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Supply Chain Challenges Continue

We at Sangre de Cristo Electric Association (SDCEA) do our best to provide excellent service day-in and day-out, including timely installation of quality equipment to support our members.

Since the start of the COVID-19 pandemic in 2020, SDCEA has been preparing for supply chain issues by ordering equipment in advance, working closely with our long-term supply partners, finding alternative manufacturers and closely tracking equipment delivery schedules.

Due to the current global supply chain issues, certain parts and pieces of equipment, including transformers, have unusually long manufacturing and delivery lead times. SDCEA buys American-made products when practical, but even those products have been affected by production and shipping delays. Unfortunately, we are beginning to feel the effects of the global supply chain issues and our transformer inventory is critically low. Transformers are required for all electric services. The shortage of transformers may delay new construction projects.

Thank you for your support as we continue to strategize and work hard to maximize the equipment inventory available. We are dedicated to serving our members throughout this latest challenge.

Trouble With Transformers: Months of constructed operations at electrical transformer factories caused by the COVID-19 pandemic have strangled inventory of these essential grid devices. Add to that spiking demand from new housing developments, scarcity of raw and finished materials, bottlenecks at shipping ports and a shortage of freight drivers, and it's a recipe for a long-term supply crunch. Here are some of the key drivers of the current national transformer shortage. Labor Shortages: A tight labor market is causing difficulties in hiring and retaining factory workers and technicians. Electrical Steel: A global shortage of electrical steel, a key component in transformers, is slowing production. Driver Shortages: A shortage of truck drivers and warehouse workers is impeding deliveries of finished products. High Demand: Developments in growing areas of the country and summer storm prep are spiking the need for new transformers. Shipping Bottlenecks: Imports of components made overseas are being delayed by labor shortages at U.S. shipping ports. Electric Vehicles: Much of the world's tight supply of electrical steel is being absorbed by the booming EV market.