We are now almost 3 weeks into the latest geopolitical event causing upheaval for the global economy, the U.S.-Iran conflict. It is already causing shipping disruptions in the Middle East for various goods, including the large amounts of natural gas and oil that come from the region, leading to increased fuel costs for many.

If sustained disruptions occur, market intelligence firm Interact Analysis expects the global manufacturing industry to be negatively impacted. Energy costs are likely to rise due to shipping delays which will also cause freight costs to increase and supply chain disruptions. Anyone who manufactures a product is likely to be impacted in some capacity, including those in the fluid power industry.

There is the potential for hydraulics, pneumatics and other technology suppliers to not only face increases in operational costs but also reduced demand for their products. Jack Loughney, Senior Data Analyst at Interact Analysis, said the conflict could eventually lead to weakened demand for machinery and industrial equipment. This would occur if manufacturers delay or scale back investments because of sustained energy price increases and inflation.

Only time will tell what the full ramifications will be, but understanding the potential impacts can help businesses be better prepared and possibly implement plans to lessen those impacts.

It’s not all doom and gloom though as other pieces in this week’s newsletter offer insight into some of the other sectors that have so far shown growth or are expected to be growth areas. Robot orders, for instance, grew in 2025 and are currently projected to remain on a growth trajectory as more applications adopt robots and other automation systems to help overcome labor challenges.

How are you finding current market conditions? Are you expecting to be impacted by the U.S.-Iran conflict or other global events? Feel free to reach out to me at [email protected] and let me know, I’m always interested in learning what those in the fluid power and motion control industries are actually experiencing.

And if you haven’t had the chance already, but are interested in providing your perspective, I’m still looking for insights on the technologies and trends influencing fluid power designs for mobile applications. Take our brief survey to offer your thoughts!

Sara Jensen, Editor, Power & Motion