Electrical Equipment Distributors NAICS 423610

Sep 26, 2025 - US Pulls Back on Energy Transition

• With federal support for renewables waning, distributors may face canceled transmission projects, delayed clean-tech installations, and shrinking incentives, prompting a retreat from the green energy transition, according to The Wall Street Journal. The Trump administration’s focus on fossil fuels has destabilized investment in electricity infrastructure and hindered domestic manufacturing of electrical equipment that supports green energy expansion. The tax and spending bill passed in July 2025 winds down an estimated $400 billion in clean energy subsidies. For the first time on record, in the second quarter of 2025, more green manufacturing projects were cancelled than were announced. Meanwhile, China’s expansion in solar, wind, and battery production, backed by state subsidies, has positioned its firms as dominant global suppliers.
• The 2025 construction outlook signals cautious optimism for the nonresidential and infrastructure segments amid selective growth and macroeconomic headwinds, according to construction software and data firm ConstructConnect. Nonresidential building starts are projected to rise 4.1% over 2024, driven by resilient megaprojects in manufacturing (+38.1%), data centers (+17.3%), and transportation terminals (+ 153.3%), though this momentum may fade by 2026 as planning slows. Institutional construction faces a 6.9% decline, with sharp contractions in prisons and healthcare facilities, while civil construction continues its upward trajectory, led by bridge (+13.5%) and airport runway (+14.7%) investments. Electrical equipment suppliers may benefit from large-scale projects, especially in manufacturing, but must navigate tariffs and shifting policy priorities, particularly in power infrastructure.

• In late August, the US government – through the Bureau of Ocean Energy Management (BOEM) - ordered Danish firm Orsted to cease work on the Revolution Wind project off the coast of Maryland, according to The Wall Street Journal. The wind project began construction last year and was 80% complete at the time of the stoppage, with all foundations and 45 of 65 turbines installed. The BOEM said it needed more time to complete a review ordered by the Trump administration. Trump opposes wind power and suspended all new federal leases for wind projects soon after his inauguration. In early September, Orsted filed a lawsuit to challenge the stoppage. In mid-April 2025, the Trump administration made a similar move against Norway-based Equinor’s Empire Wind project off the New York Coast, but the order was lifted a month later.
• Renewable energy sources accounted for 91% of the 15 gigawatts (GW) of new electricity generation capacity that came online in the first five months of 2025, according to the Federal Energy Regulatory Commission (FERC) and reporting by Utility Dive. At 11.5 GW, solar held the largest share of new capacity additions, followed by wind (2.3 GW) and gas (1.3 GW). However, gas still accounts for the largest share of total electricity generation with 43%, followed by coal (15%), wind (11.8%), solar (11%), and nuclear (7.7%). Despite the Trump administration's favoring oil and gas and rescinding tax credits for renewables development and production, rising demand for electricity is expected to boost renewables. According to FERC, among 133 GW of “high probability” additions projected to be operational by 2028, 84% will come from solar and wind, and 15% from gas.