Wedoany.com Report-Aug. 16, A Wood Mackenzie report forecasts a 30% deficit in U.S. power transformer supply and a 10% shortfall in distribution transformers for 2025, driven by rising electricity demand, clean energy growth, and aging infrastructure outpacing domestic manufacturing capacity.

Since 2019, power transformer demand has increased by 116%, and distribution transformers by 41%. Imports are expected to meet 80% of power transformer needs and 50% of distribution transformer needs in 2025. Ben Boucher, Senior Analyst, said: “This imbalance is escalating costs and lead times and is delaying new plant connections.”

New tariffs, including a 50% copper levy starting August 2025, will raise costs for both imported and domestic transformers, adding pressure to the supply chain. Policy shifts are also expected to impact clean energy support, further complicating market dynamics.

Original equipment manufacturers have invested $1.8 billion in North American capacity expansion since 2023, but Wood Mackenzie indicates more funding is needed to address ongoing demand. Boucher noted: “Supply constraints threaten the US energy transition and grid reliability goals,” calling for action in manufacturing standardization, workforce development, and raw material supply chains.

These challenges underscore the importance of strategic efforts to strengthen the U.S. energy infrastructure and support sustainable clean energy development.