60 seconds with Steve Rogers, Rack Manufacturer’s Institute

Steve Rogers
Title: President of the Rack Manufacturer’s Institute; vice president of sales for Hannibal Industries
Web site: mhi.org/rmi; hannibalindustries.com
Experience: Has worked for Hannibal Industries since 1987 and has been with the rack division in 1996.
Duties: RMI has traditionally been an engineering-driven organization. In the coming year, Rogers plans to work more closely with MHI as they become a more customer-focused organization.

Modern: Steve, congratulations on the new position. As you see it, what are the most important issues RMI will be addressing in the coming year?
Rogers:  We have a number of projects in the pipeline. Last year, we completed a new document addressing considerations for the planning and use of industrial storage rack. It’s the single most comprehensive rack document I’ve ever seen. It takes an end user from the planning stage through installation, inspection and use of the rack. One of our goals is to get that out into the marketplace. We’re putting the final touches on another usage document that addresses rack inspection. Last, we’re working on a document about rack repair. At RMI, we would like to see all new rack, but we know that’s not practical. We know people repair their own rack, and we’ve worked with some of the best rack repair companies to create a document that addresses how to safely repair and reuse rack. We believe the market is hungry for this information, and our plan is to put our stamp on this at our next meeting and have something ready to showcase at Modex 2014.

Modern: Coming out of the recession, how is the rack industry faring today? And, what are the factors driving the use of rack today?
Rogers: The rack industry took a tremendous hit during the recession. We are not yet at pre-recession levels, but by the end of the year we will be within 10% of typical norms before the recession. The drivers for our industry today are the same as they’ve always been: population growth and the economy. The economy is still not great, but we’re over the panic.

Modern: We’re reading a lot about the return of manufacturing to North America. Is the increase in manufacturing leading to growth in rack sales?
Rogers: Not yet, at least in the U.S. market. There are certainly drivers there that are encouraging people to re-shore and near-shore. But what we are finding is that many companies are looking at Mexico. Further, there was a lot of capacity in the U.S. that is being put back into production. We haven’t seen a lot of need for new rack yet.

Modern: Are there any trends in how rack is being used, where it’s being used or in the types of racks being purchased today? If so, what are they and what’s driving the types of rack storage we’re seeing?
Rogers: The biggest trend is where the rack is being used on a geographic basis. My company is located on the West Coast, and we’re seeing a lot of interest from food and beverage manufacturers in emerging markets and developing companies. RMI has done such a great job of educating the market about safety that these companies want to buy U.S. made products. That’s a solid driver for improved rack sales for the whole industry.

Modern: We think of rack as a mature technology. What are the most important developments or innovations in rack today?
Rogers: Rack is a mature technology. What’s driving innovation is the automation that is now interfacing with rack systems. Since 2009, companies are more open to spending capital on automation to keep their labor and operating costs down. Our challenge is to provide rack systems that meet the requirements of automation. Manufacturing tolerances and precision are important. When our product is part of an automated system, it needs to be of a higher quality. At the same time, the rack structure is a big part of the cost of an automated system. So, we have to keep our costs down so that the automation has an ROI while at the same time improving our quality and tolerances. That’s the biggest challenge for our industry going forward.