Changing demands reshape hydraulic components

In a world of shrinking margins, fierce competition, and increasing regulations, equipment owners want nothing less than stellar performance from their equipment.

New technology helps off-highway OEMs respond to equipment-owner demands for faster, cheaper, and more reliable vehicles. So do new business practices: most OEMs are compelling suppliers to re-examine their technologies and practices.

“OEMs are trying a purchase strategy much like that used by the automotive people where you have Tier 1 and Tier 2 suppliers,” said Joe Maher, Marketing Manager, Poclain Hydraulics. “The idea is that if they can consolidate their suppliers, those suppliers (will) have more volume, which should generate some cost reduction. And because you're dealing with fewer suppliers, you've saved some administration cost, as well.”