Running a warehouse in Australia has become significantly more expensive in recent
years. Industrial property rents rose by 40% between 2020 and 2024. In Melbourne, for
example, average rents climbed from around $75 per square metre to $108 per square
metre. In Sydney, the pressure is even more acute — average industrial rents have
climbed past $120 per square metre, and that figure only tells part of the story. Every
square metre of floor space carries costs beyond the lease: insurance, utilities, and
ongoing maintenance all compound the burden of an inefficient storage layout. Industry
estimates put the hidden cost of wasted warehouse space at roughly $8 to $12 per
square metre per year. That adds up fast if your storage layout is inefficient.
And then there is the labour problem. In a traditional shelf-racking setup, workers spend
a surprising amount of time simply walking. Some studies have found warehouse staff
walking up to 12 kilometres per shift, losing 90 minutes of productive picking time every
single day. Poor warehouse design can reduce overall productivity by 20 to 40 percent.
This is why vertical carousels and vertical lift modules (VLMs) are gaining traction
across Australian warehouses, manufacturing plants, spare parts stores, and
distribution centres. They bring the stock to the worker — not the other way around.
This goods-to-person approach to inventory retrieval is at the heart of what makes
warehouse automation genuinely impactful for picking efficiency and throughput.
This guide covers what these systems cost in Australia, what drives the pricing, what
hidden costs to watch out for, and how to figure out whether the investment makes
sense for your operation.
A new vertical carousel in Australia typically costs between AUD $60,000 and $80,000. Used systems generally range from AUD $30,000 to #40,000, depending on size, brand,
and condition. Vertical Lift Modules (VLMs) start at around $75,000 and can go significantly higher.
| System Type | Estimated Price Range (AUD) | Best For |
|---|---|---|
| Used Vertical Carousel | $45,000 – $100,000 | Budget-conscious buyers, smaller operations |
| New Vertical Carousel | $120,000 – $200,000 | Businesses wanting full warranty coverage |
| Vertical Lift Module (VLM) | $150,000 – $300,000+ | High-density storage, heavier payloads |
| Vertical Buffer Module | $300,000+ Approx. | High-throughput, complex distribution |
| Mini-Load AS/RS Systems | $750,000 – $3,000,000+ | Large-scale automated warehouses |
* Actual prices may vary depending on supplier, specifications, installation, and current market rates.
These are indicative ranges. Your final price will depend on the specific unit, height, capacity, software requirements, and installation complexity. Requesting a tailored quote for your facility is always the best starting point.
A vertical carousel is an automated storage and retrieval system that rotates carriers in a continuous vertical loop — similar to a Ferris wheel — delivering stored items directly to an operator at an ergonomic pick window. It maximises ceiling height rather than floor space.
A vertical lift module (VLM) is an enclosed automated storage system that uses an internal extractor to retrieve individual trays from a column of shelving. Unlike a carousel, only the requested tray moves. VLMs offer higher payload capacity, dynamic height sensing, and greater storage density for mixed-SKU environments. Brands such as Kardex are widely used in Australian operations.
An Automated Storage and Retrieval System (AS/RS) is the broader category of intralogistics technology that automates the storing and retrieval of inventory. Vertical carousels and VLMs are both forms of AS/RS. Larger mini-load AS/RS systems are used in high-throughput distribution centres and represent a significant step up in both capability and AS/RS pricing in Australia.
A Vertical Buffer Module (VBM) is an automated storage system optimised for high-speed handling of lightweight bins and totes. Unlike a vertical carousel or VLM, which focus on maximising storage density, a VBM prioritises throughput — making it suited to fast-moving fulfilment environments where rapid, continuous order processing is the priority. This higher performance capability is what drives the $180,000+ price point compared to standard vertical storage solutions.
One of the first decisions buyers face is whether to invest in a new system or go with a
quality used unit. Both are legitimate options — it just depends on your budget, timeline,
and operational needs.
