The US offshore wind energy sector is facing significant setbacks, as companies that had committed to investing in offshore wind infrastructure and supply chains are pulling back. These delays and cancellations come in the wake of former President Donald Trump's opposition to offshore wind energy and his plans to halt federal support for these renewable energy projects.
This development reflects a sharp downturn in the US offshore wind industry over the past two years, resulting in costly delays, increased expenses, and the failure of numerous proposed offshore wind farm projects. The ripple effect from these failures is being felt across the national supply chain, with thousands of planned jobs at risk and billions of dollars in investments potentially lost.
Stephanie Francoeur, Senior Vice President of Marketing and Communications at the offshore wind industry trade group Oceantic, highlighted the widespread impact of project cancellations. “When an offshore wind project fails to move forward, it creates a ripple effect across businesses and industries, affecting states nationwide.”
As the US offshore wind sector struggles, it underscores the critical importance of policy support and investment in the renewable energy industry for long-term growth, job creation, and sustainability.
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The GEP Global Supply Chain Volatility Index was -0.21 in January 2025, showing that global supply chains are running efficiently.
Key Takeaways:
North America: U.S. factories are increasing purchases, but Canada and Mexico are cutting back.
Europe: Manufacturing remains weak, especially in Germany, France, Italy, and the U.K.
Asia: Strong demand in China, India, and South Korea is pushing factories to full capacity.
Supply Chain Trends:
Material Shortages: Lowest in five years, meaning supplies are easy to get.
Labour Shortages: Fewer workers, causing delays in orders.
Transportation Costs: Rising, now at a six-month high.
Overall, global supply chains are stable, but rising costs and labor shortages could cause future problems.
For more details, visit http://www.gep.com/volatility.
Explore the latest edition of Journal of Supply Chain Magazine and be part of the JOSC Daily News Bulletin.
Discover all our upcoming events and secure your tickets today.
Journal of Supply Chain is a Hansi Bakis Media brand.