Wind Turbine Manufacturers in the U.S.: Locations and Local Impacts
WINDPOWER 2010 Conference and Exhibition Dallas, Texas Suzanne Tegen May 26, 2010
NREL/PR-6A2-47913

NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

Challenges to modeling Renewables
Renewables represent new industries
• Not isolated as an industry in conventional I/O codes

Requires detailed knowledge of project costs and industry specific expenditures
• Equipment, Engineering, Labor, Permitting, O&M, etc.

The Wind JEDI Model
• Provides a project basic project recipe for specific RE technologies • Applies Industry Specific Multipliers derived from IMPLAN
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Jobs and Economic Impacts from the JEDI Model Wind Energy’s Economic Impacts
JEDI Model Version W1.09.03e

Local Revenue, Turbine, & Supply Chain Impacts Project Development & Onsite Labor Impacts
•Construction workers •Management •Administrative support •Cement truck drivers •Road crews •Maintenance workers •Legal and siting
•Blades, towers, gear boxes •Boom truck & management, gas and gas station workers; •Supporting businesses, such as bankers financing the construction, contractor, manufacturers and equipment suppliers; •Utilities; •Hardware store purchases and workers, spare parts and their suppliers

Induced Impacts
Jobs and earnings that result from the spending supported by the project, including benefits to grocery store clerks, retail salespeople, and child care providers

Construction Phase = 1-2 years Operational Phase = 20+ years

3

3

Project Development & Onsite Labor
Sample Jobs: Truck Drivers Crane Operators Earth Moving Cement Pouring Management Support

istcok 9476787

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Turbine & Supply Chain Jobs and Equipment

Steel mill jobs, parts, services - Equipment manufacturing and sales - Blade and tower manufacturers istock 7792082 istock 4088468 istock 8433850 istock 8384987

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Property taxes - Financing, banking, accounting
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Induced Impacts istock 8783332

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Money spent on local area goods and services from increased revenue: sandwich shops, child care, grocery stores, clothing, other retail, public transit, new cars, restaurants, medical services istock 8007815

istock 3275965

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Istock 8913075

240-MW Iowa wind project • $640,000/yr in lease payments to farmers • $2M/yr in property taxes • $5.5M/yr in O&M income • 40 long-term jobs • 200 short-term construction jobs • Manufacturing?
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Examples of JEDI at Work: Wind projects offer competitive salaries
Median Household Income (2007$) in counties where the six largest wind power projects are located compared to wind farm salaries
$100,000

Median Household Income/Salary

$90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Bent Logan Prowers Weld Lowest salary Highest salary

Reategui, NREL 8

Manufacturing projections in Iowa
Landowner Payments
$5,000

Property tax payments Operations Period Construction Period

Dollars in millions

$4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0

Wind 0% IA manfacturing

13% Local manufacturing Incremental Projection 35% (current proposed projects) (based on current manufacturing capacity)

S. Reategui, NREL, 2009
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In recent years, Arkansas has successfully attracted wind turbine component manufacturers. With four companies having announced/opened major facilities, approximately 2,500 jobs will be supporting the wind industry in the near future.
Opened and Announced Wind Turbine Component Manufacturers Located In Arkansas and Surrounding States
1) RBC Bearings 2) RTLC Wind Towers 3) Zoltek 4) Tower Tech 5) CAB Inc 6) Diab Inc 7) Trinity Structural Towers 8) All-Pro Fasteners 9) Molded Fiber Glass 10) Thomas & Betts 11) GE Parts Operation Center 12) LM Wind Power (formerly LM Glasfiber) 13) Bergey Wind 14) DMI 15) Martifier 16) Lufkin Industries 17) Polymarin 18) Wind Water Technology 19) Nordex

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LM Wind Power
Little Rock, AR Blades

 At the end of 2008 and two new plant launches, LM Wind Power Little Rock employed ~ 600 people and were ahead of pace in their hiring of 1,000 workers by 2014.  In January, 2009 LM Wind Power announced that they were laying off 150 workers at Little Rock due to the national credit crisis.  In June, 2009 the company announced that they will be laying off an additional 80 workers, again as a result of the economic credit crisis.   The company still employs ~ 300 workers Wages at the plant range from $12.15/hr $15.50/hr.

