We are aware of the dramatic impact China’s new solar production push has had on this fledgling US industry. (See my blog on Oct,19,2010) . Selling prices have dropped 30-40% in the past 2 years due the Chinese competition.
The Wall Street Journal (Dec. 1, 2010) tells the story of Greenville, Michigan’s loss of 4,000 jobs overnight in 2006 when Electrolux shut its refrigerator factory. When Uni-Solar broke ground on the 1st two of 6 giant new solar factories, the town of 8,000 saw the sun about to shine again. But quickly shrivelling in sales and unprofitable, Uni-Solar capped at only 400 employees and is already looking to move production abroad to India. 
Now as to why I share this story as a layout (Ch.9) topic: the twin solar plants (each more than 288,000 sq.ft.–the size of 5 football fields) sit side-by-side, part of building plenty of capacity for growth. But shortly after the plants were built, managers realized they could have instead doubled capacity “by simply attaching a small wing on the side of a plant and reconfiguring the floor plans to maximize the use of long rows of automated machines”. A very interesting quote!
The 2nd half of the tale you may want to share with students is the changing skill set needed (Ch.10) from the time the old Electrolux plant opened 28 years ago. Donna Cooper, 51, tells of her start in the old factory: “I had never had a job interview”. The screening process consisted of reading an eye chart and showing she could touch her toes. For Uni-Solar she had to go back to school at a community college, then through a terrifying series of job interviews, some 3-on-1. At $15/hour, she makes less than her old job paid. “High wages for unskilled workers is a thing of the past”, adds Cooper. This points to a structural change in our economy.
Discussion questions:
1. How common is the Greenville story?
2. What caused the sudden changes in the solar panel industry when everyone seeks “green” energy?
3. Discuss the new skill sets needed in manufacturing.
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