Avoiding Supply Chain Issues with Pneumatic Component Suppliers
Between 2021 – 2023, manufacturing facilities around the world faced crisis that exposed vulnerabilities most hadn’t ever experienced before. Stemming from the aftermath of the Covid-19 pandemic, the start of the Russian invasion of Ukraine, and other geopolitical issues across the globe caused shipping ports to be short on labor, rising costs to materials, and financial losses to everyone from the manufacturers down to the consumer.
The supply chain shortage was particularly impactful on customers expecting pneumatic components like cylinders, valve manifolds, and air preparation units. Lead times that typically took 2-4 weeks were now backed up by 10x that margin, with container ships sitting idle outside shipping ports waiting to be unloaded. Distributors who had fast, next-day shipping were now not able to promise any window of shipping at all, which left some production lines waiting for $200 parts that were completely unavailable in their country.
The post pandemic supply chain issues hit the manufacturing industry harder than most realize, and the effects still ripple into the manufacturing industry’s decisions today. Understanding your decisions and your strategy is critical for manufacturers who cannot afford to repeat the same mistakes.
When “Tomorrow” Becomes “Not Sure”
For years, most manufacturers have had a similar routine when their parts got worn and relied on parts coming in right on time for replacements. Why would you waste space stocking replacements parts when you could get it next day air? This system worked brilliantly, until it didn’t.
Disruptions of global supply chains compounded rapidly, and shortages of raw materials meant that pneumatic component manufacturers couldn’t produce at normal rates. Shipping costs rose by over 22%1 while transit times doubled and tripled. Freight reliability was simply unpredictable.
Pneumatic component suppliers found weaknesses with the worldwide nature of their raw materials or subcomponent supply chains. An essential cylinder for a manufacturer may sit in a factory or at a port for a couple months and then take weeks on a truck to get to a distribution center. Manufacturers have discovered what used to be a reliable system is much more fragile than they previously had thought.
The Bullwhip Effect
As lead times begin to increase, panic starts to set in and what was once a predictable cycle has all of a sudden become a destructive pattern of panic.
Manufacturing operations that normally order what they currently need, now are placing large orders to make sure they have the stock for any future delayed lead times. A manufacturer that panic orders a 6-month backup of replacement parts has now created the perception of surging demand. Multiply that by every large manufacturing firm that uses pneumatic parts and you have a bullwhip effect that is surging demand on top of the pre-existing delays.
Inevitably, the bullwhip snaps back…
As time goes by and supply chains start to normalize, lead times improve. Many manufacturers who panic ordered months of parts now are left with excess parts. Demand that appears to surge, suddenly collapses as manufacturers revert to their old schedule. Suppliers who ramped up their production face plummeting orders. Distributors who overstock on parts struggle with inventory they cannot move.
This outcome produces a highly unstable and inconsistent demand with forecasting, making it difficult for pneumatic suppliers to plan production with confidence. Some parts remain in short supply while others become overproduced. Upending the long‑standing balance between supply and demand that had existed for decades.
The Geopolitical Factors Manufacturing Firms Cannot Ignore
While pandemic effects mostly dominated headlines during the supply chain shortage in 2021 – 2023, geopolitical factors compounded supply chain issues that are still shown in today’s market.
Trade tensions, tariffs and export restrictions have created an uncertainty surrounding component availability and pricing. Manufacturers who had previously relied on single source suppliers in specific countries have now found themselves exposed to political risks they hadn’t considered. When export restrictions or trade policy changes on a whim, most distributors don’t have an alternative.
Energy prices have begun to skyrocket in recent years. Many lesser pneumatic suppliers only manufacture in a small region and do not have a global presence. Higher costs for these suppliers and currency fluctuations are making it difficult for these companies to compete worldwide.
Some successful manufacturers have begun diversifying supplier bases and have started to reconsider geographic concentration risk. Pneumatic companies like Festo, with a global manufacturing footprint on 6 different continents, have found themselves in stronger positions than those who are dependent on a single country or region for production and distribution.
Mitigating Risk with Industry Standard Components
As supply chain issues have become unpredictable in this decade, many manufacturers have found a critical advantage that they hadn’t fully appreciated in years past: The ISO Advantage.
Facilities running proprietary sized parts from single source suppliers face impossible challenges. When their supplier can’t deliver a replacement cylinder due to shipping delays or part shortages there are no alternatives. The mounting systems are unique, size of parts are different on your line, and port configuration is custom fit from the supplier. Production stays stopped until that supplier can deliver the needed part.
Manufacturers using ISO-standard components had options. When one supplier can’t deliver a replacement part, they can source the same functioning part from alternative suppliers that meet the same ISO-standards. With matching mounting dimensions, port threads and stroke lengths that follow industry specs, the luxury of supplier flexibility means production disruptions could be measured in days instead of weeks.
This became particularly useful when supply chain chaos was at its worst. There was nothing a facility could do but wait for a proprietary valve manifold. The likelihood of discovering available inventory somewhere in the supply chain would significantly increase if a facility operating ISO-standard parts approached several distributors and manufacturers. Festo's commitment to ISO standards meant customers weren't locked into single-source dependency. The risk was reduced by the underlying standards compliance, even though Festo components offered superior quality and performance. Customers could find temporary solutions from other suppliers if Festo experienced short-term supply constraints, then switch back to their favorite Festo components once availability stabilized.
What These Factors Mean for Your Manufacturing Operation Today
The post pandemic supply chain crisis has come and gone but the ripple effects are still very much here. Pneumatic component supply chain is more stable now than it’s been in years past, but they aren’t as predictable and geopolitical factors have not disappeared.
Manufacturers must be cautious about returning to their old practices before the aftereffects of the pandemic. The pneumatic component suppliers who navigated the crisis successfully did so through established infrastructure, financial strength to maintain inventory during disruptions, and commitment to customer delivery even when it was expensive or difficult. Those attributes matter as much as component quality when supply chains face stress.
The question isn't whether future disruptions will occur, it's whether you're working with suppliers and distributors who can deliver when it matters most.
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