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Jracking Analyzes Fierce Compet... In Storage Racking Market

- Dec 16, 2017 -

Jracking Analyzes Fierce Competition in Storage Racking Market


As the main storage facility, Jracking storage racking systems play an important role in modern logistics. Well-designed, rational use of Jracking storage racking(including pallet rack, cantilever rack, electric mobile rack storage system, mezzanine and platform, shuttle car automatic storage system, push back rack, longspan shelving, rivet shelving, drive in rack, carton flow rack, stacking rack and other related storage equipment), is to achieve efficient, high-quality storage solutions for the premise. In recent years, the rapid growth of the logistics market to promote the growing demand for Jracking racking systems.

90s of last century, China's racking industry started. Development so far, the market size has been considerable. Statistics show that from 2009 to 2010, the storage shelves market annual growth rate remained above 28%. The output value of the whole industry in 2010 is about 2.8 billion ~ 3 billion CNY. In 2011, driven by the economic growth and the substantial increase in investment in the warehousing industry, the demand for the racking market grew rapidly with the output value exceeding 4 billion CNY. Broad market prospects for the development of the racking industry is the most powerful impetus, also attracted many market gold rush into the industry.

The strong market demand has led to the emergence of a large number of racking systems in the market, but the products are mixed. Increasingly fierce competition in the market, customers are more and more critical, the pressure on the shelf business is also growing. From the market point of view, the first is the need for automated logistics and warehousing systems increase year by year. The second is based on the need to increase the utilization of storage space and the increase of demand for intensive storage systems. Third, the scale of the shelf project is getting bigger and bigger. These new market characteristics, the product design, technology installation and management capabilities have posed new challenges. From the enterprise itself, the overall technical level is relatively backward, single product racking technology, homogeneity and strong. From the industry distribution point of view, the regional concentration is higher. In the domestic market, about 70% of the shelves produced in Nanjing(leaded by Jracking Storage Systems), 20% of the racking produced in Shanghai, 5% of the racking produced in Guangdong, the other 5% from Beijing, Tianjin and other parts of the racking industry and import racking system. This reflects the difference in regional market prosperity and the segmentation of markets caused by installation costs. Due to the relative lack of industry standards, traditional storage racking suppliers have low barriers to entry and low profits. Therefore, under the situation of gradual increase in labor costs, the market competitive environment is even more cruel.

Some experts put forward proposals: enhance the racking design and production process improvement. Constantly improve quality and technical level. Meet market demand, and constantly develop new products and new customer base. With the automation, integration, and informational logistics projects increasing, the racking manufacturer should enhance the logistics program design, construction and other soft power. Do a good job of the overall implementation and management of the racking system project. Strengthen the cooperation with system integrators; give full play to their own advantages in products, mutual benefit and common development.

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