The transformer shortage: why used electrical gear is in high demand
What is happening. New transformers have become some of the hardest equipment in the world to buy. Lead times for generator step-up transformers passed 160 weeks — over three years — in early 2026, per Wood Mackenzie, and analysts at PwC put high-capacity units at up to four years. High-voltage circuit breakers are at 125 weeks. Prices for this equipment are up roughly 80% over five years, with another 4–10% expected over the next year. Utilities have responded by buying equipment five years before they need it, refurbishing old units, and asking customers to pre-pay for long-lead gear.
Why it matters beyond transformers. The shortage is not just transformers — switchgear, breakers, and cable are all tightening, driven by the same force: data centers and electrification are consuming factory capacity faster than it can be built. Manufacturers have committed nearly $2 billion to new North American capacity since 2023, but most of it does not come online until 2027 or 2028.
What it means for sellers. The secondary market is absorbing the overflow: one long-running equipment marketplace reported over 5,000 transformer inquiries in a single year, with buyers paying real premiums for used and rebuilt units to avoid project delays. If you have transformers, switchgear, or breakers sitting idle — spares, decommissioned units, pulled-on-upgrade gear — used and surplus units are commanding real premiums right now. Sell your transformers · sell your electrical surplus.