Home Back Issues Jan/Feb 2012 Clouds over solar power

Clouds over solar power

| Print |  Email
Articles - Jan/Feb 2012
Thursday, January 19, 2012
Article Index
Clouds over solar power
Page 2

 

0112_Solar_01
Making a solar panel at the manufacturing facility in Hillsboro.

Indeed, China’s push for a place in the U.S. solar market has been aggressive. And during its ramp-up, seven U.S.-based solar companies have closed or downsized over the 18 months that prices fell, with layoffs at five others. Those include some of the nation’s biggest players. BP Solar cited the global market when laying off 320 in Frederick, Md., in March 2010 and moving manufacturing to China and India. Evergreen Solar blamed China for its plant shutdown and layoff of 800 in Devens, Mass., before also sending manufacturing overseas. SolarWorld’s Ben Santarris, who is coordinating the company’s trade case, says SolarWorld closed its commercial hub in Camarillo, Calif., in September, laying off 186 workers. Santarris says American-based solar manufacturers can compete with Chinese companies on price, and possibly have an advantage: China’s low-wage workforce doesn’t compensate for the cost of importing raw materials and shipping products back to the U.S.

The coalition’s push for government intervention, called the Coalition for American Solar Manufacturing or CASM, is an attempt to save the solar industry in the United States, Santarris says, with benefits for Oregon and beyond.

“If we don’t prevail in the filing, then much, if not all, of the Western operators will go out of business,” says Santarris. “I don’t see how anybody could make a case that this is good for the marketplace, energy security, for the environment, or the economy long term.”

Oregon Sens. Jeff Merkley and Ron Wyden supported the coalition’s petitions, and the Department of Commerce could place tariffs on Chinese solar imports as early as March. The senators say the move is in part an attempt to bolster a renewable energy future for the United States. They also say maintaining solar is critical to the Oregon economy.

Merkley, who pressed the World Trade Organization for more oversight of China’s trade practices last fall, doesn’t want the Oregon solar industry to become another casualty of unfair trade, like Oregon’s paper mills, driven out of business in part by Chinese demand for recycled paper. In the steel industry, American manufacturers have made claims that echo those in solar: The Chinese government subsidizes its now massive steel industry and makes it difficult to compete.

But the irony of a German company fighting for free trade in the United States isn’t lost on some, who fear potential for fallout in the form of rising prices or increased tariffs in the trade world.

That criticism is voiced even within the solar industry, where U.S.-based manufacturers reliant on Chinese components have formed their own coalition to push back against CASM, called the Coalition for Affordable Solar Energy (CASE). They argue cheaper products make for faster solar adaptation by consumers and a more robust market. On Dec. 20, the coalition sent a letter formally asking CASM to stand down. Players in Oregon’s solar industry are also divided.

For companies selling into the Chinese market, the mantra is: “A trade war that starts setting up tariffs and all the rest of it will cut into our sales and our opportunities in China,” says Norm Eder, executive director of Oregon’s Manufacturing 21 Coalition, which advocates for industry. From their perspective, “they sure as heck don’t want to have a trade war,” says Eder, even as companies who compete directly with China cheer CASM’s efforts and scrutiny into Chinese subsidies.

While some of Oregon’s larger export industries look on, those in lumber and logs, forest products, wheat and potatoes say they aren’t worried yet, and aren’t sure they should be.

The potential for backlash, however, is not a small concern for the likes of Horowitz, who notes that while much of Oregon’s GDP comes from exports — the vast majority from computer, electronic and agricultural products — unintended consequences lurk.

“Nobody knows what the other side might do in retaliation,” he says.



 

More Articles

Wheel man

March 2014
Tuesday, February 25, 2014
BY LINDA BAKER

Les Schwab has put a premium on customer service since 1952, when legendary namesake Les Schwab founded the company with one store in Prineville. (Schwab died in 2007.) But if the corporate principles remain essentially the same, the world around this iconic Oregon business has changed dramatically.


Read more...

100 Best Companies to Work for in Oregon [VIDEO]

News
Monday, March 03, 2014

Screen shot 2014-03-03 at 11.26.47 AM

Check out interviews with employees from some of the 100 Best Companies to Work For in Oregon winners and find out what makes their company a great place to work.


Read more...

The 2014 List: The Top 34 Medium Companies to Work, For in Oregon

March 2014
Thursday, February 27, 2014

100best14logoWebOur 100 Best Companies project turned 21 this year, so pop open the Champagne. Our latest survey gives us plenty to cheer.

 


Read more...

On fire

March 2014
Tuesday, February 25, 2014
BY JESSICA RIDGWAY

A self-proclaimed “chile head,” John Ford “grows, eats and does everything spicy.” 


Read more...

The solution to youth unemployment

News
Thursday, February 27, 2014
02.27.14 Thumbnail TeenworkBY ERIC FRUITS

Because they have little chance of working for someone else, today’s teens need to be entrepreneurs. But, first, we must teach our teens that entrepreneurship starts small.


Read more...

Powerlist: Meeting perspectives

March 2014
Tuesday, February 25, 2014

BY BRANDON SAWYER

A conversation about the event-planning industry with sales directors from McMenamins and the Portland Art Museum. 


Read more...

Why I became an educator

News
Tuesday, March 04, 2014
03.04.14 thumbnail teachBY DEBRA RINGOLD | GUEST CONTRIBUTOR

How can we strengthen the performance of institutions charged with teaching what Francis Fukuyama calls the social virtues (reciprocity, moral obligation, duty toward community, and trust) necessary for successful markets and democracy itself?


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS