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Supply chain causing material backups are creating significant transformer shortages

March 9, 2023

As the world continues to face supply chain issues, the electrical industry is becoming more and more impacted by the day. The multi-year supply chain deficit is now disrupting the distribution of transformers, making it difficult to find replacements when needed in emergencies. 

As known throughout the industry, transformers vary in size and kVA (amps), depending on the customer’s needs. Many users keep spare transformers in stock; however, the supply chain issue has created a shortage most were unprepared for – a shortage of available assets. 

This shortage has changed the way we need to manage our assets within our industry. We now need to shift our methods to a maintenance focus to achieve a longer lifespan for our assets. Therefore, routine testing and maintenance are more critical now than ever before. 

In addition to shortages, the current cost of the average pad-mounted transformer has risen 400% above per-unit pricing compared to 2020. At the same time, the station type transformer is 900% above average compared to the same year. Similar increases have affected large power transformers as well.

Users are not only facing shortages and price increases, but they’re also seeing exponentially longer lead times. What once took 6-12 weeks to fulfill an order in 2020 is now taking 52-86 weeks, depending on the type of transformers ordered. In addition, many orders are currently being slated for a mid-2023 arrival, whereas others are facing multiple postponed delivery dates or a ‘yet to be determined’ arrival. 

What does this mean for the User?

The overall ripple effect of the supply chain issues has yet to be determined. For now, transformer users can continue to experience delays in delivering transformers and an increased cost to receive them until the supply chain can sort itself out. 

Voltyx can assist with creating a maintenance plan to help mitigate costs and outages associated with transformer shortages. Our team of experts is on hand 24/7 to help tailor a program specific to your organizational needs. If you or your company are experiencing an issue with your equipment, please contact us at any time. 

For more information or assistance in locating a transformer, or help extending the life of your transformers, please feel free to reach out to info@voltyx.com