Renewable Energy: An Industry Outlook of Current and Future Trends
Kris Beezley, SVP of Strategic Business DevelopmentThe renewable energy industry has momentum like never before. As the motivation to respond to climate change gets stronger worldwide, more corporations and governments are prioritizing sustainability. The evidence is everywhere you look: in the marketing of consumer goods, automotive market trends, favorable government policies, and corporate social responsibility statements.
In a 2021 survey of 17 advanced economies spanning North America, Europe and the Asia-Pacific region, 72% of people were concerned that global climate change would harm them personally at some point, and 80% were willing to make at least some changes to how they live and work to reduce the effects of climate change. And yet only 56% agreed that society as a whole is doing a good job with our climate response. From the perspective of the general public, renewable energy has plenty of room to grow. Institutional investors agree, as they direct more resources towards renewables year over year.
As a longtime partner supporting the energy industry, Lamons is steadfastly committed to sustainability. That’s why we watch for trends and opportunities to build the future of renewable energy and steward our world’s resources wisely.
Current Forces Shaping the Renewable Energy Industry
Although wind, hydroelectric, geothermal, and alternative fuel energy are all experiencing unique pressures of their own, some universal trends are clear across sectors.
1. Increasing competition
Clean energy startups now share the field with large traditional energy companies who seek to demonstrate increased corporate responsibility by diversifying their portfolios. With over 70 years of experience partnering with traditional energy companies, Lamons understands exactly how the oil and gas industry is changing. Using our expertise in new component design and prototyping, we’ll help both new and established customers respond to increasing competition. Regardless of energy type, we’re always strategizing new ways to help our customers move towards greater efficiency and sustainability.
2. Supply chain disruption
Renewable energy is not immune to the economic disruption caused by COVID-19. Even as some emerging energy sectors are still in the process of building reliable supply chains, global upheaval throws out new challenges for construction, operation and maintenance.
3. High demand for trusted manufacturing partners
Many renewable energy sectors are still relatively new on the scene. Like the industry itself, the renewable energy workforce is less tenured than its traditional O&G counterparts. This is a major factor that shapes how renewable energy companies select their manufacturing partners.
A less tenured workforce is looking for support from highly experienced manufacturers, and a shorter industry track record heightens the need for ironclad quality assurances on manufactured components.
With these general themes in mind, let’s take a look at individual trends in each renewable sector.
Trends in Wind Energy
Compared to other renewable energy sectors, wind is currently showing the most growth. To stay competitive, companies are looking for high-volume component manufacturing at the most competitive price possible. To the extent that wind companies rely on global manufacturing partners, they are also at the mercy of global supply chain issues.
As a manufacturer and distributor of industrial fasteners, gaskets, and custom-made hoses for a variety of industries, Lamons is positioned to relieve some of this pressure. Our global footprint in 21 locations includes specialist manufacturing facilities in Houston and Denver, providing North American wind companies with a domestic manufacturing resource that can handle high-volume orders. By leveraging our efficiency and expertise, Lamons offers the competitive pricing that wind companies can depend on to keep pace with their needs.
Trends in Hydroelectric, Geothermal & Alternative Fuels
Growth in hydroelectric power, geothermal energy, and alternative fuels is steady, although these sectors are not yet as competitive as wind energy. Right now, companies in these three sectors are looking to relieve a major pain point: loss of production. In some cases, even a single hour of downtime at a facility can translate to millions of dollars lost.
With productivity as a constant priority, companies are seeking to form close working relationships with manufacturers who can promise extremely high quality assurances and bespoke service. Lamons is ready to meet and exceed those standards. Through expertise in right-sizing equipment and reverse engineering, we’ll help optimize operational performance. And with our 24/7 customer service, industry-leading response time, and easy ordering process, we can provide the fast turnaround and high reliability that these renewable sectors demand.
Future Predictions for Renewable Energy
What can current trends in renewable energy tell us about the future state of the industry? One insight is particularly clear: growth is a given. Investment interest shows no signs of slowing, and technology improvements will keep lowering the barrier to entry for wind, hydroelectric, geothermal, and alternative fuels.
Beyond expansion in these established sectors, what else is on the horizon? We see plenty of potential for an emerging sector to become a headliner: hydrogen power. Large companies are already prepping to be hydrogen-ready, signaling that hydrogen power could become a major renewable energy source in as little as two to three years.
As the world’s relationship towards energy changes, we’ll keep an eye on evolving trends so we can anticipate the future needs of our renewable energy customers. Regardless of industry sector, we’ll continue our commitment to innovation that builds a sustainable future.
