NASHVILLE, Tenn.—A huge boost in government spending on the nation’s infrastructure is increasing the already overwhelming demand for transformers and other crucial equipment needed by electric cooperatives, experts told co-op leaders at PowerXchange.
The supply chain issues spurred by the COVID-19 pandemic caused production and deliveries to stop or slow down significantly for about 18 months, but challenges have continued in part because demand for transformers, electrical conductor, steel wire and other material is at an all-time high, said Tim Mills, president and CEO of ERMCO, a manufacturing enterprise owned and operated by Arkansas co-ops.
“There’s a massive gap between supply and demand,” Mills said. “What changed? Did supply drop or has there been a marked change in demand? The latter, I think, is what’s happening now.” https://www.cooperative.com/news/Pages/PowerXchange-Panel-Huge-Infrastructure-Investment-Drives-Up-Transformer-Demand.aspx