NAHB, Other Trade Groups Urge Congress to Act on Transformer Shortages
This post was updated on Dec. 8.
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.
The letter stated that “throughout 2022, the electric sector and representatives from residential and commercial building sectors have been calling attention to the unprecedented supply-chain challenges both industries have been facing in procuring equipment used to maintain and grow the electric grid.”
Electric utilities continue to have significant problems in procuring distribution transformers needed to provide reliable electric service, and restore power following severe storms and natural disasters.
The trade groups noted that in housing construction, this is further exacerbating the ability of home builders to address the housing affordability crisis facing our nation.
NAHB has taken the lead in sounding the alarm since late last year that construction and electrification projects are being deferred or cancelled due to the inability to procure distribution transformer across all segments of the electric industry.
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.
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.
NAHB Members: Take Action Today
Reach out today to urge your members of Congress to support the implementation of the Defense Production Act to specifically address the supply chain crisis for electric distribution transformers. Follow this link to connect with NAHB’s grassroots tool that will automatically send a letter to your members of Congress on your behalf.
Act now.
Latest from NAHBNow
May 21, 2025
New Resources on the Safe Use of Mobile Elevated Work Platforms (MEWP)Mobile Elevated Work Platforms (MEWPs) are vehicle-mounted machine lifts used to help workers complete tasks more efficiently in an elevated position. They are commonly used across the construction industry because of their ability to reach and maneuver around elevated areas.
May 20, 2025
Podcast: One Big, Beautiful Podcast – NAHB Talks Tax BillOn the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez are joined by AVP of Government Affairs J.P. Delmore to dive into the “big, beautiful” tax bill that’s been introduced.
Latest Economic News
May 21, 2025
Gains for Multifamily Missing Middle over Last YearThe missing middle construction sector includes development of medium-density housing, such as townhouses, duplexes and other small multifamily properties.
May 20, 2025
Single-Family Home Size Trending HigherAn expected impact of the virus crisis was a need for more residential space, as people used homes for more purposes including work. Home size correspondingly increased in 2021 as interest rates reached historic lows. However, as interest rates increased in 2022 and 2023, and housing affordability worsened, the demand for home size has trended lower.
May 20, 2025
Slight Gains for Townhouse ConstructionTownhouse construction expanded more than 2 percent on a year-over-year basis per data from the first quarter of 2025.