According to MAKE, heightened competition and reduced profitability among wind turbine and component OEMs have resulted in a challenging market environment for investors. Western and Chinese turbine vendors are experiencing profit pressure with many posting negative profit margins in 2011. As a consequence, many are shedding lower value production assets, with factory closures already reported in China and the US.

MAKE expects blade, nacelle and tower facilities to be hit the hardest in the downturn, due to their widespread production footprints. A shift towards increased outsourcing of blade manufacture by vertically integrated turbine OEMs may aid in keeping some facilities active, and seems a logical course of action as turbine OEMs seek to reduce overhead. Aftermarket services and raw material innovation will be industry wide focal points in the near term.

Global Wind Turbine Supply Chain 2012 is a 140 page report that includes outlooks for supply and demand of strategic components at a global and regional level and potential global sourcing strategies adopted by the leading wind turbine OEMs.