Manufacture of Heavy Electrical Equipment in Developing Countries

Abstract

Factors in the growth and competitiveness of the heavy electrical equipment industry in developing countries are examined. Heavy electrical equipment includes equipment for power generation, transmission and large motors, and electric furnaces for industry. Prices and costs in developing countries are compared with those of the international market. Heavy electrical equipment is generally custom designed and expensive, requiring design capability and substantial skill in manufacturing. The industry is very dependent upon outside financing. Because of intensive competition in conventional items of equipment, the bulk of the profits are earned on items where a particular firm has pioneered new developments. The key to success in the manufacture of heavy electrical equipment would seem to involve an efficient buildup of capacity, government policies aimed at an even flow of orders for the local industry, efficient management, and research and development permitting good profits on advanced types of equipment where world market prices are relatively high. Sixteen tables and nine figures are provided.