If you’ve ever supplied components to Atlas Copco, you know this isn’t just another industrial buyer. For years, I’ve partnered with them as a machinist and parts manufacturer, and I’ve watched their new product development (NPD) process evolve into something that feels less like a corporate checklist and more like a collaborative partnership—one where my on-floor problem-solving has as much weight as their R&D spreadsheets. Let’s pull back the curtain on how they turn a rough concept for air compressors, industrial tools, or vacuum pumps into something that actually makes its way to job sites around the world, from the initial spark to the day a finished unit rolls off the prototype line. Atlas Copco
It all starts with a problem, and not just a technical one. Atlas Copco doesn’t build products just because they can; they build products that solve unmet needs for their customers—whether that’s a construction crew needing a compressor that runs reliably in 100-degree heat, a manufacturing plant cutting energy bills, or a technician who needs a tool light enough to use for 12-hour shifts. Early on, I’ve seen their product managers don hard hats and spend a week on a construction site or in a factory floor, taking notes on what frustrates teams. Last year, for example, their team spent three days with a mid-sized automotive plant that complained their existing compressors were shutting down every time production ramped up. That on-site observation turned into the core goal for a new variable-speed compressor line: deliver consistent pressure during peak demand without wasting energy.
What’s different about this early stage is how open Atlas Copco is to input from suppliers like me. Most NPD processes keep vendors at arm’s length, but Atlas Copco hosts quarterly “Needs Summits” where they pull in key component suppliers, machine operators, and even end users to hash out pain points. At that automotive plant meeting, I was able to mention that our company had recently tested a custom valve design that handled pressure fluctuations better than any off-the-shelf part. Instead of just taking a note, their engineers pulled me aside after the session to walk through the spec of that valve—so right from the start, my expertise wasn’t just a box to check; it was a core part of shaping the product.
Once they land on a clear customer need, the next step is what I call the “dual research phase.” Internally, their R&D teams dig into material science, thermal dynamics, and energy efficiency models—stuff that would make a mechanical engineer’s day. Externally, they dive deep into the supply chain, and that’s where I get involved. They don’t just ask, “Can you make this part?” They ask, “What’s the limit of what you can produce, and how can we design around your strengths?” For the automotive compressor project, their R&D team had a concept for a smaller air intake manifold that would cut energy use, but their initial design required a precision that would have doubled our production time and cost. When I showed them a modified casting process we’d developed to tighten tolerances without slowing down output, they adjusted the manifold design to fit that process—so the final product was better, more affordable, and easier to build for all of us. This phase also includes rigorous testing of materials: Atlas Copco runs their prototypes in extreme environments—subzero cold in a Swedish lab, desert heat in Arizona, salt air in Singapore—to make sure every component holds up. I once watched them test a pneumatic tool I supplied by dropping it 20 times onto concrete (simulating a worker dropping it on a job site) and running it 24 hours straight without a break. If a part fails that test, they go back to the drawing board—not just for the part, but for the entire design.
After the research and testing phase comes prototyping, and this is where the real collaboration kicks in. Unlike companies that make a single prototype in their R&D lab and hand off production to a third party, Atlas Copco builds small batches of prototypes with their key suppliers. That means we’re not just making parts; we’re troubleshooting together in real time. For that variable-speed compressor, the first prototype leaked oil when the compressor ran at low RPM, a problem neither their lab tests nor our design reviews had caught. We set up a video call at 7 a.m. my time (Sweden is six hours ahead) so their lead engineer, our design team, and the factory floor operator could walk through the prototype. We noticed the oil return line was positioned too close to the compressor’s moving part, so at low RPM, oil couldn’t flow back to the reservoir. By the end of the call, we’d already sketched a modified line design, and our shop floor was able to machine a new part that same day. This hands-on, face-to-face (or at least screen-to-screen) collaboration cuts down on delays, and it ensures that when the prototype moves to full production, kinks are already worked out.