New vertical carousels typically cost between $70,000 and $200,000, excluding
installation. You get a full manufacturer warranty, the latest software capabilities, and a
system configured exactly to your specifications.
• You need specific height or tray configurations not available in used stock
• Your operation requires integration with a modern Warehouse Management
System (WMS)
• You want the peace of mind of a full warranty and manufacturer support
• You are planning a long-term investment with 10 to 15 years of expected use
Used vertical carousels are often less than half the price of a new unit — typically in the
$45,000 to $100,000 range. Many come with a 6 to 12 month limited warranty and,
when properly refurbished, can deliver excellent performance for years.
• You have a tighter upfront budget
• You need a system deployed quickly
• You are trialling automation before committing to a larger investment
• The unit has been professionally refurbished and comes with a service warranty
Important: Not all used systems are equal. Always ask whether the unit has been inspected, refurbished, and tested — and whether any warranty is included. Buying from a reputable supplier with in-house maintenance capability makes a significant difference.
The price of a vertical carousel or VLM is not a fixed number. Several factors will push
that figure up or down.
Taller systems cost more upfront, but they use your existing ceiling height to store more
without additional floor space. Vertical carousels can stack items up to 10 metres high,
recovering as much as 80% of your floor space in the process.
More carriers mean more storage capacity — and a higher price. The configuration
needs to match your SKU count and the physical size of your products.
Standard vertical carousel carriers handle up to around 635 kilograms. If you are storing
heavy items — engine parts, industrial components, automotive stock — you may need
a VLM with trays rated up to 998 kilograms or a specialised system like the Kardex
Shuttle, which supports up to 1,000 kilograms per tray.
Basic systems come with standalone control software. If you need WMS integration,
pick-to-light or put-to-light systems, or advanced reporting features, expect to add to the
cost.
How many picks per hour does your operation need? High-throughput environments
may need faster systems or multiple units working in sequence, which increases the
investment.
Every site is different. Electrical upgrades, floor reinforcement, confined spaces, and
access restrictions all affect installation costs. Budget around $20,000 for a standard
vertical carousel installation, and $40,000 or more for a VLM.
Clean rooms, cool rooms, pharmaceutical environments, and other controlled spaces
require specialised materials and configurations — and those add to the price.
Established brands like Kardex and Modula carry a premium but also offer proven
reliability, parts availability, and long-term support. Kardex carousel price typically sits
at the higher end of the new-system range, reflecting the brand’s reputation for
precision engineering and long-term parts support. Lesser-known brands may cost less
upfront but can be harder to maintain — a real consideration for Australian operations in
regional locations far from service centres.
The purchase price is just the starting point. A realistic budget needs to account for
several additional costs that are easy to overlook.
Vertical carousels are large pieces of machinery. Freight from interstate or from
overseas suppliers adds cost, particularly for regional Australian locations.
Your warehouse floor needs to be able to support the load. Some sites will need
electrical upgrades, new data cabling, or structural assessments before installation can
proceed.
Professional installation for a vertical carousel typically runs around $25,000. VLMs are
more complex and generally cost $40,000 or more to install. VLMs arrive in modular
sections and take around two days to set up; vertical carousels are solid units and
usually need around four days.
Your team needs to know how to operate the system safely and efficiently. Factor in
time and any associated training costs, including site-specific safety training required by
your insurer or Safe Work Australia guidelines.
One of the most underestimated costs in any AS/RS implementation is what the
industry calls the ‘parts move’ — the labour-intensive process of physically moving all
your existing stock into the new system. Depending on the size of your inventory, this
can take days or weeks.
There is typically a transition window where your old shelving has been cleared but the
new system is not yet operational. Plan for this carefully to minimise disruption to your
operation.
Ongoing maintenance for a vertical carousel or VLM typically runs between $1,700
and $5,000 per year. Preventive maintenance contracts are strongly recommended —
they reduce the risk of unexpected breakdowns and extend the life of the system.
