In the article, Azhar Fayyaz, Analyst at PTR Inc., explains the current state of the distribution transformer market in the United States, highlighting it as the leading market in North America and one of the largest globally. The recent supply chain bottlenecks are attributed to the surge in renewable energy deployment and the need to replace aging electrical infrastructure. Despite the U.S. market’s inability to meet growing demand due to these constraints, transformer OEMs are responding by expanding and establishing new manufacturing facilities within the country.  

The U.S. has over 60 million distribution transformers installed, with nearly one million units expected to be added in 2024. The market, valued at over $5 billion in 2023, has seen lead times for transformers increase dramatically—from 12-14 weeks to 60-70 weeks, or even up to two years, due to rising demand post-COVID-19. OEMs are now investing significantly in production expansions, with companies like Maddox Transformer and Eaton enhancing their capabilities. 

Looking ahead, Fayyaz indicates that transformer prices in the U.S. have risen substantially, leading many manufacturers to conclude that the demand for distribution transformers is sustainable. This change reflects a shift in the industry’s perspective, as OEMs previously doubted the longevity of the demand surge. 

Follow this link to learn more: Wired for Growth: Unveiling Opportunities Amid Challenges in the US

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