When considering storage solutions for your warehouse or facility, cost is often a significant factor. Shelving is generally more affordable than pallet racking for two primary reasons:
- Material and Design: Shelving systems typically utilise slimmer components, reducing the amount of steel required. This decrease in material usage leads to lower production costs.
- Compliance Requirements: Unlike pallet racking, shelving is generally not considered part of the building structure under the Building Code. Consequently, compliance measures such as certification and council consent often don’t necessitate compliance, further reducing costs.
Factors Influencing Cost Differences
Several factors contribute to the cost disparity between shelving and pallet racking:
- Component Strength and Size: Pallet racking is designed to support heavier loads, requiring thicker and largermaterials, which increases production costs.
- Compliance and Certification: As mentioned, unlike shelving, pallet racking involves additional expenses for certification and consent.
To delve into the cost considerations of a pallet racking fitout, refer to our detailed breakdown: The Complete Cost Breakdown of a Pallet Racking Fitout.
Durability and Long-Term Costs
High-quality long-span shelving systems can have a lifespan comparable to pallet racking.
Features such as bolted (rather than welded) upright frames and high-quality powder-coated finishes enhance durability. However, shelving unit boards may deteriorate over time due to general wear and tear.
When evaluating long-term costs, consider space utilisation. In facilities with high ceilings, high-rise pallet racking can more effectively maximise storage capacity than shorter shelving, potentially reducing future relocation or expansion costs. Although shelving might have a lower price, you will need floor space to store the same amount of product, so the overall cost (including space) may be higher long-term.
Heavy-Duty Shelving vs. Pallet Racking Costs
Heavy-duty shelving often incorporates pallet racking components with added shelf boards and supports. Therefore, the cost difference between the two is typically minimal.
Choosing Between Shelving and Pallet Racking
The decision between shelving and pallet racking depends on several factors:
- Facility Height: For storage needs exceeding 4.2 meters, pallet racking or pallet racking shelving systems are more suitable, as standard shelving may not accommodate such heights.
- Loading Methods: Shelving is not designed for palletised goods. If your operations involve moving and storing items on pallets, pallet racking is appropriate.
Additional Costs for Pallet Racking
Pallet racking systems often entail extra costs related to certification and council consent.
As stated in AS4084:2023, annual independent inspections are mandatory, with monthly internal inspections recommended. Additionally, since pallet racking is typically loaded using heavy machinery, there is a higher likelihood of long-term damage than hand-loaded shelving systems.
For insights into improving the longevity and workplace safety of your facking, read our article: Protecting Your Investment: How to Increase Your Racking Longevity and Improve Workplace Safety.
Space Efficiency and Storage Capacity
Efficient space utilisation is a critical factor when comparing shelving and pallet racking. While shelving may offer a lower upfront cost, it typically requires wider aisles and lower height, which can significantly impact how much you can store within your available space.
For example:
The graph below illustrates the storage space required to achieve similar capacities when comparing 9-meter pallet racking to 3-meter high shelving.
It demonstrates that significantly more storage space can be utilised with 9-meter pallet racking in a 500 square meter facility. In contrast, a facility of 750 square meters is needed to achieve the same storage capacity with 3-meter high shelving. Why?
- Pallet racking is 3x taller so you need 1500sqm (500sqm x 3) to match the same capacity
- Shelving can be accessed using aisles that are approx. 50% smaller than pallet racking aisles. 1500sqm divided by 2 = 750sqm
Although shelving systems are one-third the height of pallet racking (requiring approximately three times the floor area to match volume), the tighter aisle spacing possible with shelving helps reduce this overall footprint. When adjusted for aisle width efficiency, shelving would require around 750 square meters to provide similar storage capacity to 500 square meters of 9-meter-high pallet racking.
This highlights that while shelving can appear more cost-effective at the outset, pallet racking may be the more efficient long-term solution for high-stud facilities due to its superior space utilisation.
Industries Benefiting from Shelving
Shelving is best suited for industries that prioritise speed, accessibility, and efficient stock rotation. Unlike pallet racking, which is optimised for bulk storage and machine handling, shelving supports high-SKU, fast-moving inventory that requires quick, manual picking.
Industries that benefit most include:
- E-commerce & Fulfillment: Businesses like Mighty Ape rely on shelving to organise thousands of SKUs, allowing for faster picking and packing.
- Retail & Consumer Goods: Companies such as Kmart use shelving in stockrooms to ensure rapid restocking of frequently purchased items.
- Publishing & Education: Scholastic Books and similar companies depend on shelving to efficiently sort and access large volumes of books.
For industries that need speed, organisation, and flexibility, shelving maximises efficiency while ensuring products remain easily accessible.
