RAPID US WIND GROWTH EXPOSING OPERATORS TO NEW RISKS AND REDUCED ASSET VALUE DUE TO UNSKILLED WORKFORCE – RIGUP

- New report from developers of largest US energy marketplace and labor platform reveals significant skills shortage in US wind sector - Cost-cutting and increasing pressure to install and maintain expanding turbine fleet squeezing labor costs, threatening safety standards and increasing financial risks

Austin, 13th October 2020 - Increasing demand from operators to cut costs combined with rapid growth in US wind has led to contractors facing significant pressure to squeeze labor costs. Wind projects are now at considerable risk of reduced service quality and greater financial losses as a result.


This is according to Harvest, powered by RigUp, developers of the largest US energy marketplace and labor platform, which has highlighted the steps that operators, contractors and technicians urgently need to take in order to mitigate the skill shortage and ensure the long-term sustainability of the sector. This topic is discussed further in RigUp's latest report ‘Wind's Talent Crunch', released today.

The extension of the wind production tax credit in 2015 has led to significant gains in US offshore wind, with over 30GW added by the end of 2019 and the sector supporting over 120,000 jobs in all 50 states. Rising investor and manufacturer confidence has helped reduce costs to levels competitive with other energy sources, including fossil fuels.

But the increased focus on cost-cutting has exacerbated the pressure on contractors already stretched thin by rising turbine installation and maintenance demands. Many operators, upon seeing technological and material costs fall, have mistakenly assumed that operations and maintenance (O&M) costs can be reduced in tandem. Contractors are subsequently being pushed to cap technician training at lower skill levels, resulting in a shortage of highly qualified technicians despite growing demand for specialist services such as High Voltage.

This lack of highly skilled technicians results in delays to schedules and budgets with operators facing greater asset downtime, financial repercussions and inferior safety standards as a result.

RigUp have emphasized that the sector must prioritize the development of technicians by training core skills and offering career progression to drive up industry standards. By using highly trained technicians in conjunction with performance monitoring software, operators can implement comprehensive predictive maintenance approaches through on-site inspections and remote O&M systems - ultimately reducing costs and maximizing revenue.

Jed Van Sciver, President at Harvest Energy Services, said: "With US wind capacity set to grow at a significantly faster rate than the number of qualified wind turbine technicians, operators urgently need to wake up to the consequences of cost cuts for O&M contractors. Developing highly skilled technicians is crucial to the long-term sustainability of the sector and at RigUp, we can ensure that operators find the right contractor with the right technicians at a fair price."

To learn more, download the report here.

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ABOUT RIGUP

RigUp offers a range of services that support operators to ensure they receive high levels of technical support on their projects.

RigUp have been in the business of supporting operators since 2014 - with services spanning construction management, self-perform construction, turbine maintenance and repair, blade repair, plant operations and BOP services.

RigUp employees are backed by strong experience and a defined training program before they step foot on your project site. Each project is unique and matched with highly experienced technicians that are a perfect fit for the job.

For more information, please visit: https://www.rigup.com/


ABOUT HARVEST

Harvest Energy Services, Inc. is an independent service provider incorporated under the laws of Colorado in 2014 with offices in Boulder, CO and Tehachapi, CA. The team brings the highest level of service to the industry with a focus on safety and quality.

The Harvest team offers products in support of construction, operations, and maintenance. The Harvest approach is driven by continuous improvement and fundamental project management philosophies. The core commitment to our customers and employees ensures project success.

For more information, please visit: http://www.harvestenergyservices.com/

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