Power management company, Eaton, announced recently that it would invest $340 million to increase US production of its three-phase transformers in response to the ongoing transformer shortage. Eaton plans to convert an existing facility in Jonesville, South Carolina, into a manufacturing site for the transformers, while it will continue to manufacture three-phase transformers at two facilities in Waukesha, Wisconsin, and single-phase, pole-mount and pad-mount transformers in Nacogdoches, Texas.
The Jonesville project is supported by local, state and federal economic development incentives, as per Eaten, which is also working closely with South Carolina regional schools to support hiring and industry training.
A September 2024 report from the National Infrastructure Advisory Council found that over the last few years, the lead time for utilities to procure new transformers has more than doubled, to 120 weeks. In addition, electricity demand from data centres is expected to exacerbate delays.
Eaton aims to help address the ongoing transformer shortage and meet record demand from utility, large commercial, industrial, and data centre customers. Its latest investment contributes to Eaton’s investment of more than USD1 billion in North American manufacturing since 2023.
Eaton is also increasing supplies of power solutions, including transformers and voltage regulators; as well as electrical assemblies: switchgear, switchboards and circuit breakers; and solutions supporting electric grid infrastructure projects. Production and hiring are expected to begin in 2027 at the Eaton production facility in Jonesville, South Carolina.