The new reality for UK hydraulics and pneumatics EDITOR’S COMMENT www.hpmag.co.uk HYDRAULICS & PNEUMATICS April/May 2026 3 Energy policy, skills development and trade frameworks are still too often addressed separately, limiting effective support for a sector where these factors are closely interconnected. ‘ ’ For years, the UK hydraulics and pneumatics sector has operated under familiar pressures such as rising energy costs, persistent skills shortages and uneven investment across manufacturing and distribution. Those challenges remain, but they no longer fully capture the operating environment. It is now less cyclical, more structural and increasingly shaped by global instability. The war in Ukraine exposed vulnerabilities in supply chains that underpin the fluid power industry. Ongoing tensions in the Middle East have reinforced that position, particularly where they affect energy markets and shipping routes. For a sector that relies on internationally sourced components such as valves, fittings, seals, electronics and control systems, this has led to longer lead times, reduced visibility and less certainty around cost and availability. Energy remains central. Hydraulic manufacturing processes including machining, heat treatment and testing are energy intensive, while pneumatic systems, especially compressed air, have long been associated with efficiency challenges. Volatility in oil and gas prices feeds through to electricity and fuel costs and also affects key inputs such as steel, aluminium and petrochemical based materials used in seals, hoses and lubricants. The result is sustained pressure on margins and greater difficulty in forecasting costs. Supply chains have also shifted in quieter but important ways. Many UK firms operate within complex distribution networks and often rely on European partners alongside global suppliers for specialist parts. Disruption linked to logistics constraints, customs friction and upstream production delays has made just in time delivery less reliable. In response, businesses are holding more stock, reassessing supplier risk and in some cases exploring alternative or additional sources. These changes are gradual, but they reflect a clear move towards resilience. There is also a gradual change in technology and customer expectations. Electrification, servo driven systems and digitally controlled solutions are increasingly competing with traditional hydraulic and pneumatic applications in some use cases, particularly where energy efficiency and precision are priorities. For pneumatics, the inefficiency of compressed air is under closer scrutiny as end users focus more closely on energy consumption and carbon reduction. This is not displacing fluid power, but it is influencing system design and investment decisions. At the same time, structural challenges within the sector persist. Skills shortages remain acute, particularly among experienced service engineers, system designers and technicians. Much of the industry’s value lies in installation, maintenance and repair, where responsiveness and technical expertise are critical. An ageing workforce and a limited pipeline of new entrants continue to constrain capacity. Taken together, these pressures point to a lasting change in how the sector operates. This is not a series of isolated shocks, but a layering of factors that raise the baseline level of risk. In this context, resilience is being repriced. Holding additional inventory, investing in supply chain visibility, strengthening supplier relationships and developing in house capability are no longer seen purely as costs, but as necessary trade-offs to maintain reliability and service levels. The current environment presents both constraint and opportunity for the sector. Firms that combine technical expertise with operational flexibility, supported by better data and adaptable supply chains, are better positioned to manage volatility, while those reliant on rigid sourcing or limited visibility may see competitiveness erode over time. However, the policy environment has yet to keep pace. Energy policy, skills development and trade frameworks are still too often addressed separately, limiting effective support for a sector where these factors are closely interconnected. Aaron Blutstein Editor
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