NewsDesk While the PTC extension brought some relief to the sec-
tor, the threat of the expiration had already begun to have a chilling effect on the industry. It’s unclear whether its renewal will cause an immediate ramp up of demand. AWEA noted that layoffs had already begun, as companies idled factories because of a lack of orders for 2013.
Indeed, Siemens Energy Inc., which makes wind turbine blades and other equipment, laid off 615 workers in Iowa, Kansas, and Florida in September in part because Congress had not renewed the tax credit, the Associated Press reported. While it said the renewal of the PTC was a step in the right direction, many customers had ramped up wind farm projects in 2012 in case the PTC wasn’t extended. That could have eaten into demand for 2013.
With the race to build wind farms before the expiration of the PTC, wind set a new record in 2012 by installing 44% of all new electrical generating capacity in America, according to the Energy Information Administration, leading the elec-
tric sector compared with 30% for natural gas, and lesser amounts for coal and other sources. ME
Economic Outlook T
he Institute for Supply Management (IMS; Tempe, AZ) on Jan. 2 reported that economic activity in the manu- facturing sector expanded in December, following one month of contraction, and the overall economy grew for the 43rd consecutive month. The information is based on the latest Manufacturing ISM Report On Business, which surveys the nation’s supply executives.
The PMI registered 50.7%, an increase of 1.2 percent- age points from November’s reading of 49.5%, indicating expansion in manufacturing for only the third time in the last seven months. Readings below 50 indicate contraction, while those above 50 indicate expansion. This month’s PMI reading moved manufacturing off its low point for 2012 in November.