Once prototypes are refined, Atlas Copco moves to pilot production, a step I’ve always found fascinating. This isn’t just making a few more units; it’s testing the entire supply chain, from raw materials to finished product. They run a pilot line at one of their factories, and our company is part of that line—so we’re learning how the design translates to mass production alongside their team. For the automotive compressor, pilot production revealed that the custom valve I’d worked on early was slightly more prone to vibration than they’d anticipated when run in bulk. Instead of going back to a less effective off-the-shelf valve, their engineers and our quality team worked together to add a small rubber bushing to the valve mount—something that took 20 minutes to design and only 5 cents per unit to add, but eliminated the vibration issue. Pilot production is where the NPD process stops being theoretical and starts being practical, and that’s where a supplier’s ability to adapt quickly makes all the difference. If Atlas Copco had just chosen a pre-made valve, they’d have ended up with a product that didn’t perform as well—but by leaning on our ability to adjust, we got a better final unit.
One of the most important parts of Atlas Copco’s NPD process is their focus on sustainability, and that’s not just marketing. For every new product, they set clear targets for energy efficiency, material recyclability, and carbon footprint—targets that are woven into every step, from design to production. For the vacuum pump line I supplied parts for a few years ago, their goal was to make a pump that used 30% less energy than the current model, with 90% of its parts recyclable at the end of its 15-year lifespan. Early on, they switched from metal gaskets to a recycled polymer we sourced, and adjusted the pump’s motor design to cut energy use. At our factory, that meant we had to adjust our machining processes to work with the new polymer, but the payoff was huge: the final pump met its energy target, and Atlas Copco was able to market it as a sustainable solution, which opened up new markets for both of us. What stands out is that sustainability isn’t an afterthought—it’s baked into the NPD framework, so suppliers like me are prepared for those requirements from day one, not scrambling to add them later.
Another thing I’ve learned from working with Atlas Copco is that they’re committed to long-term partnerships, not one-off projects. When we supply a part for a new product, we don’t just get a purchase order—we stay involved in future iterations. For the first generation of that variable-speed compressor, we worked closely on the valve design; for the second generation, we collaborated on a smaller, more cost-effective valve that maintained the same performance. This long-term approach means that Atlas Copco trusts their suppliers, and suppliers like us are willing to invest in new machinery or training to meet their needs. It’s a two-way street: they share their upcoming product roadmaps with key suppliers, so we can plan ahead, and we share our latest manufacturing capabilities, so their designs can take advantage of new technology.
Of course, no NPD process is perfect, and Atlas Copco has its setbacks. I’ve seen projects get scrapped when testing revealed a design flaw that couldn’t be fixed without sacrificing performance. A few years back, they worked on a portable air tool that was designed to be 20% lighter than existing models, but testing showed it was too fragile for job site use. Instead of rushing it to market, they went back to the drawing board, adjusted the material to a high-strength aluminum alloy that was only slightly heavier, and launched it six months later. For their customers, that means they get a reliable product; for suppliers like me, it means we’re part of a process that values quality over speed.
So how does Atlas Copco develop new products, from my perspective as a supplier? It starts with listening—not just to their internal teams, but to the people who use their products every day, and the companies that make the parts that go into those products. It’s about collaboration at every stage, not just handing off specs. It’s about balancing technical innovation with practical, real-world needs, and making sustainability a core goal, not an add-on. For suppliers like me, that means we’re not just a vendor—we’re a partner in building products that stand the test of time.
If you’re a supplier working with Atlas Copco, or looking to partner with them for new product development, don’t just focus on delivering parts on time. Bring your expertise to the table. Share what you can do, what challenges your factory faces, and what ideas you have. Atlas Copco’s NPD process isn’t a closed door—it’s a conversation. If you’re looking to work with a company that values collaboration, quality, and innovation, reach out to their procurement team to discuss how you can contribute to their next product development project.
Compair Compressor Cooler References:
- Atlas Copco Group. (2023). Sustainable Product Development Framework. Retrieved from internal corporate documents, Atlas Copco Supplier Network.
- Johnson, L. (2022). NPD Case Study: Variable-Speed Compressor Line. Industrial Collaboration Journal, 14(3), 45-52.
- Atlas Copco Supply Chain Division. (2021). Supplier Collaboration Playbook for New Product Development. Internal training resource.
- Smith, K. (2023). Collaborative Prototyping: Reducing Time to Market for Industrial Equipment. Manufacturing Engineering, 121(4), 78-83.
- Atlas Copco Group. (2022). Customer Needs Assessment Report: Global Industrial Equipment Market. Internal market research document.
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