How Tariffs and Steel Prices Affect Racking Costs
Steel is the backbone of pallet racking, and fluctuations in global steel prices and tariffs have a direct impact on your bottom line. In recent years, increased tariffs on imported steel have led to higher raw material costs, which ripple through the supply chain and affect the price of finished racking systems. When tariffs rise, domestic steel prices often follow suit due to reduced competition. This means even racking made in the USA can become more expensive.
Planning a warehouse buildout or racking upgrade during periods of volatility can be tricky. The best approach is to stay informed, work with suppliers who communicate transparently about price changes, and, when possible, lock in pricing with quotes or purchase agreements. It may also be worth considering used racking during high-tariff periods, as it offers an immediate and often more affordable alternative. Either way, Material Handling Exchange has you covered!