Efforts to reshore and nearshore manufacturing, warehousing and other operations continue to grow in a range of industries, including the hydraulics and pneumatics sector.
While providing more localized production and services is not a new concept, there certainly has been a ramping up of investments for more ‘in the region, for the region’ manufacturing and other offerings. Producing and shipping goods in closer proximity to customers offers many benefits such as reduced shipping costs and more timely delivery.
The COVID-19 pandemic played a part in the uptick of nearshoring and reshoring in recent years as it caused many to re-evaluate their supply chains and bring production closer to customers. Tariffs put in place by the Trump administration — as well as retaliatory ones from impacted countries — have further prompted many to re-evaluate the location of their production facilities to minimize the potential cost increases associated with the tariffs.
And with the passage of the administration’s One Big Beautiful Bill (OBBB) Act which includes some incentives for expenses related to new manufacturing equipment and facilities, some companies may be even more incentivized to establish more domestic production in the coming years.
Several companies in the fluid power industry have announced expansion plans and new manufacturing facilities in recent months to help them better serve customers, particularly those in or near the North American market, which we’ve highlighted in this piece.
Why does this buildup of localized operations matter? Well, for one it helps demonstrate the continued value and growth potential of the fluid power industry. PIRTEK USA, for example, announced strong growth in the second quarter of 2025 due to rising demand for its hydraulic and industrial hose services. The company added several new service locations during the quarter in various parts of the U.S., better enabling it to serve customers in those markets.
And as the fluid power industry and other sectors establish more facilities, there is likely to be increased demand for hydraulics and pneumatics — for use in the machines building the facilities as well as those inside of them producing and moving goods.
Bosch Rexroth Breaks Ground on Facility Expansion in Pennsylvania
Bosch Rexroth recently celebrated the groundbreaking for a 50,000 sq. ft. warehouse expansion at its facility in Bethlehem, PA. The expansion is expected to help improve lead times for the company’s hydraulics and other technologies as well as support growth in the Lehigh Valley region.
This facility manufactures hydraulic components and systems for use in a wide range of applications for customers in North America; it is one of several facilities the company has in the region. Bosch Rexroth will be moving its existing logistics center to another part of the Bethlehem campus where it will be conveniently located next to the primary Industrial Hydraulics operations site, enabling more efficient movement of finished goods.
The company intends to create a modern, state-of-the-art warehouse facility with this new expansion that will help ensure productive operations. Among the advanced technologies it intends to install is an AutoStore system, an automated storage and retrieval system the company anticipates will increase storage capacity 50%. Bosch Rexroth foresees the new warehouse expansion enhancing its ability to serve customers in the North American market through improved lead times, flexibility and efficiency.
“This new addition not only reinforces Bosch Rexroth’s long-term dedication to efficiently serving its customers, but also its commitment to Bethlehem and the Lehigh Valley,” said Rafael Paredes, Bethlehem Site Plant Manager, Bosch Rexroth, in the company’s press release announcing the facility expansion. “We’re proud to grow our operations here, as we have for nearly 60 years, and this facility will play a critical role in our ability to deliver innovative solutions for our customers.”
The company expects construction of the warehouse to be completed in the second quarter of 2026 and be operational by fall of that year.
ContiTech Begins Production at New Manufacturing Facility in Mexico
Continental’s group sector ContiTech has begun production at the company’s new hydraulics manufacturing facility in Aguascalientes, Mexico. The 900,000 sq. ft. site will manufacture high-performance hydraulic hoses for a range of industrial and mobile applications.
The company said in its press release announcing the new manufacturing facility that it was built to help strengthen ContiTech’s local supply chains, increase regional production capacity and bring fluid power solutions closer to customers in the region.
Like many companies, Continental takes an ‘in the region, for the region’ approach to its global manufacturing operations. The new facility in Aguascalientes aids this effort by producing hydraulic components engineered to meet the specific demands of customers in the Americas.