Unsure whether a new or used automated storage system is the right fit for your budget? Use our 2-Minute Warehouse Space Calculator at verticalcarouselsaustralia.com.au to estimate how many square metres you could recover — before you pick up the phone. Or contact the team directly on +61 (0)477 577 050 or [email protected] for a no-obligation warehouse assessment.
Traditional shelf racking is cheaper to buy. That is a fact. But when you look at the total
picture over five to ten years, the comparison becomes more interesting. This is
especially relevant in cities like Sydney, Melbourne, Brisbane, and Perth, where
industrial rents have risen sharply and warehouse density optimisation is no longer
optional — it is a competitive necessity.
| Factor | Traditional Shelf Racking | Vertical Carousel / VLM |
|---|---|---|
| Upfront Cost | Low ($2,000 – $20,000+) | Higher ($100,000 – $300,000+) |
| Floor Space Used | High (extensive footprint) | Up to 80% floor space recovered |
| Labour Cost | High (workers walk to stock) | Low (goods-to-person delivery) |
| Picking Speed | Slower | Significantly faster |
| Pick Accuracy | Variable (human error) | Up to 99.9% accuracy reported |
| Inventory Security | Low (open access) | Access control and user authentication |
| Scalability | Add more racking = more space | Modular upgrades within footprint |
| Long-Term ROI | Limited | Strong — often within 12 months |
The real cost of traditional racking is hidden in your labour bill and your rent. Workers
walking 12 kilometres a day are not picking. That wasted time is a direct hit to your
output. A vertical carousel eliminates walking time almost entirely by rotating stock
directly to the operator — delivered at a fixed, waist-height ergonomic pick window. That
means no bending to low shelves, no stretching to high racks, no ladder climbing, and
no forklift access required for routine picking. For Australian employers, this directly
reduces the risk of musculoskeletal injuries, which are among the most common and
costly WorkCover claims in warehouse environments. Designing out manual handling
hazards at the source is exactly what Safe Work Australia’s ergonomic guidelines
recommend — and automated goods-to-person systems are one of the most effective
ways to do it.
Factor in the floor space savings — up to 80% in some cases — and the reduction in
rent or the freed-up space for other uses, and the ROI case for vertical storage
becomes compelling for many Australian warehouses.
A vertical carousel is generally less expensive than a VLM, with new VCs starting from around $120,000 compared to $200,000+ for a VLM. However, VLMs offer higher payloads, greater storage density, and individual tray retrieval — making them better suited to certain operations despite the higher price.
| Feature | Vertical Carousel (VC) | Vertical Lift Module (VLM) |
|---|---|---|
| Principle | Ferris wheel loop — all carriers rotate | Individual tray retrieved by extractor |
| Max Height | Up to 10 metres typical | Up to 30+ metres (extractor-based design scales higher) |
| Max Payload per Tray | ~635 kg | Up to 998 kg |
| Storage Depth | Around 5 metres | 10 – 18 metres |
| Energy Use | Entire system rotates | Only the extractor moves |
| Installation Time | Around 5 days | Around 5-10 days (modular sections) |
| Dynamic Height Sensing | No | Yes — adjusts tray spacing in real-time |
| New Price (AUD) | $120,000 – $200,000+ | $150,000 – $300,000+ |
| Installation Cost | ~$20,000 | ~$40,000+ |
Vertical carousels work on a simple loop rotation and are well-suited to operations
storing items of similar size and weight. Because the entire carrier loop must rotate as
one unit, there is a practical structural ceiling on how tall a VC can be built — typically
around 10 metres in standard configurations. VLMs, by contrast, use an internal
extractor that moves independently between two static columns of trays. Only the
extractor moves, which means the structure itself can scale to 30 metres or more
without the rotational load constraints that limit carousels. VLMs also use intelligent
height-detection sensors that adjust tray spacing automatically, making them more
efficient for mixed-SKU environments or heavier stock.
