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.

• Fluid power systems consume a major portion of our nation’s energy. Existing technologies and best practices
of industries and hundreds of applications.
have been shown to reduce energy use in some fluid power systems by 30% or more.

FLUID POWER IS A
• 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.
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
elanke@nfpa.com
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
• High power-to-weight ratio
• High torque at low speed
• Ability to hold torque constant
• Ruggedness and reliability
Pneumatics
• Inexpensive and lightweight
• Simple control systems
• Clean and non-reactive in magnetic environments
• 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

BILLIONS of U.S. DOLLARS

16.0
15.0

12.4

10.0

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 5.2 5.3

BILLIONS of U.S. DOLLARS

BILLIONS of U.S. DOLLARS

16.2 5.0 4.9 5.1
16.0 15.8 16.0 15.6
15.4 4.6

FLUID POWER IS A
14.6 4.4
14.0 13.9
4.0 3.9
12.0 12.1
3.3
10.0 3.0
9.1
8.0

$23.5 BILLION BUSINESS

2.0
6.0
4.0
1.0
2.0
0.0 0.0

IN THE UNITED STATES

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 |

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
5.5 5.7 5.5
5.3

BILLIONS of U.S. DOLLARS

5.0
4.7

4.0
3.5
3.0
2.6
2.0

1.0

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

CANADA
1.0

UNITED KINGDOM
MEXICO
BILLIONS of U.S. DOLLARS

GERMANY
0.8

CHINA
0.6

BRAZIL

AUSTRALIA
FLUID POWER IS

SINGAPORE

FRANCE
0.4

JAPAN
COMPETITIVE 0.2

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 EMPLOYS

Fluid Power Manufacturing Employees:

51-100 31-50 1-30 0

67,149 PEOPLE I N THE There are fluid power employers in 47 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.

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 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. Conveying) California, Texas, Illinois, Michigan, Ohio, Pennsylvania, New York and Florida.
Class 4-8 Trucks (Inc. Vocational Trucks) 14% 4% Food Processing
4% Automotive (Inc. Light Trucks)
Semiconductor 5% 4% Medical Equipment

Generally speaking, pneumatics is diversified into many more individual markets than hydraulics.

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 Fluid power and the industries it serves
depend on a highly educated workforce.
Investment continues in new fluid power education and training resources, and more two-year
and four-year colleges are teaching fluid power.

Fluid power systems consume a significant Number of 2-year and 4-year colleges

portion of our nation’s energy. in the NFPA Educator Networks

10-12 4-6

The U.S. Department of Energy says fluid power systems are responsible for up to 3% of the energy consumed in the United States, 7-9 1-3
through fluid power’s many mobile, industrial and aerospace applications. Many of these systems are well-designed and well-maintained,
making them energy efficient, but others lack proper design and maintenance. Some of these systems can reduce energy use through
existing technologies and best practices, including:

Hydraulic systems: Pneumatic systems: The NFPA Educator Network includes 86 two-year colleges Four-year universities:
and 55 four-year universities throughout 14 states, with
• Eliminating parasitic losses • Eliminating pressure drop • Understand fluid power benefits and limitations
the highest concentrations in Wisconsin, Illinois and Texas.
• Controlling flow • Repairing leaks • Understand concept and theory of fluid power laws and
NFPA works with these schools to teach the competencies principles, including energy transfer and power efficiency
• Smart use of accumulators • Reducing pressure most needed by fluid power industry employers: • Understand fluid power components and circuits
• Pressure reducing valves • Evaluating plumbing and storage Two-year colleges: • Understand machine requirements and translate into
• Load sensing pumps • Optimizing air blow • Read circuit diagrams and understand the function of fluid power system requirements
• Pressure compensated pumps • Employing intermediate bore-size cylinders components in fluid power systems • Apply design, simulation and analysis tools to fluid power
• Determine and perform calculations to move loads in fluid components and systems
• Servo valves • Correctly sizing components
power systems (e.g., torque, speed, power) • Size components in fluid power systems
• Hydraulic power units vs. electric motors
• Specify and size fluid power system components (e.g., pumps, • Integrate sensing and electronic control functions with fluid
valves, cylinders, hoses, filters, reservoirs, accumulators) power components and systems
Several companies perform audits to identify and troubleshoot weaknesses in working fluid power systems. One such provider reports
that when these technologies and best practices are implemented, energy savings average 30%, and the cost of implementation is • Analyze and troubleshoot problems with fluid power systems • Work hands-on with fluid power components and systems
recouped in 4-5 months.
• Program and connect electronic controls for fluid power systems • Inspect and analyze for product failure, and develop
• Promote safe working conditions with pressurized systems corrective action

