Lease Warehouse Equipment to Save Money

Overhead costs of operating a warehouse are expensive. Forklifts, pallet rack systems, safety equipment, and employee wages and benefits all add up quickly. Purchasing all the necessary components outright will tie up valuable capital and incur higher taxes for assets. It will also limit capacity.

Lease payments are considered business expenses and are completely tax deductible. Depending on the size of the warehouse, this can make a substantial difference. The tax break will leave more capital available for improvements, marketing, or hiring new staff. Leasing prevents being stuck with a system that may fall short of expectations.


Leasing material handling equipment, such as pallet rack miami, industrial fans, mezzanines, and lifting docks, means items can be switched out or updated as necessary. The warehouse begins to store over-sized or bulky products. These will not fit on regular pallet systems, so they cannot be stored safely. One section of a selective system can be removed and replaced with a cantilever system designed to safely hold items such as pipes, rolls of carpet, and trusses.

This flexibility is helpful if several companies store products in the same warehouse. It is also a benefit if one client goes out business or moves to another country. Setting up space to accommodate a new client fast makes the warehouse more attractive to company and business owners. The warehouse remains full instead of operating at less than optimum levels.

Deciding on a System

Managers who are not sure which system will best suit the needs of the warehouse can lease different ones until the best option is discovered. Some rack systems are similar so trying one out for six months is wise. A drive-in system is similar to a drive-thru system except for one crucial aspect.

A drive-in system has one entrance and is perfect for inventory that is moved on a last-in/first-out (LIFO) basis. A drive-thru system has an entrance at both ends of the loading bay. A first-in/first-out (FIFO) rotation is served best with this option. Both are ideal for high density storage with low rotation rates. Lease one type and then lease the other to determine which one provides the most efficiency.