Central Steel & Wire (CS&W), a premier supplier of high-quality metal products and services catering to a diverse clientele from small job shops to large original equipment manufacturers (OEMs), is embarking on a transformative journey by relocating from its Chicago facility, which has served the company for 80 years. This new move aims to establish a cutting-edge product depot and service center that leverages the most efficient material handling technologies available in the industry.
The relocation signifies a significant shift for CS&W as it moves away from labor-intensive material handling methods, opting instead for automated guided vehicles (AGVs) to streamline the movement of its extensive range of metal products.
“For the first time in the metal service center industry, we’ve integrated AGVs to replace traditional material handling equipment,” said Nicole Giesie, vice president of operations at Central Steel & Wire, part of the Ryerson Family of Companies. “This innovation allows us to utilize driverless vehicles for storing and retrieving materials to fulfill customer orders more efficiently.”
Enhanced Efficiency Through New Technology
To fully harness the advantages of AGVs, CS&W is developing a new facility designed with consistent racking systems that optimize space throughout the warehouse. The presence of damaged racking in the existing site would have hampered the efficiency of the AGVs, according to Giesie.
While the implementation of AGVs requires considerable investment, the benefits—including improved material handling accuracy, reduced labor costs, and decreased damage to racking and equipment—make it a worthwhile venture.
“With AGVs in place, we can reallocate our workforce to focus on value-added tasks rather than just moving metal around the facility,” Giesie added.
Initial discussions for the new facility began in August 2021, focusing on the incorporation of AGVs within a 900,000-square-foot space in University Park, located in southern Chicagoland. The facility will require 18,000 storage locations to support 6,000 product stock-keeping units (SKUs), collectively weighing 50 million pounds of various metals, including carbon steel, stainless steel, aluminum, and specialty metals. Additionally, the space will be utilized for value-added processes such as precision cutting and tube laser operations.
Strategic Partnerships for Success
To meet the storage demands, CS&W evaluated various racking manufacturers across the United States, ultimately selecting Steel King Industries, known for its reliable, durable racking solutions and engineering expertise. This choice was bolstered by the long-standing relationship between the two companies, with CS&W supplying steel for Steel King’s products.
“Given our solid partnership with Steel King and its reputation for quality, we found their solutions to best fit our needs,” Giesie stated.
Adding to CS&W’s advantage was the involvement of Steel King dealer Container Systems, Inc., located in suburban Chicago.
“This was a significant project for Central Steel & Wire,” Giesie remarked. “Having Container Systems as a reliable partner to navigate the complexities of this large-scale operation was invaluable. Their involvement ensured smooth progress, allowing us to complete the installation ahead of schedule.”
The new facility will feature Steel King’s I-beam cantilever racking system, consisting of 1,300 uprights and guard rail products. This design facilitates access from both sides, minimizes horizontal space loss typically associated with traditional rack structures, and enables faster loading and unloading.
A Custom Solution for Growing Needs
Constructed with structural steel and a minimum yield strength of 50,000 psi, the cantilever racking is built to last. The system’s design includes robust arm connector plates and bolted column-to-base connections for enhanced durability. Metal service businesses often utilize I-beam cantilever racking for storing a variety of items, including pipes, tubes, rolls, steel bars, sheet steel, and structural components.
The installation comprises over 1,000 double-sided columns and more than 30,000 arms, totaling over 15,000 linear feet of structural metal for guard rails. Notably, it took 70 truckloads to deliver all racking and guard rail elements, ensuring that installers never faced work stoppages due to delays.
“This massive order exemplifies Steel King’s commitment to timely deliveries, enabling installers to maintain continuous progress,” noted Mike Scarlati of Container Systems.
According to Kurt Larson, regional sales manager for Steel King in the central U.S., “The engineering team designed notches in the rails to guide Combilift AGVs, which allowed for more space to be dedicated to racking instead of aisles, resulting in increased storage density.”
With the new racking system, CS&W can operate with greater efficiency and productivity. Additionally, it allows for adaptability to changing storage needs, as the previous facility’s welded racking elements limited flexibility. “Our system permits reconfiguration to meet evolving requirements,” Larson added.
Metal service companies like CS&W aiming to significantly enhance their material handling efficiency will benefit from collaborating with experienced partners who can tailor industry best practices to their specific needs.
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