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Two new data centers in Silicon Valley have been built but cant begin processing information: The equipment that would supply them with electricity isnt available. Its just one example of a crisis facing the U.S. power grid that cant be solved simply by building more power lines, approving new power generation, or changing out grid software. The equipment needed to keep the grid runningtransformers that regulate voltage, circuit breakers that protect against faults, high-voltage cables that carry power across regions, and steel poles that hold the network togetheris hard to make, and materials are limited. Supply-chain bottlenecks are taking years to clear, delaying projects, inflating costs, and threatening reliability. Meanwhile, U.S. electricity demand is surging from several sourceselectrification of home and business appliances and equipment, increased domestic manufacturing, and growth in AI data centers. Without the right equipment, these efforts may take years longer and cost vast sums more than planners expect. Not enough transformers to replace aging units Transformers are key to the electricity grid: They regulate voltage as power travels across the wires, increasing voltage for more efficient long-distance transmission, and decreasing it for medium-distance travel and again for delivery to buildings. The National Renewable Energy Laboratory estimates that the U.S. has about 60 million to 80 million high-voltage distribution transformers in service. More than half of them are 33-plus years oldapproaching or exceeding their expected lifespans. Replacing them has become costly and time-consuming, with utilities reporting that transformers cost four to six times what they cost before 2022, in addition to the multiyear wait times. To meet rising electricity demand, the country will need many more of themperhaps twice as many as already exist. The North American Electric Reliability Corp. says the lead time, the wait between placing an order and the product being delivered, hit roughly 120 weeks (more than two years) in 2024, with large power transformers taking as long as 210 weeks (up to four years). Even smaller transformers used to reduce voltage for distribution to homes and businesses are back-ordered as much as two years. Those delays have slowed both maintenance and new construction across much of the grid. Transformer production depends heavily on a handful of materials and suppliers. The cores of most U.S transformers use grain-oriented electrical steel, a special type of steel with particular magnetic properties, which is made domestically only by Cleveland-Cliffs at plants in Pennsylvania and Ohio. Imports have long filled the gap: Roughly 80% of large transformers have historically been imported from Mexico, China, and Thailand. But global demand has also surged, tightening access to steel, as well as copper, a soft metal that conducts electricity well and is crucial in wiring. In partial recognition of these shortages, in April 2024, the U.S. Department of Energy delayed the enforcement of new energy-efficiency rules for transformers, to avoid making the situation worse. Further slowing progress, these items cannot be mass-produced. They must be designed, tested, and certified individually. Even when units are built, getting them to where they are needed can be a feat. Large power transformers often weigh between 100 tons and 400 tons and require specialized transportsometimes needing one of only about 10 suitable super-heavy-load railcars in the country. Those logistics alone can add months to a replacement project, according to the Department of Energy. Enormous railcar like this one in Germany are often needed to transport high-voltage transformers from where theyre manufactured to where theyre used. [Photo: Raimond Spekking via Wikimedia Commons, CC BY-SA 4.0] Other key equipment Transformers are not the only grid machinery facing delays. A Duke University Nicholas Institute study, citing data from research and consulting firm Wood Mackenzie, shows that high-voltage circuit-breaker lead times reached about 151 weeks (nearly three years) by late 2023, roughly double pre-pandemic norms. Facing similar delays are a range of equipment types, such as transmission cables that can handle high voltages, switchgeara technical category that includes switches, circuit breakers, and fusesand insulators to keep electricity from going where it would be dangerous. For transmission projects, equipment delays can derail timelines. High-voltage direct-current cables now take more than 24 months to procure, and offshore wind projects are particularly strained: Orders for undersea cables can take more than a decade to fill. And fewer than 50 cable-laying vessels operate worldwide, limiting how quickly manufacturers can install them, even once they are manufactured. Supply-chain strains are hitting even the workhorse of the power grid: natural gas turbines. Manufacturers, including Siemens Energy and GE Vernova, have multiyear backlogs as new data centers, industrial electrification, and peaking-capacity projects flood the order books. Siemens recently reported a record $158 billion backlog, with some