Low margins and high risks

Solar EPCs in the US are competing for fewer projects. Increased specialization, efficiency improvements, and accelerating mergers and acquisitions are among the strategies used by the companies to survive.

One way to control margins is to manage projects systematically. “The amount of wasted time per project is in the 30% range”, says Heiko Schramm of Sunstall.Key points:

• As EPCs struggle with low margins, they are being asked to take on more risk.
• Large EPCs are pursuing smaller projects.
• Higher efficiency in project management may help to differentiate EPCs in the future
• EPCs are engaged in an accelerated level of mergers and acquisitions

If you want to read more go to pv-magazine and read Charles W Thurston’s article.