Saturday, December 6, 2008

Agglomeration Economies Help the Cluster Spread

Once an industry, like wind power, gets established in a given geographic area, up and downstream participants get drawn into the area by the positive externalities of being located near suppliers, competitors, workers and related service providers. This is clearly starting to happen in Colorado for various sub sectors in the alternative energy ecosystem.

This from The Denver Post.

"WINDSOR — Aerospace products maker Hexcel Corp. plans to open a plant in Windsor next year.

The company supplies Vestas Wind Systems with composite materials that are used to make wind turbines. Hexcel will open its plant near Vestas' blade-making plant in Windsor, about 50 miles north of Denver.

Construction of Hexcel's plant is expected to begin this month and the plant should open late next year.

Hexcel chairman and CEO Dave Berges says demand for wind turbines is expected to grow now that 30 states have pushed utilities to use more renewable energy.

The Stamford-Conn.-based company hasn't announced any details about how many new jobs the plant will bring."

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