Transformer Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture power, distribution, and specialty transformers. Major companies include ABB (Switzerland), General Electric (US), Mitsubishi Electric (Japan), Schneider Electric (France), Siemens (Germany), and TBEA (China).

COMPETITIVE LANDSCAPE

Demand is driven by construction spending and industrial production. The profitability of individual companies depends on efficient manufacturing and economies of scale in purchasing. Large companies compete by offering a variety of transformer products to utilities and industrial customers. Small companies can compete by offering innovative, niche products to industrial and consumer product customers. The US industry is highly concentrated: the 50 largest companies account for nearly 90% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include power and distribution transformers, accounting for about 80% of the industry revenue. Other products include specialty transformers (about 10%), and indoor and outdoor instrument transformers (less than 5%).