Authored by Derrick Caudle:

Industrial gas keeps businesses in operation. Wholesale gases – Acetylene, Oxygen, Nitrogen, Argon, and Propane – and their providers are essential to our economy. From automakers to building product distributors and more, efficient industrial gas supply can empower businesses to run more effectively and optimize teams to focus on other tasks.

The industrial gas and HVAC market is expanding rapidly. Despite some supply chain setbacks and unique challenges in 2022, the market has seen steady growth over the last few years. Thanks to demand growth and supply chains leveling out, 2023 was an especially productive year. In 2024, we expect this trend to continue, driving year-over-year growth.

Industrial Gas: What We Saw in 2023

Last year, the industrial gas industry recovered from the challenges experienced in 2022, including material shortages and supply chain disruptions, which led to suppliers struggling to keep up with demand.

2023 saw steady and increased demand, driving growth for the industry. Supply chain stabilization helped suppliers meet customer needs and expectations, keeping businesses – and our economy – moving. In 2023, we saw a growing interest in forklift propane utilization with industrial customers as businesses look to reduce record-high delivery fees, increase flexibility in order frequencies, and optimize vendor spend. It is one of the most available resources globally and can be a viable sustainable solution compared to other fuels.

It’s critical that industrial gas suppliers continue to stay on top of trends and best practices to deliver gas refills on time and provide reliable and consistent service.   

Challenges for the Industrial Gas Industry in 2024

While the industrial gas industry is well-positioned for success in 2024, we do expect some challenges to arise, especially for the HVAC market.

As always, the refrigerant market continues to evolve to meet energy efficiency standards and goals. As R410a continues to phase out – an effort that started in 2024 – will be replaced by R454b, which has a low global warming potential, helping the HVAC industry reduce its environmental impact.

With this change, older HVAC units will be replaced with newer systems since there are no retrofit options to support this transition. We recommend updating systems sooner rather than later as it will be more cost-effective in the long term.

Industrial Gas Supply Best Practices

As we prepare for a positive outlook for industrial gas in 2024, it’s important that the industry leverage the following best practices to ensure gas is available and stored correctly:

  • If gas supply chain challenges arise, suppliers should ask customers to consider ordering needed gas earlier. This helps ensure they have the supply needed to keep business moving.
  • Communication is key – gas suppliers should prioritize consistent communication with customers to stay on top of industrial gas supply needs and further optimize supply chain operations.
  • Consider consolidating propane orders with your industrial gas supplier to reduce costs and increase flexibility.
  • Companies must remember that storage for compressed and flammable gases must meet local fire marshal requirements. Following their lead on storage requirements is best to ensure compliance and safety. EspriGas makes it easy by providing additional tips on storing your industrial gas cylinders.

In addition to the above, suppliers and customers should make sure they are staying updated on the latest industry trends and recommended business strategies. This can be achieved by attending industry conferences and tradeshows, participating in workshops and webinars, and subscribing to industry-leading publications, like gasworld, to learn from industry leaders.

How EspriGas Can Help with Your Industrial Gas Needs

Looking ahead to 2024, industrial gas suppliers must stay aware of the industry’s changes and current events. EspriGas is here to continue to support our customers by developing and sharing strategies and best practices to support industrial gas supply needs.

The industry continues to evolve and is positioned for growth in 2024 after the success of last year. We will continue to monitor and analyze our operations and industry trends to make sure we are evolving and responding as needed to support businesses every step of the way.

To learn more about our offerings, click below to contact us today to get started.

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The EspriGas Way

Fulfilling your commercial and wholesale industrial gas needs should be simple and easy. Our streamlined ordering process will help you get the right amount of gas, on-time with minimal effort.