Fluid power engineering solutions are systems that use fluids (liquids or gases) to transmit and control power. These solutions are often seen in the industrial, mobile, and aerospace industries because of their ability to create large amounts of force in small designs. 

But as a manufacturer in 2025, where should you source your fluid power systems? Is buying American-manufactured solutions still the smartest move? Or should you consider dual-sourcing manufacturers?

Many manufacturers use a multi-sourcing strategy, which uses multiple suppliers across many regions, not a single location, making the final product “assembled in the USA” with domestic and foreign parts.

In this article, we will cover the advantages of using a multi-sourcing strategy and offer tips on how to prepare for the fast-changing economy.

What ARE THE ADVANTAGES OF AMERICAN-MANUFACTURED, DUAL-SOURCED FLUID POWER PRODUCTS?

Several key advantages stand out when considering American-manufactured fluid power products supported by dual sourcing. These advantages have a direct impact on your company’s efficiency, cost control, and longevity. Advantages to consider include:

• Highest Quality Products
• Supply Chain Resilience
• Tariff Avoidance
• Cost Effectiveness
• Support of the Local Economy
• Environmental Consciousness
• Accessibility of Onshore and Offshore Production

hIGHEST QUALITY PRODUCTS

When a manufacturer has access to many different suppliers around the globe, products can be assembled with the highest quality components, no matter where they're produced. Components built to meet the highest standards for productivity, longevity, and efficiency lead to better results and smoother operations. Manufacturers can even conduct tests to ensure the components are of premium quality.

Supply chain resilience

The start of the pandemic in 2020 revealed how vulnerable single-source strategies can be. As a manufacturing company, some things are simply out of your hands when it comes to your supply chain. When that chain is disrupted, it can affect many aspects of your workforce, including employee morale, product quality, and customer relationships.

By utilizing a dual sourcing strategy, you minimize the risk of disrupting the supply chain. Multi sourcing helps control the impact of unpredictability that can happen with parts production. This flexibility allows for consistency in your manufacturing and helps you meet customer demands more efficiently.

tariff avoidance

Tariffs have created significant uncertainty for businesses across industries, including fluid power, making it increasingly challenging to plan and forecast effectively. Recently, rising tariffs have driven up costs for manufacturers, which ultimately results in higher prices for consumers. Having a diversification of suppliers in different locations gives you a better chance at avoiding the impact of tariffs altogether. 

Cost-effectiveness

Buying internationally is a cost-effective approach for a manufacturer. It reduces your dependency on one supplier. By going with a multi sourcing approach, you will have the opportunity to find the best parts at the best price.

Dual sourcing gives you a competitive edge by strengthening your supply chain and providing multiple sourcing options. This approach reduces the risk of disruptions in the manufacturing process even if one source is unable to supply the necessary parts.

Support the local economy

Dual sourcing still allows you to support your local economy, giving you the choice of buying domestically and internationally. Should you choose to shop domestically, this can have a more long-lasting effect on your community. Purchasing American-made fluid power products supports the local economy by creating jobs and reinvesting money back into the community. Here are a few ways buying domestically helps achieve that: 

• Creates jobs: Buying domestic goods keeps individuals in your community employed, as well as creates new jobs as sales increase. Even more jobs are generated through the ongoing service, support, and maintenance required for American-made products.
• Encourages consumer spending: In turn, when people have stable jobs, they feel more apt to increase customer purchases, putting money right back into the community. 
• Drives innovation: Increased sales fuel competition, encouraging manufacturers to develop higher-quality, cutting-edge products.
• Strengthens economic stability. By stocking American-made products, you reduce reliance on international sourcing. This not only enhances supply reliability but also minimizes the risk of disruptions during global crises.

Environmental Consciousness

Buying American-manufactured fluid products reduces your carbon footprint drastically. When you dual source, it eliminates the need for cargo shipping all of your products, which is one of the biggest contributors to carbon emissions. Plus, American-manufactured products have strict environmental guidelines with the Environmental Protection Agency (EPA), ensuring factories stick to environmentally responsible production methods.

Accessibility of onshore and offshore production

Onshore production refers to manufacturing within the same country, while offshore production is when the product is manufactured in a different country. Both offer advantages.  

Onshore production enables shorter lead times and more stable supply chains, helping reduce the risk of disruptions and delays. Costs can remain more stable with the avoidance of tariffs and cargo shipping charges. Plus, you get a little more flexibility with last-minute changes.

Offshore production offers lower costs and better access to raw materials, as well as a broader talent pool for specialized skills. It doesn’t pigeonhole you with one supplier. You can pivot based on availability and market demand if need be.

can you prepare for rising fluid power product costs?

Being proactive is essential in keeping your goals attainable and helps you better manage your budget when unpredictable things happen. Below are some strategies you can implement:

• Maintaining equipment regularly: This extends the life of your existing fluid power systems. Plus, it reduces the risks of costly breakdowns in the future.
• Replacing your outdated hydraulic equipment: This helps you avoid any unplanned downtime, which disrupts production schedules. 
• Training employees properly: Overall efficiency and production quality are improved when your workforce is educated correctly. 

Taking a long-term approach can make dual sourcing an effective strategy for your business.

ready to purchase a hydraulic power solution?

Buying dual-sourced fluid power products improves product quality, supply chain resiliency, and cost-effectiveness, while still giving you the opportunity to support your local economy, amongst many other advantages. Challenges may arise with increased coordination and administrative work, but preparing ahead of time allows you to proceed with minimal disruption in your manufacturing. 

We are here to offer support in deciding what will work best for your company. Our team can help you navigate all of the options when it comes to your hydraulic power solutions. Contact us to learn more about dual-produced fluid power solutions and how we can help serve your business.