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2018 Annual Report on the US Fluid Power Industry

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2018 Annual Report on the US Fluid Power Industry a 2018 ANNUAL REPORT ON THE U.S. FLUID POWER INDUSTRY Foreword Welcome to our sixth annual report on the U.S. fluid power industry—one of the most important yet least understood industries in the U.S. economy. Most people do not know that: • Fluid power (hydraulics and pneumatics) is a workhorse across the U.S. economy, the technology of choice for dozens of industries and hundreds of applications. • In 2018, the manufacture of fluid power components was a $23.5 billion industry in the United States. It was also competitive worldwide, with 2018 exports valued at $6.5 billion. Fluid power systems transmit more power • It is estimated that 862 companies in the United States employ more than 67,149 people in the manufacture of fluid power components, representing an annual payroll of more than $4.3 billion. in a smaller space than other forms of power • Fluid power has a major downstream economic impact. Ten key industries that depend on fluid power include an estimated 23,200 companies in the United States, employing more than 778,056 people for an annual transmission, making fluid power payroll of more than $49.5 billion. • Fluid power and the industries it serves depend on a highly educated workforce, leading to investment in new the technology of choice across dozens fluid power education and training resources. More two-year and four-year colleges are teaching fluid power. of industries and hundreds of applications. • Fluid power systems consume a major portion of our nation’s energy. Existing technologies and best practices have been shown to reduce energy use in some fluid power systems by 30% or more. • The fluid power industry is identifying and addressing key research challenges to continue meeting the needs of its diverse customer base. • Fluid power has an active industry/academic coalition that focuses on these key research challenges. FLUID POWER IS A Significant industry and government resources support this important cause. In short, contrary to some reports, fluid power is a modern and thriving technology. To learn more or to have me speak to your company or organization, please contact me. I love telling our industry’s important story. WORKHORSE ACROSS Best regards, THE U.S. ECONOMY Fluid power includes hydraulic and pneumatic Eric Lanke President/CEO technologies, which both use a fluid under National Fluid Power Association [email protected] pressure to transmit power from one place to another. In hydraulics, the fluid is a liquid. In pneumatics, it is a gas. 2018 Annual Report on the U.S. Fluid Power Industry | 3 Here’s what fluid power can do in some of its top markets: Aerospace Food Processing and Packaging Lawn and Garden Equipment Material Handling Only fluid power can lift a jumbo jet, bank Only fluid power can keep today’s food Only fluid power can deliver the perfect Only fluid power can keep global supply and roll a fighter plane, and keep a rocket production processes clean and safe. cut for your backyard or favorite golf course. chains moving. on course. Agricultural Machinery Biomedical Cars and Trucks Metalworking and Machine Tools Mining Machinery Oil and Gas Machinery Only fluid power can feed the world by Only fluid power can precisely control Only fluid power can make cars and trucks Only fluid power can push, pull, press, Only fluid power can reach and remove Only fluid power can energize the world planting and harvesting massive fields. the life-saving and sustaining equipment easy to steer and stop and provide the cut, and transform raw materials into valued material without sparking disaster. by bringing energy from deep in the earth. in our nation’s hospitals. regenerative power to boost fuel efficiency. finished products. The two fluid power technologies offer these industries and others unique advantages: Hydraulics Pneumatics • High power-to-weight ratio • Inexpensive and lightweight • High torque at low speed • Simple control systems • Ability to hold torque constant • Clean and non-reactive in magnetic environments • Ruggedness and reliability • Speed and precision Construction Machinery Entertainment Factory Automation Power Generation Only fluid power can build roads Only fluid power can animate the rides Only fluid power can automate the heavy Only fluid power can harvest energy from and buildings, moving mountains and monsters at our amusement parks. and precise manufacturing processes the wind and waves. when necessary. that keep our economy moving. For more examples, check out our social media hashtag #ONLYFLUIDPOWERCAN 4 | 2018 Annual Report on the U.S. Fluid Power Industry 2018 Annual Report on the U.S. Fluid Power Industry | 5 25.0 23.5 21.1 21.3 21.4 20.3 20.7 20.0 19.2 18.3 16.0 15.0 12.4 10.0 BILLIONS of U.S. DOLLARS BILLIONS of U.S. 5.0 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 est. Shipments of U.S. Fluid Power Products | In 2018, the manufacture of fluid power components was a $23.5 billion industry in the United States. It is the highest total in the history or the industry. 