Turbine Manufacturing

Turbine Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture turbines (steam, hydraulic, gas, and wind) and complete turbine generator set units. Major manufacturers include divisions of Caterpillar and GE (both of the US), as well as Hitachi (Japan), Siemens (Germany), Vestas Wind Systems (Denmark), and Goldwind (China).

COMPETITIVE LANDSCAPE

Demand for turbines is driven by the level of overall industrial activity, and growth in the power generation industry. The profitability of individual companies depends on engineering expertise and efficient production. Large companies have economies of scale in purchasing. Small companies can compete effectively by specializing in niche turbine applications. The US industry is highly concentrated: the top 50 companies account for more than 95% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major US product categories include turbine generator sets, which account for 50% of the industry's revenue. This is followed by turbines and turbine generators (25%) and parts and accessories for turbines (about 25%). Other products also include gas turbines, contract manufacturing services, and metal processing and metalworking contract manufacturing. Smaller turbines can be used as mechanical drives for industrial processes like oil and gas production, and for use in turbine generators and generators sets which produce electrical power on a smaller scale for back-up power.