Earlier this year, the Fluid Power Distributors Assn. (FPDA) met in Phoenix for its annual meeting. The opening session for that meeting was titled "Fluid Power: An Industry in Transition."

Prior to that meeting, the president of FPDA, Brian Kundinger, told INDUSTRIAL DISTRIBUTION, "Our industry has been in a declining phase the last three to four years…. What do we need to do, as an industry, to convince people we can handle their needs with traditional fluid power products, but also marry those with newer technology...?"

Fluid power representatives left Phoenix with the realization that their industry had to do more than just move products. They needed to be constantly on the alert for new markets and new customers to serve. Looking back six months later, among the distributors who put those thoughts into practice is FCI Automation of Grand Rapids, Mich.

"Our focus has changed…from component sales such as hose and fittings and bin-stockings to that of a solution provider," said Tom Cox, general sales manager of FCI. "We are now actively looking for automation solutions where we can combine different technologies like pneumatics…. For example, there are a lot of fluid power players, but not as many strong pneumatic players in the market. So we've focused there."

Actually the very name of the company (FCI Automation) is new, a change from the previous name, Fluid Connections—"a better description of what we're doing," says Cox. FCI also bought a new building this year, virtually doubling the company's size.

Some of the adjustments FCI has made began even before the meeting in Phoenix, Cox explains. For the past few years, for example, he says there had been a big push by the FPDA for its members to explore companion technologies. In response to that, FCI increased its training expenses, especially for its outside sales staff.

"The object is to have our outside guys be able to answer 80 percent of the questions right off the bat," before bringing in a product specialist, Cox says. "That can really set us apart from the competition."

However, not every day is sunny for FCI and others in the fluid power industry. Cox has more than a few concerns, despite his company's success in '04.

"Steel has been killing us," he says. "That's killing everyone right now and we're fighting it on a daily business," he added, referring to many of their products, especially fittings, that depend on steel. In turn, some FCI customers have also adjusted and are now buying, for example, plastic "push-to-connect" fittings rather than the too expensive ones made of steel, Cox explains.

On other issues, Cox is looking in the same direction as other industries these days.

"I'm still a little nervous about some of the manufacturers consolidating plants, going offshore, things like that," he says. "Right now, though, there's enough stuff going on, at least in our area," referring to Michigan, an area that has been slower than most to rebound economically.

"So it all looks pretty good right now," Cox says. "We're just trying to manage growth and not get too far ahead of ourselves…."

jnowlan@reedbusiness.com