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The fluid power industry, like many others, is facing challenges due to the recent global economic slowdown. For OEMs who rely on hydraulic components, this downturn emphasizes the need to adapt quickly to stay competitive, maintain profitability, and drive growth.  

To help your business navigate the slowdown, we’ve outlined four key strategies to build resilience, boost efficiency, and position your company for long-term success.  

Diversify Product Offerings for Market Longevity  

Diversifying your product lineup has never been more important. Expanding your offerings can reduce risks from market fluctuations and help you stay competitive in evolving industries. Here’s how you can future-proof your business:  

• Consider Adding Electronic Controls to Your Products: Integrating electronic controls into your product lineup is a smart way to keep up with the growing demand for electro-hydraulic systems in mobile markets. By offering high-efficiency control solutions like precision flow valves and customized controls, you can attract a wider customer base while staying ahead of the shift toward automation.  

• Focus on Energy-Efficient Systems: Sustainability is a major focus for industries like agriculture and construction, which are under pressure to meet environmental goals. Energy-efficient solutions, such as high-efficiency hydraulic pumps, can help your business cater to these needs while positioning you as a leader in the green technology market.  

By offering innovative solutions, you’ll tap into new market segments and reduce reliance on traditional products. Diversifying your product lineup ensures your business stays competitive, even as market demands change.

Enhance Customer Service to Cultivate Loyalty  

Exceptional customer service is the key to building strong business relationships, especially during challenging times. Here are three proven strategies to improve customer retention and satisfaction:

• Provide Expert Technical Support: Help your customers get the most out of your products with tailored technical support. Equip your team with product training and updated technical guides, so they can quickly troubleshoot issues and optimize system performance. By offering personalized assistance, you add value to every interaction.

• Stay Proactive with Communication: Keep your customers informed by anticipating their needs. Send restocking notifications, reminders for maintenance contracts, or updates on new products and services. Proactive communication builds trust and creates a lasting partnership.

• Ensure Faster Turnaround Times: Reduce delays and improve customer satisfaction by streamlining your processes. Offer fast shipping options, such as 2-day delivery, to get your products to customers quickly and efficiently.

By focusing on technical expertise, proactive engagement, and fast service, your business establishes itself as a reliable partner. Prioritizing customer service not only improves retention, but also helps you stand out in a competitive market.

Upskill Your Workforce  

A business downturn is the perfect time to focus on workforce development. By upskilling your employees, you can foster innovation, stay competitive, and adapt to changing market demands. Here are three key strategies to invest in your team:  

• Cross-Training Programs: Cross-training employees enhances operational flexibility and promotes team collaboration. Cross-trained teams are better equipped to solve problems across departments, leading to faster decision-making and improved efficiency.  

• Industry-Specific Certifications: Encourage your employees to earn certifications relevant to your industry. Certified staff can provide expert insights and tailored recommendations, improving customer satisfaction and building trust.  

• Workshops on Emerging Technologies: Stay ahead of the curve by offering training in artificial intelligence (AI), machine learning, and the Internet of Things (IoT). Employees skilled in these technologies can create innovative solutions that meet evolving customer needs and market trends.  

Upskilling your workforce is an investment in your business's future. Equip your team with the tools they need to succeed, and you’ll be ready to face any challenge.

Focus on Operational Efficiency  

Reducing overhead costs without sacrificing quality is key to maximizing profit margins. To help you run your business more efficiently, here are two proven ways to streamline operations:  

• Optimize Inventory Management: Use predictive inventory management software to keep your shelves stocked with best-selling items, while avoiding excess inventory of slow-moving products. This strategy minimizes waste and saves money, helping boost productivity and cut costs.  

• Leverage Data-Driven Decision Making: Rely on real-time data from advanced ERP (enterprise resource planning) systems to monitor expenses, track performance metrics, and identify areas for improvement. By using data effectively, you can improve operational efficiency and reduce unnecessary business costs.  

Implementing these strategies will help you increase profitability while maintaining high-quality operations.

Building a Resilient Future  

Navigating changes in the fluid power market requires adaptability, innovation, and strategic planning. To stay ahead during a slowdown, businesses can focus on diversifying product lines, strengthening customer relationships, upskilling employees, and streamlining operations. These strategies not only help overcome challenges, but also prepare your business for strong growth when the market recovers.  

