According to an a16z analysis, US electrical equipment manufacturing capacity fell 9% since 2019, as of mid-2026, while prices rose 69%. Over the same period, communications equipment grew 110%, semiconductors rose 77% and computers increased 16%. Electrical equipment plants are running at 87% utilization, their highest level since 2008, yet output fell 7%, indicating a shrinking production base. Imports of transformers and switchgear surged approximately 80% above 2019 levels, potentially worsening shortages and raising costs for sectors dependent on power infrastructure, particularly those linked to AI.
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