The supply chain disruptions started in 2020, following the start of the COVID pandemic. Among the factors: shipping backlogs, numerous factory closures, labor issues and equipment shortages. 

Supply chain issues with transformers, in part, stems from transformers’ need for grain-oriented electrical steel, a soft material made of iron and silicon with special magnetic properties that helps prevent energy loss. That material, like other steel-based products, has been in short supply for more than a year. Only one U.S. company produces it, and overseas companies face shipping challenges and increased worldwide demand. 

The steel industry more broadly has been disrupted in recent years, after the U.S. Government imposed tariffs on steel imports in 2018. While some tariffs for European and Japanese products have been eased since then, taxes on imports from China still remain.

A number of manufacturers also have indicated they struggle to find enough workers. (Route-Fifty.com)

JEA leadership is engaging with statewide and national trade associations addressing these issues, such as Florida Municipal Electric Association and the American Public Power Association.

Yes, these supply chain challenges are impacting utilities throughout Florida and the United States.

Both. Due to the pandemic, many factories in Asia, for example, suspended operations, which disrupted the global supplies of goods from apparel to cars to electronics. It’s also taking longer to unload containers from ships, which further resulted in disruption along the supply chain as COVID-19 forced workers into isolation. Pre-pandemic, it was normal for ships to sail back to Asia from North America nearly full of empty containers for reuse. (South China Morning Post)

One answer may involve a greater investment in the use of remanufactured transformers. With new factory transformer lead time out 80+ weeks, in-stock remanufactured transformers can be made available in as little as one to three weeks. Against the inflated cost of new factory-built units, remanufactured transformers offer a cost reduction between 10 percent and 40 percent. Purchasing a unit with a proven track record in the field provides an additional level of assurance for future reliability. In that same vein, the remanufacturing process includes identifying any previous design flaws and correcting and improving any defects for a longer service life. (Transformer-Technology.com)

JEA also supports the invocation of Title III of the Defense Production Act (DPA) to spur private-industry support for manufacturing of these supplies as essential domestic industrial resources.