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 The fluid power industry is identifying
and addressing key research challenges.
NFPA’s Technology Roadmap for the Fluid Power Industry identifies key research challenges for the
industry to continue meeting the needs of its diverse customer base.

Fluid power customers want to provide their customers with:

 Increased productivity Increased Lower total and

and performance availability/uptime lifecycle costs

NFPA’S TECHNOLOGY Increased ease/

predictability of maintenance
Quieter machines Machines that comply
with safety regulations

ROADMAP HELPS THE To meet these needs, the fluid power industry must tackle seven broad research challenges, identified in the

INDUSTRY IDENTIFY
2017 NFPA Technology Roadmap:

• Increase the energy efficiency of fluid power components • Reduce the environmental impact of fluid power components
and systems. and systems (e.g., lower noise, eliminate leaks).

AND ADDRESS ITS KEY

• Improve the reliability of fluid power components and systems
(e.g., increase uptime, reduce maintenance requirements,
make fluid power safe and easy to use).
• Reduce the size and weight of fluid power components and
• Improve and apply the energy storage capabilities of fluid
power components and systems.
• Improve and widen the scope of application for fast, accurate,
cost-effective fluid power control.

RESEARCH CHALLENGES
systems while maintaining or increasing their power output.

• Build “smart” fluid power components and systems (i.e., ones

that perform self-diagnostics and troubleshooting and offer
“plug and play” integration).

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 A nationwide network of research
universities and laboratories work
with the fluid power industry
to address the research challenges identified by the NFPA Technology Roadmap.

FLUID POWER HAS AN

ACTIVE INDUSTRY/
ACADEMIC COALITION While much of the funding for this research comes from the
industry itself, two recent government initiatives have dramatically
increased the network’s size and scope.

In 2006, the National Science Foundation gave the University of

In 2017, the U.S. Department Energy began a $5-million-a-
year research program to improve the efficiency of fluid
power systems in off-highway vehicles. This program has created
research infrastructure through significant funding for three national

THAT FOCUSES ON ITS KEY

Minnesota a $40 million grant to create the Center for Compact
and Efficient Fluid Power (CCEFP), an engineering research center
focused on fluid power technology. Through the CCEFP, hundreds of
industry-directed research projects have been completed, helping to
laboratories, and to date funded three large research projects:
• Efficient, Compact, and Smooth Variable Propulsion Motor
awarded to the University of Minnesota

RESEARCH CHALLENGES
create a new generation of academic research faculty for fluid power. • Hydraulic Electric Architectures for Mobile Machines awarded
The CCEFP’s most recent funded projects include: to the University of Minnesota

• Polymer-Enhanced Fluid Effects on Mechanical Efficiency
of Hydraulic Pumps awarded to the Milwaukee School
of Engineering and the University of California at Merced
• Seamless Electric to Hydraulic Conversion awarded to
the University of Minnesota and the University of Wisconsin
• Individual Electro-Hydraulic Drives for Off-Road Vehicles
awarded to Purdue University
These projects represent just a small portion of the research
collaborations between the fluid power industry and its
academic partners.

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DRIVING GROWTH, ADVANCING CHANGE

Today’s fluid power technology delivers essential value to key industries

throughout the U.S., spurring advancement for the industry.

Tomorrow’s fluid power technology has the potential to promote even greater
productivity, efficiency and sustainability, driving advancement for the world.

To learn more, visit www.nfpa.com

National Fluid Power Association

6737 West Washington Street | Suite 2350
Milwaukee, WI 53214
(414) 778 3344