Pallet racking, again. Is the crash coming?

[newbury]

Back in 2012 I had scored a bunch of inexpensive pallet rack due to the economic downturn in 2009+ and started a thread,

In praise of CL and pallet racking.

Well I've finally gotten some storage set up for my warehouses at my retirement home. Discussed in http://www.tractorbynet.com/forums/projects/212437-rough-value-workshops-barns-ne.html Warehouses, left to right RV shed, sawmill shed, big warehouse, woodwork shop. My RV shed, with stuff...

www.tractorbynet.com

I built out my system and now I've got plenty.
But ever since it's been one of the things I scan for when I'm "bargain hunting".
And it's been fairly scarce as far as local ads on Facebook Marketplace (FM) and Craigs List.
But today I went into FM for just the "general browse" and there must have been 30 separate ads from different sellers for pallet racking and or parts popping up in my "filtered search", things in the last 7 days and within 60 miles of me. Now I know FM is a piece of crap with it's filtering, but it's the same way I've been filtering for a while, so this was a dramatic increase.
Last time I saw this much rack being offered was about 2013. Prices are still up there, but if there is a glut prices will come down.
I'm looking for $10 uprights and $5 beams
/edit in 2012 there were a lot of retail stores closing, and getting rid of their racks, I was able to get 1 upright, 6 beams (a section) for $10 in 1 closeout, and got 5 sections for $100.

 

[zzvyb6]

See that here, 12'ers. Many are older business owners who are retiring and the building(s) they own are in short supply for new ventures not needing racks.

 

[scootr]

I habitually scan CL and FB. I see many ads for lots of pallet racking, file or storage cabinets, desks and chairs. It looks to me like businesses are closing shop, liquidating. Not a surprise given the present economy

 

[D&D]

The ones I know getting out are because it’s retirement time and their kids didn’t want anything to do with the business. Valuating and selling a business is difficult in these times though.
On a little different note, many home sales here lately (500K+) are within a week and getting all cash offers. There is some money somewhere out there.

 

[mikester]

If you have a business and/or employees consider buying new certified racks for not much more than used. No dings, welds, twists, rust,...and reduces your liability

 

[newbury]

If you have a business and/or employees consider buying new certified racks for not much more than used. No dings, welds, twists, rust,...and reduces your liability

Agree, plus it's tax deductible. However, as I mentioned in my 2012 post.

Costs were about $120 per 9'x42" section (except for 10 sections I got for $100 total).

It's that type price (10 sections for $100) or free that keeps me looking. New retail seemed to usually be over $600 for 1@ 10' upright and 6@ 9' beams.

 

[2manyrocks]

New price of steel is expensive, but the last time I was in the junkyard about a month ago, the owner got a call telling him the price of used steel would be dropping the next week.

Another unofficial measure of the economy is whether the animal shelters are full, and the ones around me in middle Tennessee have had record intakes this summer.

 

[Jstpssng]

Another unofficial measure of the economy is whether the animal shelters are full, and the ones around me in middle Tennessee have had record intakes this summer.

Some of that may still be Covid related. A lot of people took in animals then, and are now realizing they are a full time responsibility.

 

[2manyrocks]

Shelter inflation ate up discretionary income to afford having pets in many instances, plus corporate landlords charge hefty pet deposits and charge a monthly rental fee per pet if pets are even allowed.

 

[5030]

Being a landlord, I can tell you the only thing more destructive on a rental property besides little kids and the crayons on the walls is a pet, especially a dog or cat peeing on carpeting or clawing woodwork. I do not allow any pets in my properties and I'd like to exclude little kids as well but I cannot. I can and do exclude pets. I actually had to evict a renter a while ago because it stipulates in my rental contracts, no pets and they decided to get a dog and they subsequently were evicted. I don't play that game. They weren't happy to which I replied, 'Did you bother to read the rental agreement'???

 

[5030]

I habitually scan CL and FB. I see many ads for lots of pallet racking, file or storage cabinets, desks and chairs. It looks to me like businesses are closing shop, liquidating. Not a surprise given the present economy

Given up on CL. It's mostly all scammers now and people looking for 'hook ups'.

 

[2manyrocks]

Being a landlord, I can tell you the only thing more destructive on a rental property besides little kids and the crayons on the walls is a pet, especially a dog or cat peeing on carpeting or clawing woodwork. I do not allow any pets in my properties and I'd like to exclude little kids as well but I cannot. I can and do exclude pets. I actually had to evict a renter a while ago because it stipulates in my rental contracts, no pets and they decided to get a dog and they subsequently were evicted. I don't play that game. They weren't happy to which I replied, 'Did you bother to read the rental agreement'???

Landlords have a legitimate interest in protecting their property from pet or people damage.

Because of all of the money printing to fund the unprecedented spending in recent years, young people who would otherwise be prime candidates to become home owners and pet adopters have been priced out of buying their own homes. So they rent instead and don't have nice fenced in backyards to have pets.

 

[Jstpssng]

I used to travel a lot for work and generally brought my dog. It sometimes was a challenge finding a motel which accepted them so when I checked in to a place for the first time I would tell them "if there's a problem I want to be the first to know about it." In 25 years there were 3 times that my dog had an accident. Each time I reported it after cleaning up, but never needed follow up action. I had more than one motel owner tell me that it's the people who "sneak their dog in" who generally are the problem. Then again I believe in being responsible for my pet at all times.

 

[2manyrocks]

The newbury pallet rack index has never once failed.

 

[5030]

Landlords have a legitimate interest in protecting their property from pet or people damage.

Because of all of the money printing to fund the unprecedented spending in recent years, young people who would otherwise be prime candidates to become home owners and pet adopters have been priced out of buying their own homes. So they rent instead and don't have nice fenced in backyards to have pets.

My renters would like nothing better than to buy the homes they rent from me. Problem is, they cannot afford to in today's inflated housing market and I would sell them but they would have to be a conventional mortgage with the customary 20% down payment and none of them have that kind of jack.

All of my rental properties have been appraised north of 225 grand.

 

[Jstpssng]

The newbury pallet rack index has never once failed.

That sounds about right. I was just thinking about moving more of my 401k into stocks. Had I chosen to do that it's guaranteed that the markets would crash.

 

[ponytug]

Used pallet racks here are 90% of new, despite many older designs no longer being permitted without certified plans signed off by a PE. (Earthquake safety.) I've seen auction sales recently where it was more than new.

Frankly, I don't get the lure of buying used, chipped, rust spotted racks at that sort of pricing, but it seems to happen...

All the best,

Peter