Having issues getting your transformers and electrical equipment this year? You’re not alone. The global supply chain for electronic components, including transformers, is facing unprecedented challenges. A combination of factors, such as tariffs, increased demand, manufacturing disruptions, and logistical bottlenecks, has led to significant transformer shortages and a low supply of electronic components. These shortages impact everything from consumer electronics to industrial machinery, highlighting the critical need for strategic planning to navigate this complex and evolving situation.
Why Is There An Electrical Transformer Shortage In Canada?
There is an electrical supply shortage due to slow downs with the electric material and steel supply chain. These slowdowns have resulted in longer wait times, and therefore, what took 15-30 weeks to build years ago takes double the time due to material shortages and supply chain issues; semiconductors, processors, logistics, and specialty metals continue to cause industry delays.
Tariffs imposed by the Trump administration have further exacerbated existing supply chain challenges, resulting in extended lead times and increased project costs for utilities and other sectors. Industry experts warn that these developments could delay critical infrastructure projects.
How Will This Shortage Affect Your Costs?
Since 2020, transformer prices have surged by approximately 70% to 100%, driven by increased costs of essential materials like electrical steel and copper.
In February 2025, the U.S. administration imposed a 25% tariff on steel and aluminum imports, affecting critical components used in transformer manufacturing. This policy has led to further price hikes and supply constraints, particularly impacting states like Texas that rely heavily on imported transformers.
What Will Solve the Transformer Shortages?
Solving the transformer shortage requires a multifaceted approach involving increased local production capacity, supply chain optimization, and technological innovation. Firstly, expanding manufacturing capabilities and establishing new production facilities can help meet the rising demand. Secondly, improving supply chain logistics by diversifying sources of raw materials and components can reduce dependency on single suppliers and mitigate risks. Finally, investing in research and development to create more efficient and easily producible transformer designs can streamline production processes and enhance availability. Collaboration between governments, industries, and technological institutions will be crucial in implementing these solutions effectively.
How Can VCM Solutions Help?
VCM is still able to offer new transformer builds in as little as 2-4 weeks for common distribution transformers, and <20 weeks on oil-type transformers. If our new builds still aren’t quick enough to meet your deadlines our team of experienced electrical professionals can support you with surplus/old-stock equipment with warranty coverage for up to 5 years on select products. VCM’s fleet of ready-to-rock & roll power products is ready to ship out to you at a moment’s notice, day or night, rain or shine.
For more information or to speak to one of our experts contact VCM Solutions today!