Policy Uncertainty Drives 25% Of Wind Industry Suppliers Out Of Business

More than 120 suppliers have collapsed or stayed out of the wind business in the past two years, including 88 from Asia, 23 from Europe and 18 from North America, as the result of a “prolonged market contraction”. That is the major conclusion to come out of the 2015 edition of the annual Global Wind Supply Chain Update published by FTI Consulting.

The report examines the supply chain situation for 12 key components (350+ suppliers) and three key materials (150+ suppliers), which account for more than 95 percent of a wind turbine’s total cost. In addition to the specific components and materials, it also includes an assessment of offshore wind farm balance of plants, a summary of supply chain strategies for the world’s top 15 turbine OEMs (original equipment manufacturers), and FTI-CL Energy experts’ demand forecast for global wind market growth through 2018.

The report notes that “a prolonged market contraction has forced major turbine OEMs to divest in-house non-core production assets and opt for extensive outsourcing in order to insulate from market fluctuations while remaining profitable.” The 120 suppliers that went out of business represented a quarter of the world’s total.

via Policy Uncertainty Drives 25% Of Wind Industry Suppliers Out Of Business.

Categories: Electricity, Energy