NAHB Alerts Congressional Leaders about Transformer Shortage

The National Association of Home Builders (NAHB), along with five other building and utility trade groups, recently sent a joint letter to leaders of the House and Senate appropriations committees urging Congress to allocate $1 billion to address the growing supply-chain crisis for electric distribution transformers.

Other groups signing the letter along with NAHB were the American Public Power Association, Associated General Contractors of America, Edison Electric Institute, Leading Builders of America and the National Rural Electric Cooperative Association.

The trade groups informed lawmakers that orders for transformers that previously took two to four months to fill are now taking on average over a year. To address labor and material shortages focused specifically on the production of distribution transformers, Congress is being urged to use its authority under the Defense Production Act to expedite production of depleted stockpiles.

The letter said in part, “Electric utilities continue to have significant problems in procuring basic equipment — particularly distribution transformers — needed to operate the grid, provide reliable electric service, and restore power following severe storms and natural disasters. In housing construction, this is further exacerbating their ability to address the housing affordability crisis facing our nation.”