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 ([ Ссылка ]) . Back in 2020 it took just a few months ([ Ссылка ]) , according to Tim Mills ([ Ссылка ]) , 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 ([ Ссылка ]) : Supply shortages and an inflexible market give rise to high power transformer lead times


•
T&D World ([ Ссылка ]) : No Easy Answers: Transformer Supply Crisis Deepens





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