Budgeting Tips for the Metal Racks Your Need in Your Facility

In Shelving

Marlin Steel on July 30, 2020

IMG_7012Having the right equipment in your manufacturing facility can make all the difference when it comes to reducing downtime. Metal racks can be valuable assets for pharmaceutical manufacturing; depending on what they're needed for, metal rack shelving can be used to securely hold everything from delicate surgical tools to tableting press equipment parts. 

However, following a precise manufacturing budget is also an important component to a successful business. If your manufacturing facility is in need of metal racks, preparing an accurate budget is the first step with determining how many you can afford. 

Price Points for Various Types of Metal Racks

Wire Rack for Cell Therapy Manufacturing ApplicationThe price point for various types of metal racks will depend on the application of the rack and the type of metal being used. For pharmaceutical applications, metal racks need to have the structural integrity to withstand any demanding use, as well as be corrosion-resistant enough if coming into contact with caustic cleaning agents. 

When determining budget, the metal chosen will determine the price point. For instance, if the pharmaceutical parts being manufactured are delicate, the metal racks needed to position them may be steel covered in a soft polymer coat. Since most polymers have a soft surface, it cushions an impact rather than redirecting force back into the object. This allows it to lessen the chance of any scratching or other damage to delicate parts. Though the addition of coating, such as polymer, may increase the price point of steel rack shelving when compared to no coating at all, the soft cushioning polymer will ensure minimal product damage so money is saved in the long run.

How many metal racks you can afford will be determined by your budget. Some tips to include in your manufacturing budget include:

1. Research Previous Records

As you create your budget, look over your financial records from the year previously. It can show where your old budget fell short, or areas where money was over-allocated, so you can make more accurate predictions for this year. When reserving part of your budget for metal racks, see areas where money could be pulled into by looking from what was not spent on last year.

2. Don’t Forget Indirect Costs!

Leaving out indirect costs when determining your overhead will cause your manufacturing budget to be less accurate. For the most precise estimates, remember to include contingency costs just in case of future problems so you’ll have room in your budget.

3. Be Prepared for Adjustments

It’s highly likely that your budget will change throughout the year. Perhaps there are unexpected problems that cost more money, or you have more sales than you predicted. All these factors influence your budget, so be prepared to adjust it as the financial situation of your manufacturing facility changes.  

How to Fit the Metal Racks You Need Into Your Manufacturing Budget

When determining how metal racks will fit into your budget, the total cost of ownership (TCO) of any equipment should be a major factor in the purchase decision. The TCO is very different from the upfront cost of the metal racks and must be weighed against the value that the equipment will produce during its lifetime. 

Cheaper alternatives to metal racks, such as low-cost plastic, may appear more attractive budget-wise due to being less expensive. However, metal racks will usually have a much longer useful life than their plastic competitors— even outliving them several times longer!

Reserve a portion of your budget for the upfront costs if you determine the TCO to be greater in the long run. For example, perhaps your pharmaceutical company is looking for metal racks for positioning tablet press parts. While ordering a set of plastic racks would cost the company about $3,000 for tooling, materials, and delivery,  a set of steel wire racks would cost about $10,000 for a high-grade, corrosion-resistant stainless steel alloy.

Although the upfront cost of the metal rack shelving is more than three times the cost of the plastic alternative, how long would it outlast the plastic? If the lifespan of the steel racks is at least ten to fifteen years, while the plastic option needs replacement every few years, then the TCO of the plastic shelving would be greater than that of the metal racks.   

Explore Marlin Steel's Customizable and Budget-Friendly Metal Rack Options!

wire-rack-1130001Marlin Steel offers a wide variety of metal racks customizable for your own unique pharmaceutical manufacturing needs. The engineers at Marlin Steel design and manufacture metal rack shelving based on your requirements and can develop a durable product that is conducive to not only your facility, but also your budget. 

If you’re looking for a unique rack to fit the exact specification for your pharmaceutical applications, or interested in what metal racking options would be most friendly for your manufacturing budget, then reach out to Marlin Steel today!

Learn how to protect your products and budget by downloading our guide!

Author: Marlin Steel
Marlin Steel
Marlin Steel is a leading manufacturer of custom‐engineered products from steel wire and sheet metal. Its industrial material handling containers serve many industries including aerospace, defense, medical and automotive.

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