We’ve written about supply chain issues in the past and, unfortunately, we’re still feeling the impact of them now in the home building industry. Currently, a shortage of transformers has made it so that contractors are building homes without electricity, leaving them to come up with creative ways to manage the delays.
Ongoing supply chain issues following the COVID-19 pandemic have led to high global demand for specialized steel and wiring, which has resulted in an ongoing, national shortage of electrical transformers.
As of February this year, it took an average of more than 16 months to produce and deploy new transformers, causing significant homebuilding delays. As a result, contractors are struggling to build homes without electricity, in some cases resorting to bringing generators to job sites in an effort to continue making progress amid the delays.
If a lot or land has never had power on it (no existing or previous home), we will need a transformer. If the home is smaller and it is demolished, the new home may need a larger service and there could be an issue getting a replacement transformer. We are working with Duke Progress to address each new home that has this issue so it can be resolved prior to the completion of the home. Duke has been diligently working on solutions.
A recent proposal from the Department of Energy (DOE) to increase energy conservation standards for the production of electrical transformers has many builders worried that the current supply shortage will get worse before it gets better.
The concern is that the new proposal would only marginally increase efficiency while leading to more significant delays in the home-building process.
Earlier this year, the National Association of Home Builders (NAHB) along with six other organizations sent a joint letter to Energy Secretary, Jennifer Granholm, with concerns about the proposed bill. Then, in recent weeks, 47 bipartisan senators sent another letter to Granholm, urging the DOE not to move forward on the bill.
The hope is that the DOE will take these concerns to heart and elect not to move forward with the proposed bill. In the meantime, NAHB will continue to work with lawmakers to seek congressional funding to help boost the production of distribution transformers to ease home construction delays.
Our team will continue to stay updated on the proposed bill and efforts to lessen the impact of these supply chain issues. If we’re currently working on your home, we’ll stay in communication with you about delays or changes in the timeline of your project. If you have any questions, please don’t hesitate to reach out by calling 919-460-8550 or contacting us online
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