A stronger market for reused warehouse fixtures

September 26. 2011 12:34PM

A stronger market for reused warehouse fixtures

Richard Press, President, James Benton,Vice President, Linda Ackerly- Pagano, Office Manager, Thomas Hoff, Sales Manager, all of Always Equipment.

Always Equipment buys and sells used warehouse fixtures — the steel racking systems where pallets of goods are stored and moved around on forklifts. The company also designs and installs those racks, and the difficult economy means AE is getting orders from companies trying to save cash by using their warehouse space efficiently.

"In these trying times, we find ourselves in a good niche," said AE President Richard Press. "We buy equipment when warehouses are closing, and then when we sell that equipment, we can modify it to fit a new warehouse — whether it be shorter, taller or wider."

In good times, companies buy new warehouse racks, but now they're shopping for used equipment that's less expensive, he said: "We have (used equipment) in stock, so they can get it quicker from us than if they order it from a manufacturer." He said AE recycles steel racking "that would have gone into a scrap yard."

But like its customers, AE has been hurt by the recession, Press said. The company expects revenue of about $6 million this year, compared to the pre-recession $10 million-a-year level, and the work force has declined from about 15 at the peak to eight people today.

Four years ago, the 26-year-old company moved from the Sewaren section of Mantua to Raritan Center, a major commercial and industrial venue in Edison. AE's 44,000-square-foot facility actually is a warehouse's warehouse, filled with used pallet racks, wire decking, steel shelves and forklift trucks.

The move to Edison has brought the company new business, said James B. Benton, vice president. Raritan Center is a major warehouse location, and "we get customers that just see our sign and then drive in."

Press said AE's clients include Johnson & Johnson, Macy's, Barnes & Noble and Duane Reade, among others. AE buys and sells warehouse equipment throughout the East Coast, but most of its business is in New Jersey, New York and Connecticut.

Benton said he's getting new business from companies moving into the area, which "may be from California or other places, and they want to come into the New York market."

The economy is uncertain, and that has been good for public warehouses, Press said. Companies that use a public warehouse, rather than open their own warehouse, have more flexibility to respond to the uncertain demand for their products; "we're getting a lot of business from public warehouses for that reason."