US Electrical Equipment Production Declines Since 2019

Domestic output has fallen 9% since 2019 while utilization rates in existing manufacturing plants reached a 16-year high.

Updated on Oct. 24, 2026 in Manufacturing

Isometric editorial illustration of a heavy industrial electrical transformer core, representing domestic manufacturing capacity in the United States. — US electrical equipment manufacturing has fallen 9% since 2019, even as demand and prices for switchgear and transformers continue to climb. AI Illustration. Upload story photo >

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United States electrical equipment manufacturing production has declined 9% since 2019. Meanwhile, prices for this equipment have risen 69% over the same period, forcing domestic buyers to increase imports of transformers and switchgear by 80%.

Why it matters

The sector faces challenges as escalating costs and supply shortages may slow broader economic growth. These pressures also threaten to push price inflation further across multiple technology-related sectors.

Electrical equipment plants now operate at 87% utilization, the highest level recorded since 2008. Despite this 13% increase in utilization, output from existing plants has fallen 7%.

The details

While electrical equipment production dropped 9%, other technology sectors saw significant gains, including 110% growth in communications equipment and 77% in semiconductor production. Transformer and switchgear prices have nearly doubled, reflecting the strained supply chain dynamics.

2008 marked the previous peak in electrical equipment plant utilization.
2019 serves as the baseline year for current production and price comparisons.
Mid-2026 was the assessment point for the manufacturing capacity decline.

Market Landscape

This decline in production marks a significant departure from the robust growth seen in semiconductor and communications equipment sectors. Domestic manufacturers are currently struggling to maintain output levels while competitors abroad capture an increasing share of the transformer and switchgear market.

Consumers and businesses may face higher costs for technology and infrastructure projects due to the sharp rise in equipment prices. Ongoing supply shortages could also lead to longer lead times for essential electrical components required for new construction or system upgrades.

The takeaway

The widening gap between high plant utilization and lower output suggests that existing infrastructure is struggling to keep pace with demand. Buyers should prepare for persistent price inflation and prioritize long-term supply planning to mitigate risks associated with import reliance.