At Bailey International, we are more than just a hydraulic components supplier—we’re your trusted partner in growth. We specialize in providing high-quality hydraulic components, custom hydraulic solutions, and expert support tailored to meet the unique needs of OEMs and businesses in the fluid power industry.  

Whether you’re searching for durable hydraulic cylinders, hydraulic pumps, or custom engineering, our team is here to help you succeed. Let us support your profitability and adaptability in this ever-changing market.  

Contact Bailey International today to explore reliable, cost-effective solutions that drive your business forward.

A hydraulic system is a closed system that converts pressurized fluid to mechanical energy. Hydraulic fluid is moved by pumps through control valves and on to mechanical actuators like hydraulic cylinders or motors, which then use the pressure to move implements such as tractor buckets, excavators, and lift cranes.

Components of a Hydraulic System

A hydraulic system is composed of various components to keep the fluid under the desired pressure, clean, and moving in the right direction. Below is an overview of those components

Reservoir Tank

The hydraulic tank acts as a reservoir, holding fluid, and is connected directly to the pump. It allows air bubbles to dissipate and contamination particles to settle, as well as allows the oil to cool while it is not circulating. A vented filter cap controls air flow, and a filter or strainer keeps contaminants out of the hydraulic fluid.

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Pump and Engine

The hydraulic pump moves liquid from the reservoir tank through the system driven by an engine. Pump designs are typically two-stage, PTO or manual hydraulic, while the engine can be gas, diesel or electric depending on access to power, the horsepower needed and mounting style.

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Pressure Gauges and Relief Valve

Once liquid is circulating, gauges can be used virtually anywhere in the system to monitor pressure. In addition, a relief valve controls the fluid pressure that powers the hydraulic cylinder; excess fluid is returned to the reservoir tank. This prevents pressure build-up and potential damage to equipment.

Valve Assembly

The hydraulic valve assembly controls the direction, pressure and flow rate of fluid through a hydraulic circuit. It regulates the speed of motors and movement of cylinders. Directional control valves are most common, controlling fluid flow from the pump to the cylinders and other system components.

Cylinder

A hydraulic cylinder is an actuator that creates linear movement by converting hydraulic energy back to a mechanical movement – so it is the component that drives the work performed by mobile equipment. Cylinders can be used to lift, push, pull and press loads that require exceptional force.

Motor

Similar to cylinders, motors are actuators that converts hydraulic pressure and flow into movement, but it’s converted into torque and angular displacement (rotation) rather than linear motion. The amount of pressure and displacement of a motor will determine how much torque is produced while the amount of flow will determine the speed.

Flow Control Valve

The purpose of a flow control valve is to regulate the flow rate to motors and cylinders, thereby regulating the speed of those components.

Fluid Cooler

This unit removes the excess heat generated from the hydraulic fluid and helps to keep the temperature within a limited range before returning to the reservoir. Without proper cooling, the hydraulic system could overheat, causing component damage. Keeping the system properly cooled also extends hydraulic fluid life.

A hydraulic cylinder is made up of a steel barrel, a piston connected to a piston rod that moves back and forth, and mounting accessories. A cylinder creates linear movement by converting hydraulic energy back to a mechanical movement. They are used in equipment to lift, push, pull and press loads that require exceptional force.

Hydraulic cylinders can be double-acting (pressurized oil moves it in either direction) or single-acting (pressurized oil extends the rod in one direction, and gravity pushes it back to its natural position).

To properly select a cylinder there are several factors to consider:

• Bore size (tube diameter) which determines how much force can be delivered at a given oil pressure
• Stroke, or how far the rod extends
• Piston rod diameter which is critical since it must apply that force without bending or buckling
• Speed determines the gallons per minute needed from the hydraulic pump and determines the correct port sizes
• How the cylinder will mount

We have hydraulic formulas and hydraulic calculators to make sure your cylinder is sized properly for the application. We at Bailey International are your trusted source for hydraulic products, system design help, as well as education and general support. After the sale, it’s the service and support that count!a

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