Photo courtesy of JLL Phoenix
Transformer manufacturer expands west to meet rising grid demand and strengthen U.S. energy infrastructure
MARICOPA COUNTY, Ariz. (Feb. 12, 2026) – Electric Research and Manufacturing Cooperative, Inc. (ERMCO), one of North America’s leading manufacturers of distribution transformers, announced plans to open a new manufacturing facility in Maricopa County, Arizona. The project is expected to generate more than 500 new jobs and significantly expand domestic transformer production capacity.
The new facility will be located at 15784 W. Hatcher Road in Waddell, approximately 30 miles west of Phoenix. The 566,121-square-foot plant, including 4,070 square feet of office space, will focus on expanding ERMCO’s three-phase transformer production while allowing the company to evaluate additional manufacturing opportunities. Construction groundwork is scheduled to begin in 2026, with operations targeted for 2027.
The investment marks ERMCO’s first manufacturing expansion west of the Mississippi River and reflects the company’s long-term strategy to better serve utilities and customers in the western United States.
Arizona leaders say the project aligns with the state’s focus on energy reliability and advanced manufacturing growth.
“ERMCO’s new manufacturing facility will help strengthen our energy grid and create hundreds of new jobs for Arizonans,” said Governor Katie Hobbs. “Arizona’s commitment to reliable energy infrastructure continues to drive economic growth across our state.”
Meeting Critical Grid Demand
Demand for distribution transformers is rising nationwide as utilities modernize infrastructure, replace aging equipment and respond to population growth and industrial expansion. Increased electrification, housing development and energy-efficiency initiatives are also contributing to higher demand for reliable power distribution equipment.
ERMCO’s expansion is designed to address these pressures by increasing three-phase production capacity and improving delivery times to western utilities.
“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 to power the grid and power progress. This investment ensures we are prepared to meet tomorrow’s energy challenges.”
Strategic Location Advantages
Company officials cited Arizona’s business climate, workforce availability and proximity to western customer markets as key factors in the location decision. The new site will help reduce shipping distances and transportation costs while strengthening partnerships with local workforce and training programs.
U.S. Senators Mark Kelly and Ruben Gallego both highlighted the project’s role in creating skilled trade and engineering jobs while reinforcing domestic energy infrastructure.
Regional Economic Impact
State and regional development groups view the project as a major win for Arizona’s energy and advanced manufacturing sectors. The facility will support supply chain resilience and expand the region’s role in critical power infrastructure production.
Sandra Watson, President and CEO of the Arizona Commerce Authority, said the project reinforces Arizona’s leadership in energy and manufacturing.
Greater Phoenix Economic Council President and CEO Christine Mackay noted that transformer production is a foundational component of economic development, directly supporting business growth and grid reliability nationwide.
Local officials also emphasized Maricopa County’s workforce pipeline and pro-business environment as key competitive advantages.
About ERMCO
Founded in 1972 in Dyersburg, Tennessee, ERMCO has grown into a leading manufacturer of liquid-filled distribution transformers serving utility, commercial and industrial markets. The company operates multiple facilities across North America and employs nearly 3,500 people. ERMCO is a wholly owned subsidiary of Arkansas Electric Cooperatives, Inc.
