The list of things that depend on transformers is long: new housing, EV chargers, renewable projects, and more. That’s why skyrocketing lead times and prices for grid equipment that raises or lowers voltage is a real problem.

The wait for a new transformer has jumped to over two years, according to WoodMackenzie. Back in 2020 it took just a few months, according to Tim Mills, CEO at transformer manufacturer ERMCO. WoodMackenzie found that prices, meanwhile, have risen over 60% since 2020. 

So what’s causing the shortage?

In this episode, Shayle talks to Tim about how rising demand for transformers has pushed manufacturers to capacity – and why it’s been so hard for manufacturers to expand that capacity.

They also cover topics like:

• The state of the shortage, including prices, lead times and types of transformers that are in especially short supply.
• The major drivers of demand growth, including renewables, storms, federal investment, and EV chargers.
• How the housing boom and bust of the 2000s left transformer manufacturers wary of bubbles in demand.
• Why the tight labor market makes it hard to expand manufacturing capacity.
• How new rules proposed by the Department of Energy are throwing uncertainty into what type of equipment manufacturers should invest in.

Recommended resources:

• WoodMackenzie: Supply shortages and an inflexible market give rise to high power transformer lead times
• T&D World: No Easy Answers: Transformer Supply Crisis Deepens

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