ERMCO, a leading distribution transformer manufacturer, has announced a significant expansion with the opening of its first plant west of the Mississippi River. The new facility, located in Maricopa County, Arizona, will focus on three-phase transformer production, addressing ongoing supply constraints in the sector. The 566,121-square-foot plant in Waddell, approximately 30 miles west of Phoenix, is expected to be operational in 2027, with foundational work beginning this year. This expansion is anticipated to create over 500 jobs in engineering, skilled trades, and operational support roles.
The move comes at a critical time for the energy sector. Utilities nationwide are grappling with transformer supply shortages and extended lead times, driven by aging grid infrastructure, rapid load growth from data centers and electrification, and grid modernization initiatives. ERMCO’s new Arizona location offers proximity to Western U.S. customers, reducing transportation time and costs. The company cited Arizona’s business climate and skilled labor market as key factors in site selection.
“This expansion is about more than building a facility—it’s about building the future,” said Tim Mills, ERMCO president and CEO. “Our goal is simple: power the grid and power progress. This investment ensures ERMCO is ready to meet the challenges of tomorrow.”
The regional benefits of this expansion are significant. Christine Mackay, president and CEO of the Greater Phoenix Economic Council, noted that having ERMCO in Greater Phoenix will help build capacity of this important component to our electrical ecosystem, enhancing the supply chain and addressing power demands for residents and businesses in the coming decades. Stacy Derstine, vice president of External Affairs for Arizona Public Service, echoed these sentiments, stating that increasing manufacturing capacity in the West helps strengthen supply chain resilience.
ERMCO, headquartered in Dyersburg, Tennessee, has been a key player in the transformer manufacturing industry since 1972. The company and its affiliates now employ nearly 3,500 workers across facilities in Tennessee, Georgia, Wisconsin, North Carolina, Texas, Quebec, and Mexico. ERMCO is a wholly owned subsidiary of Arkansas Electric Cooperatives Inc.
This expansion could shape the development of the energy sector in several ways. Firstly, it may set a precedent for other manufacturers to follow, potentially leading to a more decentralized and resilient supply chain. Secondly, the increased production capacity could help alleviate current supply constraints, supporting the ongoing transition to a more electrified and modernized grid. Lastly, the creation of over 500 jobs in Arizona could stimulate local economic growth and attract further investment in the region. However, the true impact of this expansion will depend on how the market evolves and how ERMCO and other manufacturers respond to these changes.