05 Sep '13, 11am

Wind Power Supply Chain in Trouble as Turbine Market Contracts

Wind Power Supply Chain in Trouble as Turbine Market Contracts

According to a new report from analysis firm MAKE Consulting, the predicted market contraction is due to a “perfect storm” of contributing factors leading to pressure on the wind power supply chain. Increasing competition has resulted in lower profit margins, while declining demand in key markets has forced companies to make capacity adjustments. At the same time, greater investment is required in order to enter emerging markets with local content requirements and to keep up with the industry’s growing demand for larger wind turbines. Declining demand in key markets can be largely attributed to policy changes and ongoing policy uncertainty, the report found. In the most hard-hit markets – Spain and the U.S. – there have been significant layoffs and facility closures over the past year. In Spain, where the government has suspended all renewable energy subsidies, capped prof...

Full article: http://www.renewableenergyworld.com/rea/news/article/2013...

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