Why Companies Are Upsizing Their Chemical Storage Capacity

If you aren’t increasing your chemical storage capacity, it might be time to reevaluate your storage strategy.

Over the last couple of years, many Poly Processing customers have shifted their approach to storing chemicals. They are increasing their total volume capacity in response to many of the market’s trends. External factors, such as the war in Ukraine and supply chain issues, have a trickle-down effect that impacts companies that need to buy and store chemicals.

These companies are discovering that it makes good business sense to upsize their chemical storage capacity — both from an operational perspective and a financial one.

Should your facility increase your chemical storage capacity? Here are some compelling reasons it might make sense for you to upsize.

Minimize Shipping Costs

It’s no secret that fuel costs have spiked in 2022. The war in Ukraine is the major driving factor, but it isn’t the only one. Even small increases in fuel prices have an impact on shipping rates.

As fuel prices are on the rise, the increased costs are passed on to customers. In some cases, chemical shipping costs have more than doubled. 

You can offset delivery expenses by purchasing larger volumes of chemicals. You’ll pay the same amount in shipping whether you’re ordering a full truck of chemical or half a truck. By taking as much chemical as a supplier can deliver, you get more product for the same freight cost. 

In the end, you pay less on shipping and reduce your overall expenses.

Reduce the Impact of Supply Chain Issues

Since the start of the pandemic, supply chains have been disrupted worldwide. Nearly every industry has felt the impact, and chemical manufacturing is no exception. Many chemicals are often hard to come by — especially the most commonly used substances. 

Agricultural chemicals such as herbicides and fungicides are in short supply. Other popular chemicals such as citric acid, glycerin, and acrylic acid are frequently hard to get. In June 2021, the US Department of Homeland Security reported a chlorine shortage that would affect water treatment operations.

When you rely on chemicals for your operations, supply chain issues aren’t merely an inconvenience — they can shut you down. 

You can protect your operations by increasing your chemical storage capacity. Most chemicals don’t have an expiration date, so it’s safe to store more volume over a longer period. If you can buy larger quantities of chemicals when availability is high, you’ll have a reserve supply that can get you through lean times. 

Upsizing your storage capacity helps insulate you from swings in the market, such as shortages and supply chain backlogs.

Avoid Market Price Fluctuations

The costs of chemicals are constantly fluctuating. If your supply is low and you need to order now, you can get stuck buying when the price is at its peak. 

For example, as of August 31, sodium hypochlorite was less expensive than it was two months earlier — but it could bounce back up any moment. Liquid fertilizer recently tripled in price over a three-month period.

You can’t predict when your chemical’s prices will dip. Even if you could, it would be impossible to time your need for a new shipment with market fluctuations.

But if you have an abundance of storage capacity, you don’t need to place an order when your volume is low — you can purchase when the price is right. More capacity gives you more time to watch the market and buy when the prices are at their lowest — not when your supply is at its lowest.

Buy in bulk when chemicals are less expensive, so you can save on purchase as well as shipping.

Choose the Right Tank for Increasing Your Storage Capacity

Poly Processing offers several types of chemical storage tanks across a range of sizes. Whether you want to upsize your capacity by a few hundred gallons or a few thousand gallons, we can meet your needs.

Many of our customers purchase a spare double-wall SAFE-Tank® as a backup, to ensure that they don’t run out of vital chemicals too early. It’s a bit of insurance that lets you take a set-it-and-forget-it approach. 

Poly Processing’s SAFE-Tank systems can be placed outside as an overflow unit when you have extra chemical. If your supplier has an extra supply that they offer you, you don’t have to suddenly find room in your operating process area for the additional inventory. Instead, you can store it in the spare tank.

And with the SAFE-Tank, not only do you have double-wall protection but you don’t need a concrete containment. That reduces the footprint and frees you up to place the tank wherever it’s convenient.

Upsize your storage wisely. Talk to a Poly Processing chemical tank expert to design the right tank for your increased storage needs.