By: Derrick Caudle
Industrial gas and its providers play an integral role in powering businesses. Wholesale gases – Acetylene, Oxygen, Nitrogen, Argon, and Propane – are essential to the economy and various industries.
The industry is growing rapidly, with recent reports predicting it will reach $148 billion by 2028. With the heavy reliance on and growth potential for industrial gas, it’s important that we look back at 2022 and its unique challenges and lessons learned, as well as look further into 2023 and the opportunities it presents.
Overall, we feel confident about 2023 as the industry resolved many of the obstacles we experienced last year. Specifically, supply chain woes are less of a concern. Let’s look deeper at what we learned in 2022 and how it will inform future strategies.
Industrial Gas Challenges in 2022
As we saw across business sectors last year, the industrial gas industry experienced significant supply chain disruptions in 2022. The industry struggled to meet the demand for industrial gas due to a shortage of the materials required to produce gas and the containers needed to store the gas. Ultimately, this meant delayed deliveries.
Because of these obstacles, the industry could not reach its full potential, and many suppliers felt the stress of being unable to meet demands. Moreover, industrial gas suppliers struggled with a large backlog of orders. Companies had to wait for weeks, and in some cases months, for deliveries to arrive.
Luckily, suppliers weathered the storm and met demand during the off-season for the industry. This resilience meant the industrial gas industry was well-positioned for success as it entered 2023.
How Gas Supply Chain Trends Will Evolve in 2023
The industry is well-positioned for success in 2023, and there are a variety of reasons for suppliers to be optimistic.
One of the biggest reasons for this is that the supply chain appears to be more on track this year, and we don’t anticipate the same shortages we saw in 2022. Because of these factors, we expect that 2023 will lead to higher consumption volumes and increases in overall spending.
Customer expectations remain high. When businesses need gases, they need products quickly to keep business moving. This constant need for quick turnaround means that industrial gas suppliers must continue to prioritize and invest in improving reliability, consistency, and timely delivery to meet demand and expectations.
Industrial Gas Supply Best Practices
As we prepare for a more positive outlook for industrial gas in 2023, 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.
- 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.
The industrial gas industry can help optimize supply and demand needs through these strategies.
How EspriGas Can Help with Your Industrial Gas Needs
Looking ahead to 2023, industrial gas suppliers must stay aware of the industry’s changes and current events.
The industry faced significant challenges in 2022 due to supply chain disruptions. However, it is positioned for growth in 2023 with partners like EspriGas, who can meet the demands of diverse customers via a network of supply partners and strategic partnerships. In fact, we have invested in our tank inventory to ensure we can continue to meet orders on time this year and beyond.
Learn more about our industrial gas offerings today.Get a Quote