By Walter M. Bachtell TOO. nVE^Hww**"
nager of Warehouses, Truscon Steel GUMUtHp/fBH *. »n^jT^ I
ie days ago, I received a complimentary copy of a trade mägazilfc, which stated that I was to speak at this meeting on "The Ideal Warehouse Layout." I trust you do not Tiave the same impression, for what we might assume to be ideal today, will, undoubtedly, be obsolete tomorrow—at least in part. However, an efficient layout is necessary for the successful operation of a warehouse, and I will endeavor to present some constructive thoughts on layout, but prefer to talk on the general subject: "Warehouse Operation."
Is warehouse operation, as a good Vaany seem to think, just unloading, cutting, bending and loading bars?—yes, if preparing a "take-off" and quotation is selling. The proper handling of these operations is, of course, Ver^ essential, but operating presents many other problems, some of which are just as important. I wilLtry to enumerate the majority of these problems, but time will permilKo a brief discussion of each. "\
Location and Property • '* v..
These are both very important. Several months spent in analyzing conditions from all angles, will not be wasted. Keep in mind that ycu are buying a warehouse site and not property for investment. At the same time, you do not want your property to depreciate in value. Therefore, you must decide which is the best or coming industrial district of fhe city.
You will, of course, prefer to have your warehouse.in the center of activities so as to equalize trucking distances. This does not neces-. sarily mean you should be down town. Property within the first and second mile zone of any growing city, is generally too expensive for a reinforcing bar warehouse. I would say,that sites four and five miles from the down town district are not too far out in the principal cities.
For cost comparison, the purchase price of the land should be considered along with expenses now, or later, for grading, filling, railroad siding, assessments for various improvements, as well as the increased cost of construction, if any, due to poor soil conditions.
Leased property is not recommended, unless your investment is small and can be depreciated during the term of the lease, or unless you have an option to purchase at a stated amount. On leased property, there is a tendency on the part of the lessee, especially towards the end of the leased term, to postpone needed improvements, due to the uncertainty of renewing lease at a satisfactory rental.
Whether you buy or lease—provide for some expansion. Too