According to analysis from a16z, US production of electrical equipment has declined by 9% since 2019. During the same period, manufacturing capacity for this equipment also fell by 9% as of mid-2026.
Prices for electrical equipment have surged by 69% since 2019, marking the highest increase among tracked manufacturing categories. Specifically, the prices for transformers and switchgear have nearly doubled.
Despite a 7% drop in output, electrical equipment plants are operating at 87% utilization, the highest level recorded since 2008. This indicates that plants are working harder while producing less.
To compensate for domestic shortages, imports of transformers and switchgear have increased by approximately 80% compared to 2019 levels. Meanwhile, other sectors like semiconductors saw production growth of 77%.
