The distribution transformer manufacturer’s first plant west of the Mississippi River will add three-phase production capacity to address ongoing supply constraints.
Distribution transformer manufacturer ERMCO announced Jan. 21 it will open a new manufacturing facility in Maricopa County, Arizona—the company’s first expansion west of the Mississippi River.
The 566,121-square-foot plant in Waddell, approximately 30 miles west of Phoenix, will focus on three-phase transformer production and is expected to be operational in 2027. Foundational work will begin this year. The facility is anticipated to create more than 500 jobs in engineering, skilled trades, and operational support roles.
“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 move comes as utilities nationwide grapple with transformer supply shortages and extended lead times. Aging grid infrastructure, rapid load growth from data centers and electrification, and grid modernization initiatives have increased demand for distribution transformers while manufacturers struggle to keep pace.
ERMCO said the 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 factors in site selection.
“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,” said Christine Mackay, president and CEO of the Greater Phoenix Economic Council.
Stacy Derstine, vice president of External Affairs for Arizona Public Service, noted the regional benefits. “Increasing manufacturing capacity in the West helps strengthen supply chain resilience,” Derstine said.
ERMCO, headquartered in Dyersburg, Tennessee, manufactured its first transformer in 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.
