May 19, 2010 Newsletter
Special WINDPOWER 2010 Edition

2010: A Pivotal Year for the Component Supply Chain

Part Two of a Series:

What's Needed to Grow Domestic Content

This is part two of a series. To read part one, check out our April 23rd eNewsletter.

For U.S. component suppliers, major challenges remain. The nature of wind turbine OEMs is extremely risk-averse, and the qualification process to approve even the most capable component suppliers can extend beyond a year. Competition is global and fierce. Over the past decade, Europe has developed a robust, cost-effective network of suppliers, many of whom are delighted to export to the U.S. In Asia, recent investment has created new supply chain resources with available capacities that are targeting the U.S. market. For U.S. domestic manufacturers, the mandate for wind industry success is extraordinary quality and a ruthless commitment to beat down costs through best practices, continuous improvement, and new technology.

Industry executives see cost-competitiveness as crucial to long-term growth, and new capital investment that adds both capacity and efficiency will be critical. Most agree that the government has an important role to play. "The number one thing needed is to establish a balanced, well-thought out national energy policy including a renewable energy standard that runs for at least ten years out," says Richard Morrison, President and CEO of Molded Fiber Glass.

A renewable energy standard, or renewable electricity standard (RES), is a public policy that requires electric utilities source a rising percentage of their power from renewables. More than half of U.S. states have such policies and the push is fierce in the wind industry to establish a federal RES for the country. "Doing this will change the uncomfortable, risky situation we now have, in which we're facing making large, long-term investments in an uncertain market environment."

Nordex's VP of Supply Chain, Dan McDevitt, agrees. "When I talk with people in Europe, I hear a real concern about whether the U.S. wind market will come back strongly. A good national energy policy will remove lots of those doubts and give our industry the long-term footing we need to compete against other technologies."

But many agree that there's another important policy step to fully develop the domestic supply chain, and that is to create parity between U.S. and Asian companies. Complaints are frequently heard of Asian components being sold here for the cost of raw materials. Causes are traced to currency manipulation of the Yuan (which some economists estimate has created a subsidy of 25-40%) and to common practices such as loan forgiveness, which enables start-up companies to write off their overhead debt and quote new orders on only variable costs. "We need the government to level the playing field," explains Joe Simko, Vice President of Business Development for Hodge Foundry. "If we received economic stimulus money, we would invest to improve our competitiveness, win more business, and create jobs on American soil."

Remember Booth 3423

You're exhibiting at WINDPOWER 2010!

Organizations currently listed with GLWN will be displayed as part of our GIS Supply Chain Map viewable by the public at our booth next week in Dallas. Also, on a separate 42-inch LCD, we'll be featuring our newest Gigawatt members. Please stop by our booth and catch up on the latest supply chain news.

View a complete list of our newest members below.

WINDPOWER 2010: Maximize Your Investment

Everything is bigger in Texas...That will certainly be true at WINDPOWER 2010. The venue is huge. The crowds will be huge. The opportunity will be huge. Here are some tips to help you maximize your return on investment.

Before the Show

• Determine your top priorities: Are you coming to WINDPOWER to make contacts? Gain specific market intelligence? Or, market your company capabilities?
• VISIT GLWN.org: Let us connect to the right markets
• Target your audience then match your list with the appropriate events that will bring you the most value and highlight your capabilities as a customer or supplier: these might include a combination of networking events and workshops, in addition to walking the exhibit hall.
• Find your top prospects on the WINDPOWER exhibitor list and visiting each company's website. Send them an email and try to get 10 to 15 minutes on their schedule with a key contact. If possible, get all your appointments scheduled prior to walking the show.

Making Value-Based Connections at the Show

• Be at your appointment on time.
• Know in advance what you want to gain from your conversation. Have your meeting scripted and rehearsed in advance.
• Listen. Engage in a conversation. Be clear about what you want to learn from your contact, so that you can discuss your company’s capabilities in light of his/her company’s needs.
• Direct your responses to their questions and concerns.
• Don’t overwhelm your contact with literature that can easily be sent by email.
• Conclude your meeting on time by exchanging business cards and reinforcing key points and any follow-up action items.

Working the Show

• Know which booths you want to visit and hit those first. If time permits, walk up and down the aisles to see the remaining exhibits.
• Find out if the literature they are displaying is available on their website. Why carry and even pay to transport something that is readily accessible online?
• Network. Go early and stay late!
• Ask questions. Talk to the people sitting next to you during the breaks, lunch, and walking in the hallways. What have they found to be the most interesting part of the show? Who do they know, etc.?

VISIT GLWN in booth 3423 – and share your success stories with us!

GLWN Newest Members

Gigawatt Members

• American Electric Technologies, Inc.
• D&S Manufacturing
• Distefano Tool & Manufacturing
• Dix & Eaton
• Helwig Carbon Products, Inc.
• Kennametal Inc
• McSwain Manufacturing, Inc.
• Milacron Contract Manufacturing
• Swiger Coil Systems

Megawatt Members

• AmerCable Inc.
• DIAB Sales
• DuRose Manufacturing Limited
• Linamar Energy and Heavy Machining Group
• P&H Mining Equipment

Kilowatt Members

• Advanced Welding Technologies
• Creative Foam Corporation
• Crystal Group, Inc.
• Darrah Electric Company
• Fibre Glast Developments Corp
• Global Blade Technology
• ITW Plexus
• Metal Powder Products
• Ohio Semitronics, Inc.
• Richland Center Foundry
• United Equipment Accessories
• Windurance