Getting in on the 'Gold Rush'

A modern-day gold rush is on, according to hose and accessories manufacturers. AI-driven demand for thermal cooling products in the fast-burgeoning data center sector may even be outpacing supplier capacity. The mature market doesn’t frequently witness new eruptions of application at this magnitude, and suppliers say they’re working hard to support and collaborate with their distributor partners to leverage abundant opportunities.

Air, liquid, and air-liquid hybrid cooling are all in hyper-escalated demand mode in every geographic region of the country, sources say, although urgency is tempered by backlogged projects in planning phase that are six or more months out from installation.

“Data centers are the hot topic, but there are other demands for thermal cooling,” said Ben Tracey, head of product management at Continental’s fluid handling solutions division. “We need to get outside of the thinking that this is just a data center phenomenon. Thermal cooling is much bigger than that.” He cited telecom as just one example.

Cooling is certainly not the only vertical driving hose and accessories demand either. Tracey added that lithium mining is becoming an emerging U.S. market with high growth potential, and the manufacturer is evaluating whether its current offerings are adequate to meet requirements in that space or if new product development may be warranted. In addition, domestic production of oil and gas continues to fuel demand for hose and couplings, according to Brent Lilly, vice president of sales and marketing at PT Coupling, who sees that market thriving for the foreseeable future.

Cleanliness has become an increasing priority among data center applications with the advent of liquid cooling technology, according to Ronit Patil, sales engineering manager at Penflex. Stringent leak testing using helium mass spectrometry is not something new with the advent of data center cooling. Cryogenic applications, for one, require it. “My team and I are working to demonstrate to our distribution network how our products are very well aligned to the priorities of data center applications.”

Pictured: Penflex assemblies. The manufacturer says three regional sales engineers assist distributors with customized solutions and answering questions that can prevent catastrophic events in the field.

On another front, tariffs have increasingly induced end users to source locally, according to Patil. He says Buy American — stemming from the Buy American Act (BAA) — makes sense in regards to lead times where “customers cannot wait for eight months anymore. They want everything now,” he said. “So, what we have seen is an increased demand from our complete distribution chain for whether it be bulk hose and braid, custom assemblies, expansion joints, more involved assemblies like chlorine applications, data center applications, and semiconductor applications.” He adds that Penflex has increased production capacity as a result, without compromising its quality standards. To satisfy customers requiring BAA-compliance, the company has begun identifying local wire and strip suppliers to create a new line of American Iron and Steel (AIS)-certified product that’s drawn and melted in the U.S.

Last September, Continental demonstrated its focus on increasing production capacity in North America with the opening of a new hydraulic hose facility in Aguas Calientes, Mexico. “We’ve always employed a mindset of being ‘in the region for the region,’” said Tracey, “and we’re committed to this market and this region. We’re really excited not just about the greater capacity it allows us to have, but we will be coming out with some newer hose technologies.”

SUPPORTING DISTRIBUTION

Like the other sources, Lilly at PT Coupling says the company views its local proximity as a strategic asset for keeping its “supply chain relevant to the demand for product.” Treating distributors as partners, the manufacturer harnesses the power of training to support distributors and make them more successful in selling the manufacturer’s products, the majority of which are built in its U.S. facilities.

We’re devoting a lot of training to cover the full spectrum of product knowledge and application awareness,” said Lilly, who is a past board member of NAHAD and current chair of its education committee. “One interesting thing about industrial hose is there’s no one solution for every application or problem that comes up. You have to understand how to meet them individually, and for that we like to get back to the S.T.A.M.P.E.D. acronym [Size, Temperature, Application, Media, Pressure, Ends, and Delivery] to know how to make an application recommendation.”

Besides distinct hose characteristics and materials, distributor personnel must understand fabricated ends and attachments, adaptors and reducers, as well as chemical compatibility with the metal alloy of the hose.

Lilly also notes the importance of training next-gen distribution sellers to penetrate multiple layers within every customer account, from purchasing to engineers, safety directors, maintenance planners, and more. “You can’t look at every stop as only seeing one person,” said Lilly. “It’s like a multitude of sales and consulting calls, because the whole consulting ability provides solutions that strengthen the salesperson’s value to the end user.” To complement training, PT Coupling uses customer surveys to gather direct market insight that informs both the manufacturer and its distributors.

One way Continental collaborates with distributors is by creating opportunities for communication, which includes a product council as well as a new marketing council aimed at equipping distributors to educate their customers and sell more products. The manufacturer also involves distributors in field trials, seeking their feedback on new product development efforts, said Tracey. But perhaps one of the most powerful initiatives that supports distribution in the field is Continental’s emphasis on ensuring immaculate product reputation through certification.

“We play in so many different industries, and there are a lot of standards or certifications you can achieve,” Tracey said. “We adopted the mindset that if there’s an existing standard out there, we are going to get our products approved. You can see those acronyms but it’s important to read the wording carefully. Someone can say they’re using NSF-listed materials, for example, but that’s not the same as being NSF certified ... when a product is certified, your facilities and products are being audited, and that’s a whole different level of achievement … We want our distributors to know that when they buy a product from us, they can have a peace of mind that not only did we back it with our very strict internal standards from the Association of Rubber Product Manufacturers — we’ve gone out and sought approval from other agencies and boards and met their standards.”

Penflex provides numerous training modules for distributors on its website, according to Patil. “One of the things that we work very hard to do is to present information to help our distributor sales teams feel more comfortable selling metal hose,” he said. “We recognize it’s not the only product line they’re carrying … so we’re trying to equip the people who are selling our product to the end user on the topics they’re likely to encounter in conversations with buyers — and give them direction in terms of how the benefits of metal hose speak to the needs of those buyers.”

Penflex has organized its sales engineering infrastructure around the key mission of connecting distributors quickly with manufacturer information and solutions. Across the U.S., the company has three regional sales engineers, one of whom is assigned to every Penflex distributor. “We build a relationship with the distributor that allows them to feel a lot more comfortable in reaching out with any sort of questions,” said Patil. “No question is stupid — they are all important and have to be asked before implementing something that could be catastrophic in the field if there is a failure.”

PT Coupling’s basic standard cam and groove couplings.

ONE NEW THING

New opportunities give birth to supplier innovations that distributors can leverage to improve the end user’s experience. Here’s one from each of the manufacturers interviewed:

• Continental

 Ben Tracey said the company is close to launching a new constant pressure hose line that he calls a “huge and tremendous initiative.”

• PT Coupling

PRESSURE SAFE cam and groove fittings and adapters that come with a primary locking safety feature that protects the operator from personal injury in the event the quick release cam arms are opened under pressure.

• Penflex

The Clean ID P3 is a sister product to the P3 line-up, says Ronit Patil. The metal hose for cryogenic, HVAC, and data center applications is manufactured without lubricant inside, which removes the need for cleaning.

INDUSTRIAL SUPPLY MAGAZINE

The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.