What is it like to open a new solar panel factory in a supply chain
The US solar industry best china aluminum window factory is eager to expand domestic manufacturing, but it is currently difficult to promote things. Between the disruption of the global supply chain caused by COVID and the constant tariffs on solar products, it takes a lot of courage to start a new business. Crossroads Solar has a difficult road ahead, but with strong community support, it is striving to succeed.The new solar panel assembler in South Bend, Indiana is small—it is expected to produce 12 megawatts of crystalline silicon solar panels in two shifts each year—but its mission is huge. Crossroads Solar's goal is to "produce perfect solar modules with the people who make mistakes." Crossroads employees are released felons who "served their time and won the opportunity to re-enter the labor market with dignity." The focus of this for-profit company is employment rather than solar energy output.
The idea behind Crossroads came from Patrick Regan, who recently served as a professor of political science and peace studies at the University of Notre Dame, and technology businessman Marty Whalen, both of whom taught college courses at the Westville Correctional Institution through the Moreau College Initiative. The two hope to find a more tangible way to change society's perception of crime and punishment, and provide work support for those previously imprisoned.
"I want to create a company that can prove that American manufacturing is competitive, and most importantly, the workforce we often abandon due to past crimes can be a source of such competitiveness," Reagan said. Regarding the solar energy industry as a 21st century enterprise, he believes that the solar module manufacturing entity is the perfect way to maximize the three Ps: people, earth, and profits.
Crossroads activates employees at a price of $16 per hour, and provides insurance and retirement assistance. In the first shift, 12 people will produce 60 and 72 monocrystalline solar panels on the floor. Reagan said that further growth depends on the market and supply-which is now causing considerable headaches.
Solar Power World went to Indiana and saw that the new plant finally started in September 2021, two months later than Crossroads Solar's original plan. We discussed with Regan the difficulties of starting a new solar panel factory today, whether driven by mission or not.
Reagan: All this is after the panel is produced and certified [completed at the end of 2020/early 2021]. I received an email from a supplier saying "Your product will be delivered on July 15", which is our expectation. We expect our works will arrive in mid-July 2021, and they will arrive in mid-September.
I am not a supply chain expert, but this is my thinking in the context of political science: we have built a system that has been in equilibrium for decades, in which products and containers flow seamlessly across the earth. When they were closed due to COVID in March 2020, the container stopped in place. The system is out of balance. When we start again, everyone wants Chinese products, but all the containers are here. No one wants to ship empty ships with containers to products. It still has not been resolved. Until this balance is re-established.
Regan: I bought equipment from Spain, Mexico, and Germany. I don’t have a lot of money, and I need to buy equipment, so I initially looked at second-hand equipment. It may be a good device, but it is outdated. It doesn't make sense to pay the same price for the equipment, because I will soon produce panels that no one wants. I looked at new equipment outside of Mexico and enriched the value of the equipment in this place with more than $1 million. So I went to China. I did some research and looked at several factories, and the price was a quarter of it. So I bought Chinese equipment. But then COVID closed China in January 2020, when our equipment was planned to be produced, and then we were unable to import it. It just stretched out.
Reagan: I expect the framework will come from here. We are near Elkhart, Indiana, which is a large aluminum extrusion press used in the motorhome industry. I have contacted them many times and they just told me they were too busy to deal with me. To my surprise, I couldn't find a local aluminum extrusion machine to make our frame. So I ship from China, which seems to be the industry standard. I paid a 111% tariff for these frameworks.
I originally bought EVA and backplanes from the United States, but in the world of startups and small companies, they treat me like I won't be by my side tomorrow. I like their stuff, but what they send me are old ready-made products. When it just bubbled, they said it had been on the shelf for three months. Because the quantity I need is very small...I bought EVA and backsheets from India, and it turned out not to be cheaper than what I bought in the United States. It's just that I have confidence in [quality]. Before they saw that I would do business, I thought they would always treat me badly in this regard.
There are some things you can't buy in the United States. I know that there is no battery supplier in the United States, so the battery will come from overseas. I was surprised by this. On our initial webpage, I said that I would purchase everything from the United States. That is my hope. It didn't work like that.
Reagan: The difficult part is that everyone wants the supply chain to be swallowed up more during the Christmas holidays, so much so that Target and Home Depot have rented their own freighters to ship their products. This makes it difficult for people like me who carry a single container. I guess other larger solar manufacturers are going through the same thing, they just have more ability to weather the storm.
We will produce solar panels and sell them. I have been in discussions with the RV industry because I have RV certified panels. We are discussing with design and installation personnel in the area. We will sell panels to generate revenue to buy more products. I hope to come without forcing us to sleep. Once our current products are used up, in order to keep our production, I now have to order things before they can get on the ship. Places like Target and Home Depot are absorbing all the changes in transportation. If I don’t participate in the competition now, we will have to close for a few months until the supply chain delivery process comes into play on its own.
I have no cash to order now. I have to make income generate cash. In the initial model, it will do well because I now have enough products to sell panels and cash to order. I will order within a six-week window. But now the delivery time has changed from six weeks to 18 or 24 weeks. It is really difficult for people like me to do it. I hope it will succeed.
Kelly Pickerel has more than ten years of reporting experience in the US solar industry and is currently the editor-in-chief of Solar Power World.
"Crossroads employees are released felons. They "serve their time and win the opportunity to re-enter the labor market with dignity." The focus of this for-profit company is employment, not solar energy output."
It’s not an attempt to get rid of arrogance, indiscretion, or just harshness, but when looking at statistics on the number of prisoners released each year, people have provided ample supply of labor that needs to find work to support themselves, and have helped them “update” their lives many times. The family unit is engaged in paid work after release. Tribute to Patrick Regan and Marty Whalen, whose vision is to create employment opportunities in the United States for those who can definitely use the job.
"There are some things you can't buy in the United States. I know that there are no battery suppliers in the United States, so the batteries will come from overseas. I was surprised by this. On our original web page, I said that I would purchase everything from the United States. That is my hope. It doesn't work like that."
Sad but true, this is "illustrating" how American companies have failed to establish and integrate a strong supply chain among American boarders. It has become a (national security issue) on many levels. It is devouring American manufacturing, making "offshoring" attractive to corporate culture and continuing to reduce American labor.
"There are some things you can't buy in the United States. I know that there are no battery suppliers in the United States, so the batteries will come from overseas. I was surprised by this. On our original web page, I said that I would purchase everything from the United States. That is my hope. It doesn't work like that."
Kelly Pickerel, thank you for your valuable glimpse of American manufacturing and the rest of the world. This should be sixty minutes to show (why) there are manufacturing problems in the United States, from starting a company to "feeding" a company with a domestic supply chain. The United States and many industrialized countries are catching up with China and want to rise to the point where they are only doing "economies of scale" instead of dealing with "economies of scope" proactively.
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