Electrical Equipment Manufacturers

The 1,570 Electrical equipment manufacturers in the US produce goods that generate, control and distribute power. The industry manufactures a wide range from products including light fixture components; electric motors, generators, and components; power substation transformers; electrical panels and components for buildings; and electrical controls used in machinery.

Reliance on Construction Spending

Electrical equipment manufacturers’ sales are affected by the health of the construction sector.

Electric Grid Modernization

The need to modernize and expand electric grids is a positive for electrical equipment manufacturers.

Jul 27, 2026 - Power Needs Boost Equipment Demand

• FMI's 2026 Energy and Power Overview forecasts that US power construction spending will rise from $158 billion in 2025 to $255 billion in 2030, supported by data centers, industrial expansion, electrification, aging infrastructure, and stricter reliability requirements. Transmission and distribution projects are expected to represent about half of total spending through 2030, while thermal generation, renewable generation, battery storage, microgrids, and grid-edge systems also expand. These trends should strengthen demand for transformers, switchgear, protective relays, conductors, controls, storage equipment, and other electrical components. However, manufacturers may face supply chain constraints, rising input costs, long procurement timelines, tariffs, and permitting-related project delays. Companies with scalable capacity, dependable aftermarket support, and products that improve grid resilience, bidirectional power flow, monitoring, and automation could gain the most from the multiyear investment cycle.
• The Wall Street Journal reports that US power plant construction costs are rising as AI data centers, industrial growth, equipment shortages, tariffs, permitting delays, and grid-connection backlogs drive electricity demand. Lazard estimates that costs for natural gas, solar, and wind projects have increased more than 10% since last year, while utilities plan $1.4 trillion in capital spending over the next five years. Higher investment costs could eventually raise customer bills, which were already 4% higher in June than a year earlier. Renewable energy and battery storage account for about 90% of projects expected to begin operating this year, but gas turbine backlogs stretch into the 2030s. Regulators are considering special rates for data centers, particularly in the PJM region, where surging demand has strained capacity and increased power costs.
• GE Vernova's gas turbine backlog reached 116 GW in the second quarter, up from 100 GW in the previous quarter, as utilities and data centers accelerated power investments, according to Utility Dive. The company expects combined turbine orders and reservations to reach 125 GW by year-end and is already booking delivery slots for 2031. GE Vernova also reported a 69% increase in its Electrification backlog to $41 billion, supported by strong demand for transformers, switchgear, and grid-stabilizing equipment. Overall orders totaled $176 billion, up from $129 billion a year earlier. Wind equipment orders fell 40% amid weak US demand, tariff uncertainty, and policy challenges, although repowering projects and technology companies' clean-energy needs could support a longer-term recovery.
• The New York Times reports that the 21st Century ROAD to Housing Act is the largest federal housing measure in a generation, but it is unlikely to ease high rents and home prices soon. The law encourages local governments to allow denser housing and faster permitting, streamlines some affordable housing rules, protects new build-to-rent developments from investor restrictions, and removes a costly chassis requirement for manufactured homes. It also directs HUD to study changes that could expand modular construction. These provisions could support the US residential construction market by lowering factory-built housing costs, encouraging the development of new rental communities, and reducing local barriers to development. However, cities and states still control most zoning and land-use rules, while interest rates shape mortgage affordability. With little new funding and housing projects requiring years to complete, the law's effects are expected to emerge gradually.

Industry size & Structure

A typical electrical equipment manufacturer employs 97 workers and generates about $31.9 million annually.

• The electrical equipment manufacturing industry consists of about 1,570 companies which employ about 153,000 workers and generate about $50 billion annually.
• Most companies are small, independent operators - about 84% have a single location.
• The industry is concentrated: the 20 largest firms represent 50% of industry revenue.
• Customer industries include electric power generators and distributors, lighting equipment manufacturers, industrial machinery manufacturers, motor manufacturers and repair services, electrical component wholesalers and retailers, and electrical contractors.
• Large companies include General Electric, Honeywell, Schneider Electric, Emerson, and Eaton.