Bucking The System Approach

Diesel Progress North American Edition, July, 2001 by Mike Brezonick

HydraForce follows own course as specialist in cartridge valves and controls; expanded product line, facilities

In today's mobile hydraulic industry, the trend seems to be heading toward a handful of giant, global companies that aim to supply complete hydraulic systems -- everything from pumps and motors to valves and filters -- to equipment manufacturers. Yet there remains a group of suppliers who take a different view and believe that a company that specializes and becomes expert in a particular segment of hydraulic technology can be successful in a consolidated world.

A good example of this contrarian approach would be HydraForce Inc., Lincolnshire, Ill. A privately held company, HydraForce specializes in the design and manufacture of high performance hydraulic cartridge valves and hydraulic control systems for mobile and industrial applications. Products include solenoid valves, electro-proportional valves, directional, flow control and pressure control valves, sandwich valves, manifolds and accessories.

While that product line is extensive in its niche, it pales in comparison to what some of the major global players can offer. Yet what HydraForce seeks to send is more of a focus vs. breadth message, according to Richard Fontecchio, vice president, marketing.

"With the larger consolidated companies, their plan of attack is to basically say, 'I can give you everything on your machine;" said Fontecchio. "Our counter to that to the OEMS is yes, they might be able to give you all those component, but they're not necessarily best in class in all of them and if you go that route, you can end up with a mediocre machine. The hydraulic valve control

system is a major element in these machines and mediocre isn't going to hack it.

"They can't get overly hung up in supply chain issues because at the end of the day, they still have to build a machine and they still have to compete. So the technology still has to be there. We're seeing some of the OEMS start to figure that out.

"If we were just doing "me too" products, I would say we'd suffer badly in the midst of that (consolidation) trend. But we believe we're a leader in our segment of the technology and that's why OEMS can justify having HydraForce as a supplier on their machines."

As part of its emphasis on new technology, the company is almost continually developing and introducing new products. Among the newest of these is a miniaturized proportional pressure control valve designed for low hp hydraulic fan drive circuits, along with new electro-proportional directional valves for mobile equipment (see related story).

Along with the new products, Hydra-Force is in the midst of significant additions to its physical plant, both here and at its U.K. operation. At Lincolnshire, the company is in the last stages of completing a 58,000 sq.ft. addition that will roughly double the size of the overall facility. It's the second major expansion in the last two years for HydraForce -- in 1998, it added 16,000 sq.ft. -- and the third since the company was founded in 1985 in Wheeling, Ill.

"We learned from our experience two years ago," said Fontecchio. "We thought when we put the last addition on that we would have ample capacity for three to five years. It didn't last two before we were stacked to the ceiling again and hurting for space."

HydraForce is also building a new 50,000 sq.ft. facility in Birmingham, England, with a 50,000 sq.ft. addition. That expansion is expected to be completed by midyear and will pave the way for increased manufacturing and engineering capabilities along with more EC-based sourcing of materials.