Riding the Waves of Material Handling Costs

In the ever-changing world of warehousing and logistics, staying current with industry trends can feel like a full-time job. Is steel on the rise again this month? How will the latest tariffs affect my warehouse expansion? Should I buy now or wait, and hope prices chill out? These are the kinds of questions we hear from clients all the time, and for good reason.

Forklifts, AGVs, conveyor systems, VLMs, and a well-thought-out racking layout aren’t just nice to have; they’re the backbone of any efficient operation. Add trained operators who know what they’re doing, and things run like a well-oiled machine. But the real challenge these days? The cost of acquiring and maintaining that equipment varies significantly. It’s like taking a three-pointer with the hoop moving side to side. Good luck.

Here are a few strategies we’re seeing smart companies use to keep things steady:

Plan large projects in stages

Jumping into a full-on warehouse upgrade might sound productive, but breaking it up often works better, especially given the current market conditions. Taking projects step by step and creating a future roadmap allows you to manage costs, reduce risk, and adjust if prices spike. It’s like winning a game with short passes. Not flashy, but it gets the job done and keeps your budget under wraps.

Explore financing options

Not everyone wants to drop a pile of cash on equipment upfront, and they don’t have to. We’re seeing more companies shift to leasing and financing. Whether it’s a $1 buyout, a fair market leasing option, or something more unique, there’s likely a setup that fits your needs. We’ve helped plenty of clients develop flexible and creative financing plans that don’t leave them tied up for cash the minute something else pops up.

Think long-term with automation

Automation isn’t just for showrooms. It’s practical, adjustable, and yes, it works. Whether it’s a VLM keeping parts in order or an AGV doing the same job day after day without complaint, automation handles repetitive tasks, reduces downtime, doesn’t need time off, and has ROI backing it up. Over time, it can make a real difference in cost and consistency.

Choose the right MHE partner

A good equipment partner isn’t just there for the sale. They should stick around, help you plan for the ups and downs, and jump in when you need backup. Kind of like a good reliever coming out of the bullpen. At Abel Womack, we help clients prepare for busy seasons, fill gaps with rentals, and utilize tools like iWarehouse to control fleet performance, manage operator certifications, and minimize avoidable damage. We don’t just show up for the coin toss – we stick with you through every down.

No one can say for sure where the market is headed next. With the right strategy, some flexibility, and an experienced partner who understands your operation, you’ll be ready for whatever comes next, even if it brings a higher price tag with it.