Combine NFPA Resources to Create U.S. Hydraulic Shipment Projections by End Use Market

As the leading source of fluid power market information in the U.S., NFPA offers a variety of industry analysis and hard data to help members understand trends and plan their next move. While offering such a range of resources alone can be helpful to most members, for some, pulling together and interpreting this information can be daunting. This series of articles provides some clarity by showing examples of combining NFPA resources to create more effective analysis.

Creating U.S. hydraulic shipment projections by end use market can help you better anticipate hydraulic shipment demand. Doing so requires specific types of data: an annual total for U.S. hydraulic shipments, forecast for U.S. hydraulic shipments, and weighted allocation of U.S. hydraulic shipments by end user market, all of which you can find in NFPA resources. The best way to do this is to combine the annual shipments data in The Annual Survey of Fluid Power Manufacturers with both the projections from the NFPA Forecast Report: U.S. Customer Markets and the end user market weights from NFPA’s Customer Market Survey as demonstrated below.

In the example above, we combine the 2019 annual U.S. hydraulic shipments total of $11.4 bn from the NFPA’s Annual Survey of Fluid Power Manufacturers with the 2020 through 2022 U.S. hydraulic shipment forecast from the NFPA Forecast Report: U.S. Customer Markets report to project estimates of annual U.S. hydraulic shipments. The “U.S. Hydraulic Shipments by Year” graph displays the results. These estimates not only help us properly anticipate future U.S. hydraulic shipment totals, but also apply to the weighted allocations for key hydraulic end use markets (also shown above) from NFPA’s Customer Market Survey to determine U.S. hydraulic shipment projections by end use market. Projected annual U.S. hydraulic shipment estimates show a strong decline in 2020 due to COVID-19’s impact on U.S. machinery markets. An early 2021 business cycle low will lead into a strong growth trend for both 2021 and 2022, reaching annual totals of $9.5bn and $10.8 bn respectively as many key end use markets recover from the COVID-19 pandemic.

In the example above, we apply the weight allocations for key hydraulic end use markets found in NFPA’s Customer Market Survey to the 2019 actual and 2020 through 2022 projected annual U.S. hydraulic shipment totals we calculated to narrow the focus in on how U.S. hydraulic shipments may be segmented in the years to come. This type of data analysis can be an invaluable tool in your strategic planning process by helping you properly gauge future demand of U.S. hydraulic shipments by end use market.

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Access NFPA Market Information Resources
NFPA’s timely and accurate industry statistics help members understand trends and anticipate change with a variety of industry reports, forecasts, and data sources for fluid power products, customer markets, and economic indicators.

Questions and inquiries about NFPA’s Market Information Resources can be directed to Eric Armstrong at earmstrong@nfpa.com or (414) 778-3372.

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