In the second half of the year, the shipment ratio of PV industry orders will drop significantly

According to the latest issue of PV Equipment Quarterly, published by Solarbuzz, the order shipping ratio in the first quarter of 2011 was maintained at an average level of 1.01. In the second half of 2011, the expected order shipment ratio will decline significantly until the fourth quarter of 2011, rebounded. The new orders will mainly come from the expansion of silicon material manufacturers and the next phase of capital expenditures for ingot-to-crystalline silicon module equipment.

The order-to-bill ratio is derived from the comparison of new orders and turnover over a fixed period and is the ratio of demand to supply in the equipment supply chain. The order-to-ship ratio for the first quarter of 2011 was 1.01, indicating that PV manufacturers would receive $101 in new orders for every $100 of revenue confirmed.

Solarbuzz senior analyst Finlay Colville commented: “The current equipment suppliers are still facing an extremely fragmented market. Hundreds of potential customers are each at different technological maturity and product competition. Understanding the order-to-ship ratio of different manufacturing equipment And future trends, which can provide reference for manufacturers to formulate market strategies."

In 2009 and 2010, even second-tier and third-tier photovoltaic manufacturers can easily obtain the financial support needed for capacity expansion, resulting in a large number of photovoltaic equipment needs. However, in 2011 and 2012, equipment manufacturers will face severe tests due to the reduction of expansion plans by photovoltaic manufacturers. Some equipment manufacturers rely too heavily on the expansion of the production capacity of crystalline silicon cells from European manufacturers and Chinese second-tier manufacturers, as well as speculative thin-film battery investments, which will lead to a sharp drop in the ratio of order shipments.

Finlay Colville added: "The equipment manufacturers expecting new orders for these customers, as well as those with lower share of first-tier Asian companies, will face greater risks in 2012."