Originally published in Power & Motion
Bosch Rexroth, ContiTech, and other fluid power companies are expanding their footprints in North America to better serve regional customers through enhanced supply chains and reduce lead times.
Efforts to reshore and nearshore manufacturing, warehousing and other operations continue to grow in a range of industries, including the hydraulics and pneumatics sector.
While providing more localized production and services is not a new concept, there certainly has been a ramping up of investments for more ‘in the region, for the region’ manufacturing and other offerings. Producing and shipping goods in closer proximity to customers offers many benefits such as reduced shipping costs and more timely delivery.
The COVID-19 pandemic played a part in the uptick of nearshoring and reshoring in recent years as it caused many to re-evaluate their supply chains and bring production closer to customers. Tariffs put in place by the Trump administration — as well as retaliatory ones from impacted countries — have further prompted many to re-evaluate the location of their production facilities to minimize the potential cost increases associated with the tariffs.
And with the passage of the administration’s One Big Beautiful Bill (OBBB) Act which includes some incentives for expenses related to new manufacturing equipment and facilities, some companies may be even more incentivized to establish more domestic production in the coming years.
Several companies in the fluid power industry have announced expansion plans and new manufacturing facilities in recent months to help them better serve customers, particularly those in or near the North American market, which we’ve highlighted in this piece.
Why does this buildup of localized operations matter? Well, for one it helps demonstrate the continued value and growth potential of the fluid power industry. PIRTEK USA, for example, announced strong growth in the second quarter of 2025 due to rising demand for its hydraulic and industrial hose services. The company added several new service locations during the quarter in various parts of the U.S., better enabling it to serve customers in those markets.
And as the fluid power industry and other sectors establish more facilities, there is likely to be increased demand for hydraulics and pneumatics — for use in the machines building the facilities as well as those inside of them producing and moving goods.