No market is ever the same, we know that by now. But the North American one is a special case, to say the least. Speed dictates how the game is played. Details and insights are shared with us by Jason McDonald, Senior Vice President – Regional General Manager, Central & Renewablesat Integrated Power Services (IPS), the leading North American and United Kingdom aftermarket service provider for power management and electromechanical rotating equipment. Wind energy contributes about 11% of the annual revenue of the company.
Time for some deep insights!
Can you explain to us how your business model in the USA works?
Jason: “We primarily work with Operations and Maintenance (O&M) companies across North America, which can include OEM turbine manufacturers, end users who self-perform, or O&M companies. We provide engineered solutions to extend the runtimes of their equipment. Our services include distributing parts, up-tower field services, in-shop generator repair, and power management of wind turbines.”
You work with an inventory of different coils. Why so and how does it work?
“In North America speed is crucial. Our customers have a limited number of spare generators. When they need to replace a generator, a refurbished one needs to be ready immediately to save on crane costs and downtime. Stocking coils helps our customers avoid having to increase their inventories. For our customers who self-perform, we own a fleet of generators to support them.”
Which advantages do you encounter while working this way?
Jason: “Our size allows us to maintain the inventory needed to react quickly to our customers' needs. Additionally, our large network of locations keeps us close to wind farms for quick response times.”
Do you also face difficulties?
Jason: “The repowering of wind farms reduces the number of turbines we can repair. This often happens with little to no visibility, leaving us with unwanted inventory and revenue drops.
In response we are finding ways to partner with repower customers, so we don’t lose out completely. This includes selling repower components or providing labor.”
Can you highlight how Coil Partners contributes to the success of IPS?
Jason: “Coil Partners has been extremely patient as we've worked to qualify them as a vendor outside the United States. That was the first crucial step in our collaboration. Their technology and engineering are unparalleled in coil manufacturing. Truly world-class! With their brand-new Houston-based facility we couldn’t be happier. We’re looking forward to a bright future together!”
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