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USA, Arizona: Arkansas-owned Electric Research & Manufacturing Cooperative (ERMCO) says it is working to meet rising demand for power transformers across the United States.
ERMCO is expanding production capacity, including a new 52,600 m2 (566,000-sq-ft) facility in Arizona, which is expected to double its three-phase output. The plant is planned to open early next year and will employ up to 600 workers.
CEO Tim Mills describes the company as a producer of single-phase distribution transformers, which are commonly used on poles or ground pads to supply power to homes, offices and small businesses. ERMCO also manufactures three-phase transformers for higher-demand users such as factories, industrial sites and data centres.
Mills said the company holds a strong position in single-phase products, while the three-phase market is more competitive, mainly shared with Howard Industries and Eaton Corp.
Demand for transformers has increased sharply in recent years, driven by data centre growth, manufacturing reshoring and grid upgrades. This has led to supply shortages and longer delivery times across the industry.
The US transformer market is valued at nearly $3.8 B and is expected to rise to $5.6 B by 2031. Demand has grown significantly since 2019, contributing to price increases and supply constraints.
The company already operates multiple facilities in the US, Canada and Mexico and says it is gradually catching up with demand, with lead times now stabilising compared to recent years of shortages.
Mills emphasised that ERMCO’s focus is on domestic manufacturing to support grid reliability and reduce supply chain uncertainty for utilities.
