Overview

• Since 2019, US power transformer demand has risen by about 119% and distribution transformer demand by roughly 41% driven by electrification and renewable projects
• Wood Mackenzie projects a 30% supply deficit for power transformers and a 10% shortfall for distribution units in 2025
• Imports are expected to account for approximately 80% of US power transformer supply and 50% of distribution transformer supply next year
• Tariffs under the One Big Beautiful Bill, including a 50% levy on copper, will take effect in August and are forecast to push unit costs higher
• Manufacturers have announced $1.8 billion in North American capacity expansions since 2023 but analysts say further standardization, workforce development and raw‐material initiatives are needed to prevent prolonged shortages