Solar industry capital expenditure in 2013 will hit a 7-year low

Although the photovoltaic supply chain global capital expenditure this year is expected to fall to its lowest level since 2006, but there are signs that investment downturn has bottomed, equipment purchases may soon rebound. According to the information and analysis provider IHS PV manufacturing and capital expenditure Tools, 2013 PV business capital spending will decline from $ 3.6 billion in 2012 to $ 2.3 billion, down 36%.

The expected decline in the 2013 capital expenditure of $ 2.4 billion in 2006 to its lowest level since. This also marks the market decline in 2011 after peaking the second consecutive year, the the 2012 photovoltaic industry spending plummeted 75%. However, capital expenditure is expected to rebound in 2014, an increase of 30% to 30 billion U.S. dollars. The photovoltaic business chain enterprises have been reduced capacity utilization, production line is idle in the past year and a half, "IHS solar panel analyst Jon-Frederick Campos said.

PV companies have been doing, trying to cope with excess capacity, alleviate the decline in average selling price pressure caused by this phenomenon in 2012 and so far in 2013, new manufacturing equipment spending fell sharply, however, as prices gradually stabilized, and some PV market manufacturing recovery, indications that the decline in capital spending may be coming to an end. "

2012: Solar Cataclysm 2012, the Photovoltaic Panels industry has been to speed up production, many companies focus on to achieve higher efficiency cells and modules. As a result, a plurality of steps in the manufacturing process increases.

However, this results in the increased capital expenditure, followed by a rise in operating expenses. Later, overcapacity, oversupply and prices plummeted holding the market center stage of the period of the past 18 months, companies suddenly have to reduce manufacturing steps.

At this stage, the cost reduction can also become support weak Margin key. Not according to this company eventually went out of business closed down. Solar cycle For now, the worst case seems coming to an end, there are indications that the decline in capital spending has bottomed out. Spending is finally expected to rebound in the short term, the industry will subsequently pick up. For example, in the past quarter, Latin America, the United States and the Asia-Pacific region a new production base, production also increased.

Sometime in the recent industry will come full circle back to the beginning again, "Campos said. "The solar market has experienced booming, and then because of the rapid success of their own suffering but once the dust settles, the industry will be operating, financial and technical aspects become more powerful. Remainder of the year is likely to determine which will retain a large market share and consolidate its position as the industry leader. "