Helios Technologies is reconfiguring its operations for hydraulic component manufacturing.

Helios Technologies Restructuring Hydraulics Segment

Jan. 16, 2023
The company will consolidate manufacturing for its hydraulics products and create two Regional Operational Centers of Excellence.

Helios Technologies Inc. plans to form two new Regional Operational Centers of Excellence (CoE) for its hydraulics business. To do so, it will consolidate manufacturing at two of its facilities. 

The company's Mishawaka, IN, facility—a 72,000 sq. ft. building gained from the acquisition of hydraulic manifold developer Daman Products Co. is currently undergoing an expansion. Over 50,000 sq. ft. will be added to create the Hydraulic Manifold Solutions CoE. 

At the Indiana facility, Daman products will continue to be manufactured as well as the integrated package business from Faster Inc., another hydraulics brand under the Helios umbrella. The company also plans to house manifold and integreated package assembly operations from the Sun Hydraulics brand at the facility. 

Manufacturing for the company's quick release couplings (QRC) will be moved to the current cartridge valve technology location in Sarasota, FL. This will create the Hydraulic Valve and Coupling Solutions CoE. 

In the company's press release announcing its CoE plans, Josef Matosevic, President and Chief Executive Officer of Helios stated: 

“The restructuring of our Hydraulics segment in the Americas into two Centers of Excellence is a major step in our journey to leverage our long history in hydraulics with our acquisitions. With this move, we expect to drive greater operational efficiencies, quality control and enable technology enhancements that create advanced hydraulic solutions for our customers. Importantly, we can further our expertise in hydraulics and electronics to exceed the boundaries of today’s approach to motion control by expanding our unique pure-play position in the industry.

“We believe that our two new Centers of Excellence, combined with the strength of innovation in our quick release coupling and hydraulic valve operations in Italy, create the platforms that accelerate our drive to being a global leader of electro/hydraulic solutions. We engineer motion control solutions for applications in our targeted markets that require high degrees of precision, reliability, and durability. The integration and consolidation serve to strengthen our ‘in the region, for the region’ strategy, promote enhanced R&D collaboration, and enable expanded capacity to support our future growth.”

Strong Markets, Product Diversification

Helios reported strong financial results throughout 2022 with its revenues up 6% as reported in its third quarter financial results. Hydraulics remains a large part of the company's business, hence investing in its new CoEs, and demand for these products is expected to remain positive.

The company reports industrial machinery, recreational and mobile equipment helped drive sales during the quarter. These markets, key users of hydraulic components, are expected to remain positive; mobile equipment, such as construction machinery, for instance will benefit from the U.S. infrastructure bill which will help drive demand for equipment and the components used in it. 

Helios has also worked to diversify its portfolio through its various acquisitions, enabling it to offer a range of hydraulic and electronic components which it says has aided the company's continued growth. 

Most recently, the company brought together its hydraulics and electronics expertise with the introduction of the Sun Hydraulics ENERGEN cartridge valve. The valve converts hydraulic flow into electric energy, helping to reduce energy loss common with hydraulic components and meet the needs of the growing electrification space. 

READ MORE: The Intersection of Hydraulics and Electrification

The company anticipates the relocation of its manufacturing operations to be completed by the third quarter of 2023. 

About the Author

Sara Jensen | Executive Editor, Power & Motion

Sara Jensen is executive editor of Power & Motion, directing expanded coverage into the modern fluid power space, as well as mechatronic and smart technologies. She has over 15 years of publishing experience. Prior to Power & Motion she spent 11 years with a trade publication for engineers of heavy-duty equipment, the last 3 of which were as the editor and brand lead. Over the course of her time in the B2B industry, Sara has gained an extensive knowledge of various heavy-duty equipment industries — including construction, agriculture, mining and on-road trucks —along with the systems and market trends which impact them such as fluid power and electronic motion control technologies. 

You can follow Sara and Power & Motion via the following social media handles:

X (formerly Twitter): @TechnlgyEditor and @PowerMotionTech

LinkedIn: @SaraJensen and @Power&Motion

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