Fluid Power Pumps and Motors

Manufacturers in this industry produce pumps and drives for hydraulic and pneumatic power mechanisms, primarily for use in industrial and aerospace applications. Because fluid power devices can exert massive amounts of controlled pressure, they are commonly utilized to power aircraft landing gear, industrial presses and lifts, heavy earth-moving equipment, and other heavy-duty equipment. They also are integrated into smaller machines that require precise power transfer.

Fluid power systems combine cylinders, couplings, valves, pumps, and motors. A positive displacement hydraulic pump, such as a piston pump, is the part of the system that delivers the oil required to drive or control hydraulic machinery. It creates pressure in a series of short bursts. In contrast, impulse pumps, such as the centrifugal pump, deliver steady, continuous oil pressure with less vibration. Hydraulic motors typically operate in conjunction with pumps and are often used to precisely vary the rotational speed of various machines.

Pascal's law, which states that pressure exerted upon a liquid is evenly transmitted in all directions, was posited in the mid-1600s. However, pumps that could efficiently deliver high and controlled pressure were not introduced until the 1800s. Not until the mid-1900s, in fact, did hydraulic pumps and motors become a common means of power transfer. By 1987, the first year in which this industry was separately classified by the U.S. government, sales of fluid power pumps and motors approached $1.5 billion. Although industry revenues increased to nearly $1.8 billion by 1990, a recession halted sales and earnings growth for most competitors throughout the early 1990s.

Industry participants in the mid-1990s benefited from a moderate upturn in the U.S. and global economy that boosted pump and motor demand in the industrial sector. Unfortunately, vital aerospace and defense markets remained depressed and offered little hope for gains in the near future. The most successful competitors countered market malaise with productivity gains and the introduction of cutting-edge, high-performance equipment. Many also looked to increased demand in overseas markets for high-tech U.S. pumps and motors. The industry experienced rapid growth in 1995, as the value of all product shipments increased 14 percent from 1994 figures, to $2.0 billion, which was up 36 percent from 1992.

In 1997, sales reached $2.6 billion. Total employment was slightly more than 15,000, with almost 70 percent involved with production. The average wage was $16 per hour. The states of Illinois, Michigan, and Ohio were the leading employers. Almost 73 percent of all establishments had 20 or fewer employees. Of total sales, 41 percent went to reciprocating pumps used in non-aerospace applications; only 12 percent went to pumps and motors used in the aerospace industry.

According to the National Fluid Power Association (NFPA), the U.S. market for all fluid power products grew by three percent in 1998 to $13.5 billion. The fluid power industry grew 58 percent from 1992 to 1997, with exports of such products reaching almost $1.3 billion in 1997. Though the industry did not experience as much growth in 1998 as 1997, some manufacturers expected continued growth due to strong global demand in consumer products, as well as demand for capital equipment in Eastern Europe and South America.

Traditionally, about half of the fluid power market has gone to hydraulic power components, according to Frost & Sullivan. This market was worth $6.4 billion in 1997 and continued to grow through the 2000s as a result of end-user capital spending and product replacement. NFPA reported that in 2002, hydraulic pumps captured 72 percent of the market as compared with pneumatic's 28 percent. Seventy-three percent of the fluid power industry as a whole was due to non-aerospace markets. Fifty-five percent of the fluid power market was due to non-aerospace hydraulics, with the rest divided between aerospace hydraulics, non-aerospace pneumatics, and aerospace pneumatics.

About 128 companies operated 157 establishments in the industry in 2007. Total shipments were valued at approximately $3.7 billion, up from $2.5 billion in 2001, according to the U.S. Census Bureau.

Although the industry employed 13,202 workers in 2007, including 8,816 production jobs, long-term employment prospects were bleak, according to the U.S. Bureau of Labor Statistics. Increased foreign competition and continued productivity gains, through automation and restructuring, were projected to be factors in workforce reduction for labor and white-collar workers alike.

In the late 2000s, consolidation of the industry increased as acquisitions continued. Other challenges facing the industry included product standardization, a demand for higher product quality and faster product delivery, lack of qualified workers, environmental concerns, leakage problems, and successful integration of electronic controls.

Imports continued to outweigh exports in the industry. The NFPA reported that in 2009 imports were worth $2.98 billion. Germany was the largest import market, accounting for $581.7 million, or 20 percent of all industry imports, followed by Canada (16 percent), Japan (12 percent), China (nine percent), and Mexico (eight percent). Value of industry exports in 2009 reached $2.60 billion, with Canada accounting for $506.3 million, or 19 percent of exports. Other top markets for exports were Mexico (11 percent), Germany (eight percent), China (seven percent), and the United Kingdom (six percent). The pump market in Asia was expected to have the fastest growth rate throughout the early twenty-first century decades, as new water and wastewater treatment plants were built.

One of the newest technological trends in the industry as the second decade of the twenty-first century began was the combination of fluid power and electronics to create "smart" pumps, valves, and actuators. According to the NFPA website in 2010, "On assembly lines, smart pneumatic components can now 'talk' to personal computers and programmable logic controllers through networks," relaying such information as product specifications, date of manufacture, and working status (for example, whether they need replacement). Other new developments included the use of water and air hydraulics, advanced sealing and sound insulation components, and more powerful pumps.

One of the industry leaders in 2010 was ITT Corp. of White Plains, New York. The company reported revenues of $10.9 billion in 2010, up more than $6.0 billion from a decade earlier. About 40,200 workers were spread across three divisions: defense, fluid technology, and fluid and motion control. Flowserve Corp. of Irving, Texas, reorganized in 2010 into divisions: the Flow Control Division and the Flow Solutions Group. With 15,000 employees, the company had sales of $4.3 billion and clients in more than 50 countries around the world in 2009. Parker Hannifin Corp. and Eaton Corp., both in Cleveland, Ohio, and Carne Co. of Stamford, Connecticut, were large, diversified companies with interests in fluid pump and systems manufacturing.