20.0 6.0 18.2 18.0 5.3 5.3 5.3 5.1 5.2 15.8 16.0 16.2 5.0 4.9 16.0 15.4 15.6 4.6 14.6 4.4 14.0 13.9 4.0 3.9 12.0 12.1 3.3 3.0 FLUID POWER IS A 10.0 9.1 8.0 2.0 6.0 4.0 1.0 BILLIONS of U.S. DOLLARS BILLIONS of U.S. $23.5 BILLION BUSINESS 2.0 DOLLARS BILLIONS of U.S. 0.0 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 est. est. Shipments of U.S. Hydraulic Products | Shipments of U.S. Pneumatic Products | IN THE UNITED STATES The manufacture of hydraulic products was a $18.2 The manufacture of pneumatic products was a $5.3 billion business in 2018, 77% of the fluid power total. billion business in 2018, 23% of the fluid power total. 6 | 2018 Annual Report on the U.S. Fluid Power Industry 2018 Annual Report on the U.S. Fluid Power Industry | 7 7.0 6.5 6.0 5.9 5.9 5.7 5.3 5.5 5.5 5.0 4.7 4.0 3.5 3.0 2.6 2.0 1.0 BILLIONS of U.S. DOLLARS BILLIONS of U.S. 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Growth of U.S. Fluid Power Exports | Fluid power is also strongly competitive around the world, with 2018 exports valued at $6.5 billion. This is also the highest value we’ve seen in the history of the industry. 1.2 1.0 0.8 CANADA MEXICO 0.6 CHINA GERMANY UNITED KINGDOM FLUID POWER IS 0.4 BRAZIL AUSTRALIA JAPAN SINGAPORE 0.2 FRANCE COMPETITIVE DOLLARS BILLIONS of U.S. 0.0 WORLDWIDE Exports to Major Trading Partners | Our top five export destinations are Canada, Mexico, China, Germany and the United Kingdom. 8 | 2018 Annual Report on the U.S. Fluid Power Industry 2018 Annual Report on the U.S. Fluid Power Industry | 9 It is estimated that 862 companies in the United States employ more than 67,149 people in the manufacture of fluid power components, representing an annual payroll of more than $4.3 billion. States with the highest number of Fluid Power Manufacturing Employees: FLUID POWER EMPLOYS 51-100 31-50 1-30 0 67,149 PEOPLE IN THE There are fluid power employers in47 of the 50 states, with the highest concentrations in California, Texas, Illinois, Michigan and Ohio. UNITED STATES While these employers fill traditional positions in management, finance, sales, and engineering, they most specifically seek: • Design engineers who can design fluid power systems and • Mechanics who can assemble and install fluid power systems components as well as develop new concepts, applications and components, as well as troubleshoot and maintain systems and improvements to existing installations. on machines used in every facet of industry. • Sales engineers who can market and sell fluid power • Technicians who can operate machines equipped with fluid systems and components, working closely with fluid power systems as well as manufacture and test fluid power power manufacturers, distributors and customers. systems and components. 10 | 2018 Annual Report on the U.S. Fluid Power Industry 2018 Annual Report on the U.S. Fluid Power Industry | 11 Dozens of U.S. industries depend on fluid Ten key industries that depend on power technology to keep operations fluid power include an estimated 23,200 running & products competitive. companies in the United States, employing more than 778,056 people for an annual The top five hydraulic markets (shown in white) represent 53% of all hydraulic component sales. payroll of more than $49.5 billion. Construction Machinery 21% 29% Other 1% Plastics Machinery 1% Paper Machinery Agricultural Machinery 13% 1% Aerospace Product & Parts 1% Metalworking & Machine Tools 2% Power Generation 3% Mining Machinery Automotive (Inc. Light Trucks) 7% 4% Lawn & Garden 4% Oil & Gas Machinery Material Handling (Inc. Conveying) 6% 6% Class 4-8 Trucks (Inc. Vocational Trucks) The top five pneumatic markets (shown in white) represent 31% of all pneumatic component sales. 59% Other States with the highest number of Fluid Power Dependent Employees: 1,000-2,000 501-1,000 101-500 0-100 1% Oil & Gas Machinery 1% Sawmill & Wood-working Machinery 1% Printing Machinery 2% Metalworking & Machine Tools 2% Packaging Machinery Employers who depend on fluid power are in all 50 states, with the highest concentrations in 3% Material Handling (Inc.
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