The LA Times has an article chronicling the attempt by Eaton Rapids, Michigan-based Dowding Industries as it attempts to make the transition from manufacturing auto supplies to making wind turbines. The company took out a $12 million loan to retool their plant to make parts for the new green economy but things have been rough going so far.
The article notes that the biggest problem encountered by Dowding is lack of demand for the wind turbines they are now set up to manufacture, largely due to the recession and the tight credit markets making wind turbine projects difficult to get financing for. The company has made a full transition to a new kind of manufacturing only to find that demand for the things they can build has not grown as they had anticipated.
They embarked on the transition at the encouragement of the government and industry experts, who predicted that auto supply companies would have to diversify in order to survive. The company now has a very high debt load and little business, forcing them to scrounge up business making parts for satellites, dump trucks and subway cars in order to keep up with their loan payments rather than doing what they thought they’d be doing, building wind turbines.