“By expanding our manufacturing footprint in the Americas, we are not only strengthening supply chain resilience and reducing lead times, but we are also reinforcing our role as a trusted, responsive partner for our customers throughout the region,” said Philip Nelles, Member of the Continental Executive Board and CEO of the ContiTech group sector, in the company’s press release.
The new manufacturing facility in Aguascalientes will work in alignment with ContiTech’s existing manufacturing facility in Norfolk, NE, to provide production flexibility, increased responsiveness and operational efficiency for customers in the Americas region. Per the company, the two locations will work together to balance volume, technology and lead times across a coordinated regional network, ensuring customers get the hydraulic products they need when they need them.
Production at the facility will ramp up gradually and the first customer deliveries are expected to begin in the fourth quarter of 2025.
Hengli Opens New Factory in Mexico
In early June, Hengli Hydraulics held a grand opening ceremony for its newest facility in Monterey, Nuevo Leon, Mexico. The company stated in its press release announcing the new facility opening that once fully operational, it will help the company provide products for the local market and surrounding areas.
Local officials in attendance at the opening ceremony noted the importance of the facility to the local economy as well as the benefits it will provide to enhancing local supply chains and strengthening development of Mexico’s construction machinery industry and other sectors served by the hydraulic components Hengli offers.
The new Hengli facility covers an area of about 141,000 sq. m and will produce hydraulic components for use in construction equipment, cranes, aerial work platforms and other machine types. Per the company, localizing production will help provide better service to customers in the region.
Hengli’s new facility in Mexico is intended to be its manufacturing center in the Americas, and is conveniently located for easy shipments to customers in North America as well as Central and South America.
Mexico has long been a destination of choice for manufacturers to establish operations because of its skilled and cost-efficient workforce and proximity to trading partners, among many other factors. As nearshoring efforts have increased in recent years, Mexico has continued to be a desirable location for building manufacturing facilities.
Motion Opens Service Branch in Quebec
Motion Industries Inc. has opened a new sales branch in Quebec, Canada. Opening this new location will enable the company to more easily serve customers in Northern Quebec.
The facility joins a network of about 70 across Canada which provide a range of services to customers in the region. Services offered by the new branch in Quebec include product order fulfillment as well as engineering and repair services for pneumatics, hydraulics and power transmission systems. Industry training opportunities are also available for customers.
“By establishing a foothold in Northern Quebec, we can now provide local customers with faster, more responsive service to help keep their facilities running smoothly,” said James Howe, President of Motion, in the company’s press release announcing the opening of the new branch.
Trelleborg Expanding and Remodeling Innovation Center
Trelleborg Sealing Solutions is undertaking a significant expansion of its Innovation Center in Minnesota. According to the company, the expansion will allow it to take on more projects as well as accelerate design and development for customers.
The new Innovation Center will be moved from its current location in Plymouth to a purpose-built space in nearby Delano that will encompass over 45,000 sq. ft. (4,181 sq. m).
A remodel of the center’s tool shop and room for expansion will be a key part of the project. In addition, 40,000 sq. ft. (3,716 sq. m) will be dedicated to new construction for a visitor center, high-end Swiss machining, injection molding and increased space for an automation laboratory.
The newly expanded Innovation Center will enable Trelleborg to enhance collaboration with customers in the region while also speeding up time to market for their desired products.
“The visitor center will be a collaborative, high-tech meeting area where customers can brainstorm on project ideas alongside our experts,” said Chris Tellers, Innovation Center and New Product Development Director, in the company’s press release announcing the expansion project. “The additional Swiss machining and injection molding will enhance our in-house capabilities to provide the highest quality components fast without relying on outside shops.
“The increased automation space provides scalability to support future projects,” Tellers continues. “We continually hear from customers that they choose us for our expertise in tooling, technical solutions and ability to assist with everything from prototyping to serial production enhanced with automation. This remodel and expansion project enables us to continue doing that but on a larger scale, utilizing more equipment and experts added through our new apprenticeship program.”
Trelleborg anticipates starting the project in spring of 2026 and completing it by early 2027.
