxes and for utilities of the space in your facility. Even if nearby space is available and suitable, using a work platform to expand makes sense because all these costs are wired in—and don’t typically rise with a mezzanine installation. Use platforms and mezzanines to leverage your existing space for offices, production equipment, storage areas, manufacturing process, product/conveyor sorting and much more. It’s a fraction of the cost of new construction and delivers long term value. Mezzanines also offer significant tax depreciation advantages.

Guide to Mezzanines and Platforms

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There is no storage space as expensive as frozen storage space, which is why companies work hard to maximize storage in these facilities. One of the industry’s most innovative companies, Zero Mountain Cold Storage, decided to increase capacity at its Fort Smith, Arkansas location. The company called on Cisco-Eagle to help it plan and execute nearly 1,200 pallet positions in a combination of freezer and cooler storage areas.

Here is how Zero Mountain found its solution

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As a business grows, usually storage demands also increase, leaving you facing choices like storing goods off-site, relocating to larger facilities, or turning to a third party for warehousing or distribution – choices that increase overhead costs year over year. What if you could avoid those choices and increase available space in your existing storage by removing the aisles between the rows of racking and even shelving?

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I recently attended training on a crossover and work platform product that continues to impress me for its flexibility and innovative engineering. Because of its modular design, it stands out from fabricated and manufactured products because it can morph and change as your needs change. There are times where a fixed, welded platform is fine, but it has hidden costs. Let’s examine those…

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In any warehouse or distribution facility, there are two critical—and usually very limited—commodities: time and space.

Warehouses and DC’s are limited by these two constraints – you basically have your square footage, your people, and 24 hours in a day—or less, if you aren’t running three shifts. These constraints drive us to refine processes and optimize performance. Let’s discuss a type of equipment that can save time and slash the need for space: spiral conveyors.

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What specialized applications do you have for shelving? Cold storage capable? Biohazard resistant? Air flow through shelves? Fire sprinklers able to reach all levels? Bin storage and easy visibility of shelf contents? All these are great reasons to go with wire shelving, which can serve multiple purposes in a facility and is less likely to retain airborne dust and debris.

Let’s look at some of the wire shelving options available.

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In the past year I’ve toured manufacturing facilities that have office space right on the plant floor.  Those offices had been added as the company grew and needed more supervisors or engineers on the floor. They were using modular offices, of course. Later, I was fortunate to attend a training session on modular offices done by one of our suppliers, and it was amazing the forethought and engineering that goes into these modular buildings.

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