Wind Supply Chain Creates Opportunity for Canadian Manufacturers
Published on May 19, 2010
Attracting original equipment manufacturer (OEM) leads to global opportunities
May 18, 2010, Medicine Hat, Alberta… The industrial landscape in Southeast Alberta has potential to access global supply opportunities in creating wind turbines, by attracting an original equipment manufacturer (OEM) to the province. Focused on employing a variety of manufacturing strategies, including in-house and outsourcing, OEM’s are attracted to areas, such as Southeast Alberta, that are undergoing wind farm development, have a skilled workforce, and a strong manufacturing capability and capacity. An OEM in the province would likely attract Tier 1 suppliers (blades, towers, and nacelles) leading to opportunities for subcomponent suppliers to support Tier 1’s such as: metal fabricators, precision machine shops and nacelle components.
“Having two of Canada’s largest wind farms proposed for Southeast Alberta, means not only job and revenue creation to build these farms, but that there are opportunities on the turbine manufacturing side as well,” said Tracy Heebner, Business Development Officer for the EDA. “Wind turbines require more than 8,000 parts. No matter where an OEM would set up in the province, there would be manufacturing opportunities in the wind supply chain for other locations of the province too. This means that if we want to create these types of jobs that benefit all Albertans, we must work together.”
Outlined in the Wind Industry Supply Chain Opportunities for Canadian Manufacturers report, a partnership between the Canadian Wind Energy Association (CanWEA) and Canadian Manufacturers & Exporters (CME), industry and policy leaders are encouraged to take immediate action to be able to compete on a global scale. Currently, the Canadian supply chain is relatively small in comparison to the U.S, creating both challenges and opportunities. In the long term, innovative companies that are successful nationally will have access to countries expected to outpace North America in growth over the long period. Asia, for example, will provide opportunities for exporting products and services and transferring technology.
However, in order for a provincial jurisdiction to capitalize on the wind energy manufacturing and component production they must first attract an OEM. By developing an attraction strategy, establishing a cluster of wind turbine supply chain participants and by creating a policy to develop a sustainable Canadian supply chain, Southeast Alberta can be a competitor in the pursuit of an established wind energy supply chain in North America.
Recognizing the industry expansion and growth potential, the Economic Development Alliance encourages communities to expand their knowledge and support the proposed wind farm developments that have potential to provide immediate and long term revenue and employment for their areas. For further information on this subject or alternative energy contact Tracy Heebner at 403-488-7015 or view the wind industry supply chain opportunity document online at: http://www.edalliance.ca/media_room/latest_news.