Utilities across America face unprecedented forces reshaping how they source critical equipment. Cyber threats are growing. Tariff policies are shifting. And the best way forward is clear: building a resilient, domestic supply chain that delivers reliability, security, and long-term cost stability.
Cyberattacks on U.S. utilities surged by nearly 70% in 2024. These attacks exploit vulnerabilities in operational technology, including SCADA systems, smart grid infrastructure, and substation automation. With overseas sourcing, utilities have limited visibility into potential security risks embedded in their supply chains.
Simultaneously, tariffs are reshaping procurement strategies. In the US, only around 20% of transformer demand can be met by domestic supply, according to a Wood Mackenzie report from May 2024. Meanwhile, China accounted for most imported low-voltage transformers, and Canada provided a significant percentage of high-voltage switchgear. With new trade restrictions, utilities face rising costs and longer lead times for essential components.
The urgency is underscored by the American Society of Civil Engineers’ recent downgrade of U.S. energy infrastructure to a D+ in their 2025 Infrastructure Report Card, citing aging grid systems and transformer shortages among key concerns.
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