From bumpers to body sides, steel racks remain a cornerstone of automotive logistics. Kevin O’Neal of ORBIS Corporation shares expert advice on durability, program cost, and emerging trends in automation.
Understanding Where Steel Racks Shine
When it comes to heavy-duty reusable transport packaging, few solutions offer the durability and load-handling capabilities of steel racks. That’s especially true in automotive and industrial applications, where the size and shape of parts can push the limits of plastic containers.
“Steel gives us another level of durability,” said Kevin O’Neal, Director of Sales and Development for Metal Solutions at ORBIS Corporation. “For five-year programs, there’s a comfort level some OEMs and Tier 1s have with steel because they know it will hold up over time. Engines, hoods, transmissions, body sides—those aren’t going into bulk containers or totes.”
Since acquiring Hinkle Manufacturing and Response Packaging in 2018, ORBIS expanded its portfolio beyond plastic totes and dunnage to include custom-engineered steel racks. That shift allows ORBIS to serve a broader range of customers and parts, offering more flexibility in designing reusable packaging programs that align with freight density, handling equipment, and program lifecycle requirements.
Durability, Repurposing, and ROI
According to O’Neal, one of the most misunderstood aspects of steel packaging is its long-term value. “People sometimes fixate on the upfront cost,” he noted. “Sure, a rack program might be a $200,000 or $500,000 investment, but what matters is the total cost over five years.”
Steel racks are often the most efficient option when considering freight utilization, turns per year, and repurposing. O’Neal walked through a common example: “You might get 10 parts in a tote, 40 in a bulk container, or 100 in a hanging bag rack. That translates to fewer units purchased, fewer turns, and potentially better cube-out on trucks. For an OEM with a supply chain loop from Mexico to the United States, this savings on freight density is huge.”
Beyond lifecycle savings, steel racks offer unmatched recyclability and repurposing potential. “Take the dunnage out and the rack is 100% recyclable,” he said. “And if the structure’s still good at the end of the program, you might be able to repaint, re-stencil, swap out the bags or rods, and get another life out of it—at half the cost of new.”
Refurbishment vs. Repair: Knowing the Difference
O’Neal emphasized that ORBIS distinguishes between repair and refurbishment, a nuance often overlooked. “Repair is patching up a few racks—replace a bent post, swap a curtain, bolt in a new hanger. That’s not something most large rack manufacturers like us focus on,” he said. “Refurbishment, on the other hand, is a full production job. We’re talking 100–300 racks being stripped, welded, repainted. That’s something we’re absolutely set up to do.”
Repurposing tends to happen most frequently with work-in-progress racks that Tier 1 suppliers own outright, allowing flexibility in how they’re reused between programs.
Customization is another key element of rack programs. According to O’Neal, ORBIS’s metal rack business functions like a job shop. “We’re not dealing in commodities. Every rack is tailored,” he explained. “It could be a standard 48x45x52 bag rack, or it might be a large fascia rack with special dunnage or ergonomic considerations for the line.”
One of ORBIS’ recent innovations is a knockdown bag rack that offers a 2:1 return ratio. “You can ship 52 full racks and get 104 back. That saves money, but it comes with tradeoffs,” he noted. “Operators at both ends need to handle assembly and breakdown. It might require two people, where a static rack would be single-operator.” In terms of saving money on freight, however, utilizing the second material handler is well worth the investment.
Designing for Lifecycle and Handling
When designing for a typical four- or five-year program, ORBIS takes into account several factors: the expected number of turns, rack weight, line-side space, and handling method. “Are you using a pallet jack or a forklift? That changes everything,” O’Neal said. “If it’s pallet jack, you can’t have a full 3×8 tube base, you need strap steel or open access.”
Tight Tolerances and Automation Drive New Trends
Automation is rapidly changing rack requirements. “The biggest shift we’re seeing? Robotically loaded or unloaded racks,” said O’Neal. “That means tighter tolerances—plus or minus 1/32 of an inch in some cases. And you need to document it with CMM [coordinate measuring machine] data.”
RFID and Bluetooth tagging are also more common, even on simple steel bins. “Customers want to know where their assets are. We’re putting RFID tags on bins that just hold stampings—it’s all part of smarter inventory control.”
Environmental Impact, Recycling and Electric Vehicles
While customers may not track environmental metrics closely, many do recognize the inherent sustainability of steel. “You grind it down and send it back to the mill. That’s prime scrap,” said O’Neal. “It closes the loop. And if they can refurb rather than replace, that’s another point on the sustainability scorecard.”
When asked about electric vehicle (EV) platforms, he emphasized that they aren’t reducing the demand for metal racks; they’re just shifting the type of parts being transported. “They don’t have engines or grills, but they still have fascias, floor panels, and battery trays.,” said O’Neal. “EV platforms use just as many racks, just for different components.”
According to O’Neal, the market is mature enough that most customers now understand the use cases for steel. “You don’t get many people asking, ‘Why should I use a rack?’” he said. “The only hang-up sometimes is the upfront cost. But we help them understand the full ROI, including freight, durability, reusability.”
Even weight concerns are often overstated. “A typical bag rack weighs around 300 pounds,” he noted. “it’s not light, but it’s manageable.”
With over two decades in steel packaging and another 20 years in custom manufacturing, Kevin O’Neal has seen the evolution of reusable metal solutions firsthand. Now heading up ORBIS’s metal sales development team, he provides support for other ORBIS salespeople not only with technical solutions but with strategic insight.
“We go in with the full solution, including racks, containers, totes, dunnage,” he explained. “A lot of packaging engineers don’t want to see three different reps. They want one partner who gets the whole picture.”
That complete-package thinking, along with steel’s durability, reusability, and freight efficiency, ensures metal racks remain a mainstay in the automotive and manufacturing reusable packaging ecosystem.
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Rick LeBlanc, EMBA, is the founder and editor of Reusable Packaging News (subscribe to the free newsletter) and editor of Western Pallet Magazine. A supply chain journalist with more than 30 years of experience, he specializes in pallets, reusable packaging, material handling and related operations. Rick is co-author of Pallets: A North American Perspective and Pallets & Progress: A Collected History of Pallets and Palletized Handling 1922–1945. He is also an advisory board member of the Virginia Tech Center for Packaging and Unit Load Design. Read Rick’s full bio.
