Due to the inability of the supply chain to keep up with the surge in electricity consumption, it is expected that imports will meet 80% of the demand for power transformers.

US: Energy consulting firm Wood Mackenzie states that by 2025, the US is expected to face a 30% shortage of power transformers and a 10% shortage of distribution equipment, forcing utility companies to heavily rely on imports to meet demand.

The company stated in its report "Unlocking the US Transformer Supply Chain Crisis" that since 2019, demand for power transformers has surged by 116%, while demand for distribution transformers has increased by 41%, due to increased electricity consumption and aging infrastructure. Since 2020, electricity consumption in the United States has increased by 7%, reversing a decade long downward trend.

Ben Boucher, senior analyst at Wood Mackenzie, said, "Domestic manufacturing capabilities have been unable to keep up with the pace. By 2025, imports will account for about 80% of the US power transformer supply and 50% of the distribution transformer supply. This imbalance is increasing costs and delivery cycles, delaying grid projects needed to meet growing demand

It is expected that policy changes and new tariffs will worsen the situation. The recently passed "OBBBA" bill will reduce support for clean energy and affect the demand for step-up transformers. The upcoming tariffs, including a 50% tariff on copper starting from August, are expected to increase the cost of imported and domestically produced transformers.

Since 2023, original equipment manufacturers have announced a $1.8 new capacity expansion in North America. However, further investment is needed to stabilize the supply.

Boucher said, "The US transformer market is at a critical moment." He emphasized that standardization, labor investment, and raw material safety are crucial to avoid long-term shortages and cost increases.