We are seeing a warming trend in the solar industry, with Flextronics, Celestica and others publicly talking up the renewable energy sector.
In Juárez, Flextronics’ manufacturing plant has reached its maximum capacity production of 1.3 million solar panels a year.
Meanwhile, Celestica poured millions of dollars in the June quarter into ramping production for solar lines in Asia. Speaking to analysts on July 23, CFO Darren Myers said, “[W]e think there is a lot of exciting opportunities for us within solar.”
It was just five years ago when the solar industry was growing like gangbusters, fueled by massive government investments and incentives. Then came the crash in 2012, which prompted some conglomerates to offload units (read: Dover) that had become dependent on those markets.
But the market has heated up again. In the US alone, one major trade group believes the installed solar panel capacity will double, to 40GW, between in 2014 and the end of next year. Another industry watcher forecasts a 36% gain worldwide this year alone.
Whether the gains will sustain themselves after US government tax credits on home installations run out is anyone’s guess. For now, at least, EMS companies are once again basking in solar’s warm glow.