Incoming tariffs could overcorrect the chemical storage industry. After brazenly flaunting price hikes, which amount to outright embargos for cash-strapped businesses, President Trump will enact 25 percent tariffs on all steel and aluminum products. Steel, which fabricators use in manufacturing metal chemical drums, is the building industry’s most common raw material. Sudden price fluctuations will likely ripple effect on residual commodities, including chemical storage totes and containers. While manufacturers and retailers have begun stockpiling shelf-stable products and merchandise for anticipated supply chain shortages, companies storing large flammable chemical payloads are faced with another pressing concern: where to put those dangerous but necessary chemicals safely?
Although manufacturers might consider forgoing compliant chemical storage protection, negligent accommodations precede hefty civil fines, bankruptcy, and potential injuries to workforces and vulnerable property. OSHA says that companies may store no more than 25 gallons of flammable materials outside an approved chemical storage cabinet or warehouse. Adjusting operating expenses mid-quarter reduces profit and stockholder dividends, so inventory managers must trim an already depleted budget for compliant chemical storage. Companies looking to remain within the good graces of lending institutions and OSHA should consider chemical storage rentals, which cost a fraction of a purchased locker.
An Inevitable Steel IBC totes and Metal Drums Shortage?
Carbon steel IBC and metal drums will likely be in high demand. New metal container manufacturing will quickly slow down with suppliers bogarting existing supplies or erratically raising costs, potentially outpricing most small to medium businesses relying on compliant chemical storage. Protecting existing carbon IBC systems and metal drums is a top priority for profit-conscious companies. Exposed metal containers are subject to rust, leaks, and further structural degradation to the drums or totes and expensive chemical contents. Although companies eating the costs of new metal storage containers is a stark reality, properly storing drums and totes in a compliant hazmat storage building can mitigate residual costs. Our chemical storage lockers streamline compliant tote storage and protection. Wide-swinging doors and pushback shelving allow easy chemical storage and retrieval without interrupting nearby workflows.
Hazmat Locker Rentals Could Offset Chemical Storage Tariffs
Chemical storage tariffs aren’t limited to building materials. China is the world’s leading exporter of chemicals and manufacturing precursors. Trump hasn’t hidden his disdain for an alleged trade imbalance with the Asian gas giant, and an incurring trickle-down effect will inevitably reach consumers. Bulk chemical purchases further snarl supply chains, jeopardizing time-sensitive projects and orders. Manufacturers striving for inventory stabilization must adhere to safe chemical storage practices for worker safety and to avoid chemical degradation in heat and uncontrolled climates. US Hazmat Rentals’ fire-rated chemical storage lockers have optional climate control and mechanical ventilation, preserving volatile and expensive chemicals. Keen inventorying also encourages product organization, allowing managers to keep a watchful eye on dwindling supplies.
