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.

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The growing global demand of rare earth metals combined with China’s ever-tightening grip on the material keep pushing up the magnet prices. While we at The Switch don’t think that the price trend can last for too long, we understand that the matter is of great concern for the wind power industry. To tackle with this alarming situation and to meet future needs, the industry needs to change its perspective to open up to new opportunities.

The Switch has done intense research and development to reduce the amount of magnets needed for the production of permanent magnet generators. Based on the successful testing of 20 different machine types, we are in a unique position to make third generation permanent magnet machines. By combining our extensive field experience with our state-of-the-art design methods, not only do we have the skills to produce classical machines but we can also bring new innovation to the permanent magnet generators field.

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So Germany decided to ditch nuclear power by 2022 and largely replace the lost nuclear energy with renewables, such as wind and solar. Hurrah! We at The Switch think it is a great decision for Germany as well as for the whole wind power industry.

To shut down all of Germany’s nuclear reactors and to launch an “energy revolution” (as chancellor Merkel appropriately calls it) is a bold move. And we hope Germany will manage to set an example so that other countries will embark on this sustainable path, too.

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Attention: Chinese wind power manufacturers! We know that you are eyeing the West. Speaking last week to a house full of Chinese business and trade journalists at The Switch media business luncheon in Beijing, Celia Sun from MAKE consulting company listed a few approaches and risks you may want to consider when entering new markets.

According to MAKE’s Chief Representative in China, regulatory and technical barriers in mature markets may become a hindrance to the overseas business development plans of Chinese companies. To a large extent, this is true. However, as we at The Switch know very well, some of the Chinese wind turbines are already ‘powered by’ Western technologies, such as The Switch’s permanent-magnet generators and full-power converters.

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