# The electric transformer shortage

- Show: [Catalyst](https://hardwarepodcasts.com/podcast/catalyst)
- Published: 2024-02-22
- Length: 34m
- Page: https://hardwarepodcasts.com/podcast/catalyst/2024-02-22-the-electric-transformer-shortage

## Summary

Tim Mills, CEO of transformer manufacturer ERMCO, explains the persistent shortage of distribution transformers, where lead times have jumped from 12 weeks to over two years and prices have risen over 60%. He attributes the crisis to a confluence of demand drivers including EV chargers, renewable energy integration, federal infrastructure spending, and storm-related replacements, which overwhelmed manufacturers who remained cautious due to the housing crash of the 2000s. Mills details the supply-side bottlenecks, specifically the tight labor market in rural manufacturing hubs and the near-monopoly on grain-oriented electrical steel by Cleveland Cliffs. The episode also covers the regulatory uncertainty surrounding new Department of Energy efficiency standards that could force a shift to amorphous steel, and the potential of solid-state transformers for future grid management.

## Chapters

- [0:07](https://hardwarepodcasts.com/podcast/catalyst/2024-02-22-the-electric-transformer-shortage#t=7) Introduction: The Transformer Shortage Crisis
- [4:04](https://hardwarepodcasts.com/podcast/catalyst/2024-02-22-the-electric-transformer-shortage#t=244) Market Breakdown and Lead Time Escalation
- [8:34](https://hardwarepodcasts.com/podcast/catalyst/2024-02-22-the-electric-transformer-shortage#t=514) Historical Context: Housing Bubbles and Capacity Caution
- [12:58](https://hardwarepodcasts.com/podcast/catalyst/2024-02-22-the-electric-transformer-shortage#t=778) Demand Drivers: EVs, Renewables, and Storms
- [16:37](https://hardwarepodcasts.com/podcast/catalyst/2024-02-22-the-electric-transformer-shortage#t=997) Supply Constraints: Labor, Capital, and Steel Monopolies
- [23:17](https://hardwarepodcasts.com/podcast/catalyst/2024-02-22-the-electric-transformer-shortage#t=1397) Regulatory Uncertainty: DOE Standards and Amorphous Steel
- [27:25](https://hardwarepodcasts.com/podcast/catalyst/2024-02-22-the-electric-transformer-shortage#t=1645) Pricing Trends and Future Capacity Expansion
- [31:34](https://hardwarepodcasts.com/podcast/catalyst/2024-02-22-the-electric-transformer-shortage#t=1894) Future Technology: Solid-State Transformers

## Topics

- [Scaling production](https://hardwarepodcasts.com/topic/scaling-production)
- [Sourcing & supply chain](https://hardwarepodcasts.com/topic/sourcing-and-supply-chain)
- [Policy, trade & tariffs](https://hardwarepodcasts.com/topic/policy-trade-and-tariffs)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Energy & climate tech](https://hardwarepodcasts.com/topic/energy-and-climate-tech)

## Most relevant to

companies scaling up

## Mentioned

- ERMCO (company)
- WoodMackenzie (company)
- Cleveland Cliffs (company)
- Gridbridge (company)
- Energy Hub (company)
- Amorphous steel (material)
- Grain-oriented steel (material)
- Solid-state transformers (product)

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- [Managing Energy At The Edge: Navigating The Modern Grid With Itron](https://hardwarepodcasts.com/podcast/over-the-air/2024-09-05-managing-energy-at-the-edge-navigating-the-modern-grid-with-itron) (Over the Air)
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## Citing this page

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