Transformers are used to reduce or increase the voltage of electricity traveling through a wire. They are a critical component to the operation of every electrical transmission and distribution (“T&D”) system. Transformers are used by:
- electric utilities for the construction and maintenance of their power networks,
- industrial firms to supply factories with electricity and to distribute power to production machinery,
- the renewable energy industry to connect new sources of electricity generation to the power grid,
- the construction industry for the supply of electricity to new buildings and homes, and
- original equipment manufacturers who use custom magnetic transformers as a component part of the products they make.
Growth in our business has historically been driven by expansion project spending in the public utility grid, as well as by investment in commercial and residential construction. In future years, demand for our products should also benefit from:
- the need to replace and upgrade a significant portion of the aging equipment that comprises the North American power grid,
- regulatory initiatives intended to improve system stability, efficiency and reduce emissions,
- new policies promoting power generation by independent producers and from renewable energy sources.