Both systems deliver goods to the operator at a fixed pick window, eliminating the need
to walk the warehouse floor.
Looking at price alone is not enough. The smart question is: what does this system cost
— and what does it return — over its full working life?
• Purchase price: $120,000 – $200,000
• Annual maintenance (x10 years): $20,000
• Estimated total: $140,000 – $220,000
• Floor space recovered: up to 80% of original storage footprint
• Labour time saved: significant reduction in walking and searching time
• Pick accuracy improvement: up to 99.9% accuracy — fewer errors, fewer returns
• Inventory security: access control reduces shrinkage and theft
• Lifespan: well-maintained systems last 15 to 20+ years
Industry data suggests that 80% of businesses that invest in automated storage
systems see a return on investment within 12 months. One in three achieves that ROI in
just three months.
That said, ROI depends on your specific situation — volume, labour costs, space
constraints, and how well the system is integrated into your workflow. A site assessment
is the best way to get a realistic picture.
A new vertical carousel in Australia typically costs between AUD $60,000 and $80,000. Used systems generally range from AUD $30,000 to $40,000, depending on size, brand, and condition. Vertical Lift Modules (VLMs) start at around $75,000 and can go significantly higher.
| System Type | Estimated Price Range (AUD) | Best For |
|---|---|---|
| Used Vertical Carousel | $45,000 – $100,000 | Budget-conscious buyers, smaller operations |
| New Vertical Carousel | $120,000 – $200,000 | Businesses wanting full warranty coverage |
| Vertical Lift Module (VLM) | $150,000 – $300,000+ | High-density storage, heavier payloads |
| Vertical Buffer Module | $300,000+ Approx. | High-throughput, complex distribution |
| Mini-Load AS/RS Systems | $750,000 – $3,000,000+ | Large-scale automated warehouses |
Want to estimate your ROI before committing to a call? Use our 2-Minute Warehouse Space Calculator at verticalcarouselsaustralia.com.au to see how much floor space you could recover based on your ceiling height and current footprint. Vertical Carousels Australia also provides full site assessments across Sydney, Melbourne, Brisbane, Perth, and nationally — call +61 (0)477 577 050 or email [email protected].
The upfront cost of a vertical carousel or VLM does not have to be a barrier. There are
several ways to structure the investment.
Many Australian businesses finance automation equipment through equipment leases
or chattel mortgages. This converts a large capital expense into a manageable monthly
payment — and in many cases, the monthly cost is offset by labour savings within the
first year.
Speak with your accountant or business finance broker about what structure suits your
situation. Vertical Carousels Australia can work with your team to provide the
documentation needed for finance applications.
Purchasing a quality refurbished vertical carousel is a practical way to get the benefits
of automation at a lower entry cost. Once the system is generating savings, you can
plan for upgrades or additional units.
Some businesses start with a single unit for their highest-velocity stock, then add
capacity as the ROI justifies further investment. This approach reduces upfront risk
while still delivering meaningful efficiency gains from day one.
Depending on your business structure, you may prefer to keep automation costs as an
operating expense rather than a capital investment. Leasing arrangements can help
achieve this. Your accountant can advise on the best approach for your tax position.
The honest answer is: it depends on your operation. But for many Australian
businesses, the answer is yes.
Vertical carousels and VLMs tend to deliver the strongest results for businesses that:
• Store a large number of SKUs in a limited space
• Have high picking volumes — especially repetitive, high-frequency picks
• Are paying significant labour costs for manual stock retrieval
• Are dealing with floor space constraints and high industrial rents
• Need improved inventory accuracy and security
• Want to reduce WorkCover exposure and comply with Safe Work Australia
ergonomic guidelines by eliminating manual reaching, bending, and
ladder-climbing from picking workflows
• Spare parts warehouses and industrial distributors
• Automotive parts and accessories
• Pharmaceutical and medical supply operations
• Manufacturing facilities managing components and assemblies
• eCommerce fulfilment and distribution centres
• Government and defence logistics
• Retail back-of-house storage and replenishment
If your warehouse staff are walking long distances to retrieve stock, you are losing money every shift. If your floor space is expensive and underutilised, you are paying for space you are not using efficiently. Vertical storage systems directly address both problems.
