Lifting resilience to disruption
LEEA CEO Dr Ross Moloney provides an update on the impacts created by the situation in the Middle East and why it is important to support resilient LEEA members.
The lifting equipment industry is built on a foundation of global supply chains. From steel and wire rope to hydraulic systems, synthetic lifting slings and electric motors, these products that keep construction sites, ports, factories and warehouses operating and depend on a complex network of suppliers spanning multiple continents.
Concerns surrounding the Strait of Hormuz in the Middle East, which has been mostly closed since 28 February 2026 due to the recent conflict, have highlighted the vulnerability of critical supply chains for manufacturers, distributors and end users of lifting equipment.
One of the world’s most important trade corridors, the strait connects the Persian Gulf to the Arabian Sea, serving as a vital gateway for energy products, raw materials and manufactured goods travelling between Asia, Europe and the Americas. Major exporters using the strait include Saudi Arabia, UAE, Kuwait, Iraq, Qatar, Bahrain and Iran. Being just over 21 miles at its narrowest point makes for a venerable choke point.
At time of writing, a Memorandum of Understanding between Iran and the US, laying out the terms of a ceasefire leading to the reopening of the Strait of Hormuz, has been signed. How this plays out remains to be seen, given sporadic history of this situation, but the hope is it will lead to business as usual. If this is the case, it will take time to normalize, as will the already significant impact of the prolonged closure.
For manufacturers of lifting equipment, the strait is significant not only because finished products transit through the region, but because many of the raw materials and components required to manufacture lifting equipment originate there or pass through its shipping lanes.
Conflict and instability have led to delays, bottlenecks and increased transportation costs, with alternative shipping routes being costly and time-consuming. Diverting vessels around the Cape of Good Hope can add between 10 and 14 days to standard transit times, increasing lead times and reducing supply chain predictability. Compounding these impacts, shipping companies face rising insurance premiums and war-risk surcharges, adding further costs to imported components and finished products.
However, the implications extend far beyond logistics. According to the US Energy Information Administration (EIA), approximately 20 million barrels of crude oil and petroleum liquids pass through the Strait of Hormuz every day, representing around 20% of global petroleum liquids consumption and roughly one-quarter of global seaborne oil trade. Any disruption to these flows has the potential to affect energy markets worldwide with prolonged closure possibly seeing global oil prices increase by 30-100% or more.
Rising costs across manufacturing
As oil and gas prices rise, manufacturing costs inevitably follow. The lifting equipment sector relies heavily on materials that have energy intensive production: steel manufacturing, wire rope production, copper processing and aluminium smelting.
Energy can account for up to 40% of steel production costs. High-strength structural steel remains a fundamental material for cranes, lifting frames, runway beams, outriggers and countless other lifting applications – the production process of steel wire rope requires both high-quality iron ore and substantial energy inputs.
Gulf countries are important suppliers of iron ore pellets and direct-reduced iron (DRI) used in high-quality steel production. And aluminium, which is used extensively where weight reduction is important, is also highly dependent on stable energy supplies.
Disruptions to energy exports from the gulf region have a direct impact on production costs throughout the lifting equipment supply chain, resulting in higher steel and aluminium prices along with increased transportation costs, longer lead times, reduced availability of engineering polymers and increased energy costs throughout manufacturing operations. No surprise, therefore, that the cost of finished products is rising.
Equipment manufacturers are under pressure and while many suppliers maintain strategic inventories, prolonged disruption could eventually constrain production capacity.
The petrochemical connection
It is estimated that around 95% of global manufactured goods contain chemicals derived from petroleum or natural gas. The lifting equipment industry’s dependence on oil extends well beyond fuel and energy. Many essential lifting products are manufactured using petroleum-derived materials. Synthetic lifting slings, webbing, safety harnesses, ropes and fall protection equipment all rely on advanced engineering polymers.
Polyethylene and polyester fibres, for example, are produced using feedstocks derived from petroleum and natural gas. These materials undergo multiple processing stages, including polymerisation, melting, filament production, yarn spinning and textile weaving. Each stage may take place in a different country, requiring extensive transportation and logistics support. As shipping costs increase and feedstock availability tightens, manufacturers face growing challenges in securing reliable supplies of these specialist materials.
Of course, competition for raw materials naturally intensify during periods of disruption. Manufacturers of lifting equipment often compete for feedstocks with much larger industries such as consumer goods, packaging and textiles. In times of scarcity, niche industrial sectors may find themselves at a disadvantage when competing for limited supplies. The result can be increased lead times, higher prices and occasional shortages of products.
Oil in everyday lifting equipment
Oil-derived products are deeply embedded throughout lifting equipment design and operation. Lubricants and greases are essential for maintaining wire ropes, chains, bearings and gear systems. Hydraulic systems depend on specialised oils to transfer power and ensure reliable performance. Oil-impregnated bearings provide continuous lubrication, while engineering plastics used in sheaves, gears and wear pads frequently incorporate petroleum-based materials to reduce friction and extend service life. Protective coatings, corrosion inhibitors, sealants and many synthetic components used throughout the industry also originate from petrochemical processes.
These often-overlooked materials play a vital role in ensuring lifting equipment remains safe, reliable and efficient throughout its operational life.
Demonstrating resilience
While uncertainty still surrounds the duration and ultimate impact of this situation, one thing is clear: supply chain resilience is becoming an increasingly important competitive advantage. In the lifting equipment industry, the ability to anticipate disruption, adapt quickly and maintain reliable access to critical materials will be essential in supporting customers and keeping projects moving.
In an increasingly interconnected world, the lifting equipment industry’s role in keeping economies moving has never been more important. Leading the way, LEEA is an association dedicated to supporting our members and a trade body to support end users in the marketplace. Any LEEA members finding themselves in a difficult position due to the economic turbulence caused by the troubles, please talk to us. We can assist in terms of such things as training, offering technical advice and will help in any way we can.
With margins at risk of being squeezed and a reluctance or even refusal to accept price increases on goods and materials, end users may start applying pressure on partners or seek new contractors who may have lower standards or other ‘economies’. There may also be a temptation to allow ‘slippage’ in assessment and inspection cycles to improve cash-flow. We strongly advise end users to stick with your high-quality manufacturing and inspection partners who, despite being under pressure, will stand by you. Most importantly, members carrying the LEEA logo assure quality and safety and this must always be valued over short-term expediency.
We are confident that our innovative and agile LEEA members demonstrate their supply chain resilience as they play their part in contributing to the Lifting Industry’s vital role in keeping the global economy moving. For more information on LEEA and its services, visit leeaint.com.
