Last month’s HUSUM WindEnergy exhibition gave us firm proof that the wind power business is moving ahead again. We’re seeing movement from all different directions and positive signs that the worst may now be over. Bigger and better turbines are currently being developed to respond to future market requirements.
The wind power business has experienced difficulties over the years in different continents. In 2009, the financial crisis squeezed money from the European market. In 2010, the US market slowed down. And most recently, China cooled in 2011.
We have been able to navigate in this turbulent environment, even though The Switch, too, has experienced challenges. Many potential projects have not turned into the planned volume production. Many of our customers have experienced challenges to enter the market, changed ownership or have given up on the wind turbine business.
We have analyzed our success factors – and come to the conclusion that we embrace certain rights, giving The Switch the freedom and ability to excel even during hard times.
All over the world, politicians see the opportunity for job growth in the renewable energy business. For example here in the US, the economy and job creation is one of the key themes in the ongoing primaries and the upcoming presidential election.
The wind and solar power industries offer opportunities to create more good-paying jobs for the local manufacturing industry, particularly as in the past these type of jobs have largely moved to low-cost countries with inexpensive labor, such as China, India, Vietnam and others. In many cases, the job creation opportunity is of higher political interest than concerns about global warming or even the western world’s heavy dependence on imported oil.
What counts is the total cost, not purchase cost. This was one of the main themes that was identified at the international IQPC Wind Turbine Supply Chain management conference in August in Germany. Speaking about The Switch agility to meet market demand fluctuations at the conference, Simon Hewitt, Global Sourcing Manager at The Switch, discussed demands for greater manufacturing flexibility, an effective risk management strategy and ways to adapt the wind turbine supply chain to demand fluctuations.
