INDUSTRYOPINION
I
n the technology industries there is an increasing movement of design services and manufacture offshore, notably to India and China. The impact of this has been felt in the PV industry with those regions accounting for a huge slice of the manufacturing pie and an increasing amount of the consumer opportunities. Governments around the world are working with industry in establishing networking and assistance for those companies looking to trade in China.
The UK government recently sent a clear message of the importance of China’s involvement in future growth by sending a delegation of business leaders headed up by the Prime Minister. The visit made it clear that for the UK China is one of the biggest growth areas for many different industries.
However it’s not easy to take part of your business to China, and some non-trivial investment is required to get things running. This said, if it’s done right and you’re prepared to put the time in, then not only can huge savings be made, but output improved and the whole business will benefit. After only two years of operations, China is the fastest growth area for Sondrel and will soon account for over half of its business.
Industry opportunities Looking at the photovoltaic industry, China is one of the most promising parts of the world. Despite misconceptions to the contrary, China is working with the latest in advanced processes and thanks to close proximity to some of the biggest manufacturing operations, it has been quick to acquire and utilise the latest technologies and processes. There is an abundance of skilled engineers and at more competitive rates when compared to Europe or the US.
There has been some concern about the quality of manufacturing and output in China but this has shown not to be proven in recent years. While there are certainly small operations that are akin to the cowboy operators that any growing industry attracts but the impact and effort of the top tier companies in China is on a par with anyone in the world
The government in China is keen to foster foreign business so there are plenty of organisations and groups all designed to help get businesses off the ground locally. On top of this the number of potential customers is growing rapidly along the value chain.
There has been some concern about the quality of manufacturing and output in China but this has shown not to be proven in recent years. While there are certainly small operations that are akin to the cowboy operators that any growing industry attracts but the impact and effort of the top tier companies in China is on a par with anyone in the world. Having an awareness of the different opportunities and knowing how to differentiate between quality and cost is vital to success for a foreign company. Whether they are seeking manufacturing support or hoping to sell into the growing market, the ability to navigate the increasing number of companies to find the ones you want to deal with can be daunting without local knowledge and guidance.
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www.solar-pv-uk.com Issue III 2011
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