Over the past two months, members of the fluid power industry have gathered multiple times — for the National Fluid Power Association’s Annual Conference in New Orleans and CONEXPO/CON-AGG in Las Vegas. The global industry also gathered in Germany for the International Fluid Power Conference presented by the Institute for Fluid Power Drives and Systems at RTW Aachen University, while in the coming weeks, the International Fluid Power Society meets for its spring meeting in Savannah. And the one theme that is shining through is a general sense of optimism for the industry and its users despite a somewhat unstable geopolitical climate.
At the NFPA meeting, for example, outgoing president David Price kicked the business meeting off talking about the resilience of our industry, and how its members have survived challenging times and come through stronger on the other side. “The best way I can describe it is that this industry takes grit and perseverance. Because what we do matters. Our work is important and is vital to this industry throughout America and abroad. The oil that flows through the components that we all make in this room and the systems that we support is the lifeblood of our customers,” Price said. “Machinery manufacturing in the US supports about 13 million jobs today. It also contributes $3 trillion in economic output.”
Price did note it’s difficult to ignore the challenges with workforce, adding that as of late last year, there were more than 400,000 manufacturing jobs open. Longer term, with nearshoring underway, millions more roles will need to be filled. “That’s something everyone this room feels, whether it’s hiring, training or just finding the right people to grow your businesses,” he said. “And the customers, they want better efficiency, more connectivity, more sustainable solutions, and they expect reliability every time. So we’re all navigating this complex environment together. We’re all bringing new technology to existing systems, alternative solutions, and all of it while managing cost.”
ITR’s Lauren Saidel-Baker sees small pockets of opportunity moving forward.
Later, Lauren Saidel-Baker, CFA, Economist with ITR Economics, highlighted that despite volatility and challenges in the market, the macro economy is showing signs of life. “We’re starting to see the business cycle improvement. The less good news is that improvement is coming very gradually. This is not like flipping a switch and turning the economy right up. This is really a slow momentum build. Things are gradually getting better. There are still some unknowns out there, But as I look at the economy today, I’m not seeing runaway growth rates, but I am seeing pockets of opportunity,” she said.
Saidel-Baker highlighted that hydraulics and pneumatics shipments have reached their low point and “are in a very clear and confirmed recovery trend.” While beverage and plastics are stagnant, aerospace has not peaked yet and agriculture, mining, and construction are in recovery modes.
Similarly, at CONEXPO, the mood was positive, with most fluid power manufacturers upbeat about the show, attendance and the impact it would have on their business in the long-term. More than 140,000 attended the show, and exhibitors were positive about their booth experiences. OEMs sold machines directly at the show and as many fluid power companies indicated, leads were up and deals were made. This shows a construction market in that recovery mode, as economists are predicting.
Optimism was high on the CONEXPO/CON-AGG show floor.
And as the IFPS prepares to meet, Donna Pollander, ACA, CEO, International Fluid Power Society, said that the IFPS is seeing a similar sense of optimism from members and the board. “One of the most encouraging indicators for us is the activity around workforce development. Certification testing is up, and we’re seeing increased sales of educational books and training modules,” Pollander said. “That tells us companies are continuing to invest in their people and recognize the importance of building strong technical foundations across their teams.”
Pollander said there is a positive outlook about upcoming and new training opportunities and particularly strong interest in foundational and fundamental training, as well as the Support Associate certification. “Organizations are looking for ways to get new employees productive faster while strengthening the core knowledge of their existing workforce,” she said. “Just as important, we’re not hearing much concern about the industry’s economic outlook. The tone of the conversations we’re having is constructive and forward-looking. Overall, the momentum around training, certification, and workforce development gives us a lot of confidence that the industry is on a steady, upward path.”
It’s always a great feeling to end the first quarter on such a positive note. Are you seeing similar outlooks in your industries? We’d love to hear from you!
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