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Prior to starting production of a new blade model, LM Glasfiber tries out a prototype in a test bed. The blade is subjected to a strain corresponding to 20 years of operation. Photo courtesy of LM Wind Power Innovation for Our Energy Future

Brevini Wind
Muncie, IN Gear Boxes

According to Brevini Wind contacts,  Announced 8 October 2008, and is now under construction  Will employ ~455 workers  Average will be ~ $46,000 per year  The plant is expected to be fully staffed and operational in the third quarter of 2010  Annual payroll when fully operating will be $20.9 million  Incentive package for Brevini includes: $1.4 million in local EDIT (Economic Development Income Tax) funds $1.6 million in local TIF (Tax Increment Financing) funds $1.9 million in infrastructure improvements for a rail extension $3.9 million in state funds in Hoosier Business investment tax credits $300,000 in job training assistance funds
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Over 70 companies manufacturing components in Great Lakes region (2009)
Opened and Announced Wind Turbine Component Manufacturers Located Near or In the Great Lakes Region
21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. Cast-Fab Technologies Inc Cardinal Fastener & Specialty Co Federal Gear Corp Canton Drop Forge Michael Byrne Manufacturing Co Inc Advanced Manufacturing Corp Dyson Corp Webcore Technology Inc Horsburgh & Scott Co Hamby Young Owens Corning Composites Minster Machine Co Hyundai Ideal Electric Co Eaton Corp Swiger Coil Systems LLC Connector Manufacturing Co EGC Enterprises Inc HPM America Tuf-Tug Products Benjamin Co LAH Development Parker Hannifin ATI Casting Service Fairfield Manufacturing Co Inc Brevini Bedford Machine and Tool Inc Finkl & Sons Trinity Structural Towers Centa Corp Winergy 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. Winergy/Siemens Brad Foote Gear Works Inc GE Energy Hodge Foundry Inc Gamesa Wausaukee Composites Inc Plexus Corp Merit Gear Corp Tower Tech Systems Inc Bassett Mechanical Milwaukee Gear Co Energy Composites Corp Wausaukee Composites Inc VEC Technology LLC Milacron Inc American Tank & Fabricating MasTech Vela Gear McSwain Manufacturing Edco Inc Graco Michigan Tool Ashland Performance Materials

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

K & M Machine-Fabricating Inc Great Lakes Gear Tech Inc Merrill Fabrication Dowding Industries Danotek Motion Technologies Creative Foam Corp Genzink Steel Citation Corp Three M Tool & Machine Inc E-T-M Enterprises

11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

ATI Casting Service Global Wind Systems Great Lakes Towers Prestolite Wire LLC Akebono Corporation Johnson Systems Inc Rotek Inc Avon Bearings Corp Kalt Manufacturing Magna Machine Co

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Company
Alstom Power Inc Ingeteam Ingersoll Machine Tools Schuff Steel Aluwind WindStream Technologies Inc

Location
Amarillo, TX Milwaukee, WI Rockford, IL Bismark, ND Castle Rock, CO New Albany, IN

Component
Nacelle Generators Various Towers Various Small scale turbines

Jobs
275 275 87 275-300 80-105 260

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High Level Business Strategy (states have minimal influence)
 Reduced operating costs  Improved access to high potential markets  Clustering Efficiencies  Regional Infrastructure  Workforce characteristics

Specific attributes associated with individual sites (states have some influence)

 Immediate Local infrastructure  Business and Government Relations  Local incentives (fiscal or financial)  Potential competitors or suppliers  Quality of life variables  Public investment in the broader community  Community enthusiasm/support

From NREL Technical report by Eric Lantz (2010) National Renewable Energy Laboratory Innovation for Our Energy Future

Vestas in Colorado

Photo: Vestas Wind Systems A/S

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From a preliminary evaluation by LBNL, April, 2010

• The Section 1603 cash grant program has been heavily used by renewable project developers. • The grant program may have helped directly motivate as much as 2,400 MW of wind power capacity to be built that would not otherwise have come online in 2009. • The 2,400 MW of wind power capacity that may have been enabled by the grant are estimated to have supported approximately 51,600 short-term full-time-equivalent (FTE) gross job-years during the construction phase, and 3,860 gross long-term FTE jobs during the operational phase.
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The Team Manufacturing: Frank Oteri Billy Roberts Jobs and Economic Impacts team: Eric Lantz Sandra Reategui Stephen Hendrickson Funding: Larry Flowers, Wind Powering America Suzanne Tegen, NREL Suzanne.Tegen@nrel.gov

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