Industrial automation continues to grow to help overcome labor challenges while also enabling improvements in productivity and efficiency. As such, it is bringing a number of opportunities for those developing products for use in automated systems and machines.

KHK is one such company; its gears are an important power transmission component in a variety of industrial automation applications including robotics, machine tools and conveying systems.

Brian Dengel, General Manager, KHK USA Inc., told Power & Motion that the company has seen a steady increase in demand for its gearing products in 2026 due to the ongoing implementation of industrial automation in various industries. He expects this trend to continue into 2027 as automation expands throughout the industrial sector.

This is placing new technology requirements on component suppliers like KHK to meet the need for higher speeds and torques.

Power & Motion spoke with Dengel about these new technology requirements as well as other market trends he’s seen in 2026 and expectations for 2027.

*Editor’s note: Questions and responses have been edited for clarity.

Power & Motion: From your perspective, how have market conditions been in 2026 for your company and the industries it serves?

Brian Dengel: We have seen a steady increase in demand for our products. This demand has come from all industries as the need for industrial automation is not sector specific.

2026 also presented some stability regarding tariffs. The assessment of section 232 tariffs on steel, aluminum and copper derivative products was reset to 25% of the total value of the product. Now that the tariff has been fixed, our customers no longer need to worry about price adjustments.

Power & Motion: What factors have presented challenges this year for your company and/or its customer markets?

Brian Dengel: The biggest challenge that we have seen is the need for finer pitch gearing with low backlash in high speed or high torque applications.

We have begun to procure machinery capable of producing products which meet these requirements. Additionally, we have begun working with new materials which are able to resist the stresses of high speed and higher torque applications.

Power & Motion: What opportunities — from a market or technology perspective, or both — have you seen this year, and do you expect these opportunities to continue in the year ahead?

Brian Dengel: We have seen an increase in demand from national distributors and regional independent resellers. As demand for metric dimensioned components continues to increase, the demand for our products mirrors the increase.

Power & Motion: What are the most requested features or capabilities you’ve been getting from customers this year, and how, if at all, do they fit in with broader industry-wide trends?

Brian Dengel: The most requested feature that we continue to see is “D” bores. The plus side to “D” bores are their ability to handle high torque. The negative side is that an industry standard for “D” bore sizes does not exist. As such, each client’s “D” bore requirement necessitates custom tooling and/or machining. 

Power & Motion: Are there any new trends you see influencing product developments in 2027 and beyond? If so, what are those trends and how do you anticipate them impacting your designs?

Brian Dengel: We plan to introduce new products made from highly engineered plastics in 2027. Our customers need products made from PEEK (polyether ether ketone), UHMW (ultra-high-molecular-weight polyethylene) and carbon fiber reinforced nylon to meet their design needs. We plan to offer our stock gearing in these materials in anticipation of their demand.

Power & Motion: What opportunities do you see in 2027? Are there any markets you anticipate doing well or offering areas of opportunity in the coming year?

Brian Dengel: As a supplier of industrial automation components, our products are found in all vertical markets. Robotics and other automation [technologies] are expanding throughout all of industry. KHK is happy to be a part of it.