A well-maintained vertical carousel or VLM can remain in productive service for 15 to 20
years or more. This longevity is one of the strongest arguments for viewing vertical
carousel cost in Australia as a long-term capital investment rather than a short-term
equipment purchase.
Preventive maintenance is the single biggest factor in extending system life. Operations
that run scheduled servicing — typically annually — see significantly fewer unplanned
breakdowns and lower total lifetime costs. Reactive-only maintenance, by contrast,
shortens lifespan and leads to higher repair bills over time.
Rather than replacing a system outright, many Australian businesses opt for a mid-life
refurbishment — replacing wear components, upgrading control software, or
reconfiguring tray layouts to match changed SKU profiles. This can extend operational
life by a further five to ten years at a fraction of the cost of new equipment. Upgrade
paths are particularly well-developed for established brands, where parts availability is
reliable well into the second decade of operation.
Yes — in many cases. Smaller operations with high SKU counts and limited floor space
often benefit as much as large distribution centres, sometimes more. A single
well-placed vertical carousel can free up enough floor space to avoid an expensive
warehouse move or expansion. For a small spare parts warehouse in Brisbane or Perth
storing thousands of product lines, even a used system paying for itself within the first
year is a realistic outcome. The key is matching the system to your specific picking
volume and SKU profile.
Automated storage system price is only one part of the decision. Buyers who focus
solely on the sticker price often run into avoidable problems down the track. These are
the most common mistakes worth knowing about before you commit.
Moving existing inventory into a new automated storage system takes significantly more
time and planning than most buyers anticipate. Factor this into your implementation
timeline before the system arrives on site.
A vertical carousel suits operations with similarly sized products. If you have a highly
varied mix of large and small items, a VLM with dynamic height sensing may deliver
better storage density and faster retrieval. Getting this wrong means leaving a lot of
potential capacity unused.
Used systems can be excellent value — but only when they have been properly
inspected, refurbished, and tested by a qualified technician. Always ask for a service
history and confirm whether any warranty is included. A reputable supplier with in-house
maintenance capability is far less likely to sell you a unit with hidden problems.
If your warehouse runs a Warehouse Management System, confirm compatibility before
purchasing. WMS integration and pick-to-light systems dramatically improve order
fulfilment speed and picking efficiency — but only if the system supports them.
Retrofitting integration after installation adds cost and complexity.
Some staff resistance to new technology is normal. Building in adequate training time
and involving key warehouse staff early in the process significantly improves adoption.
A system that your team understands and trusts delivers far better picking efficiency
outcomes than one that was installed but never properly embedded into daily
operations.
Vertical Carousels Australia Pty Ltd is an Australian-based provider of warehouse
automation and high-density storage systems. With experience across new and used
equipment, preventive maintenance, equipment relocations, and software upgrades, the
team offers practical guidance for businesses at every stage of their automation journey.
• New and used vertical carousel and VLM supply
• Pick-to-light and put-to-light system integration
• Warehouse Management System (WMS) software
• Preventive maintenance and breakdown repair
• Equipment relocations and refurbishment
• Customised storage bin accessories for carousel trays
Speak with our team about new and used systems, tailored quotes, and warehouse assessments across Australia. Or start online — use our 2-Minute Warehouse Space Calculator to estimate your floor space recovery before you call.
Phone: +61 (0)477 577 050 |
Email: [email protected]
www.verticalcarouselsaustralia.com.au
13 Starkey Street, Hurlstone Park, Sydney NSW 2193