turbine frames sold out for as long as seven years. Alternate approaches As a result of these delays, utility companies are finding other ways to meet demand, such as battery storage, actively managing electricity demand, upgrading existing equipment to produce more power, or even reviving decommissioned generation sites. Some utilities are stockpiling materials for their own use or to sell to other companies, which can shrink delays from years to weeks. There have been various other efforts, too. In addition to delaying transformer efficiency requirements, the Biden administration awarded Cleveland-Cliffs $500 million to upgrade its electrical-steel plantsbut key elements of that grant were canceled by the Trump administration. Utilities and industry groups are exploring standardized designs and modular substations to cut lead timesbut acknowledge that those are medium-term fixes, not quick solutions. Large government incentives, including grants, loans, and guaranteed-purchase agreements, could help expand domestic production of these materials and supplies. But for now, the numbers remain stark: roughly 120 weeks for transformers, up to four years for large units, nearly three years for breakers, and more than two years for high-voltage cable manufacturing. Until the underlying supply-chain choke pointssteel, copper, insulation materials, and heavy transportexpand meaningfully, utilities are managing reliability not through construction but through choreography. Morgan Bazilian is a professor of public policy and director at the Payne Institute, Colorado School of Mines. Kyri Baker is an associate professor of civil, environmental, and architectural engineering at the University of Colorado Boulder. This article is republished from The Conversation under a Creative Commons license. Read the original article.
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E-Commerce
Whats one thing every leader can do to make sure employees are happy at work and engaged with their jobs? Make sure they can trust in you, your organization, and one another. Thats the finding in a 2024 meta-analysis of studies with more than 1 million participants. When leaders seek to improve employee well-being, they typically think about things like remote work, flexible schedules, and wellness offerings such as gym memberships. But trust may be the most valuable perk of all. A 2024 meta-analysis by an international research team led by Minxiang Zhao and Yixuan Li of the Renmin University of China psychology department examined 132 studies on trust from around the world. The studies had a total of more than 1 million participants. The researchers focused on two types of trust, interpersonal trust and institutional trust, exactly the two types that can occur in workplaces. They found that both types of trust correlate with social, psychological, and to a lesser extent, physical well-being. If trust is so important, how do you get more of it? Unlike some other things, you cant mandate trust, and you cant demand that employees trust you, your company, or one another. But you can provide a workplace culture where trust can flourish. Here are some ways to do that. 1. Be transparent If you want employees to trust you and your company, its obviously important to treat them fairly. But its almost as important to let them know whats going on. You may have to find a delicate balance between sharing competitive information and keeping too much to yourself. But half the employees in a recent survey said lack of information about what was going on at their companies was their biggest source of stress. Keep that in mind when considering whether to share bad news. 2. Be predictable Many years ago, a CEO known for turning troubled companies around told me that his employees should never have to guess how he would answer a question. He told them his top priorities so they could always predict what he would say. He never wavered from those priorities. We may be fascinated with leaders like Elon Musk who often change their minds. But we trust those like Warren Buffett, who consistently say the same things year after year. The more they can predict what you will say and do, the easier it is for employees to trust you. 3. Be trusting yourself It may be hard for employees to trust you if, say, they know youre using software to monitor their keystrokes. Admittedly, treating employees with trust can backfire in the short term if you trust the wrong person. But in the long term, research shows that more trusting organizations tend to perform better, even in the often mistrustful retail industry. I believe the reason for this is that, while we can easily see the cost of employee dishonesty when it happens, we dont always recognize that our mistrust comes at a high cost as well. If an employee has their bag searched every time they leave work, they wont feel the same trust or affection for the company that they otherwise might. And its human nature for them to try to figure out a way to sneak items out despite the search. 4. Help employees trust one another Setting up competitions that pit employees against each other for important things like compensation can bring about acrimony and mistrust among them. Here again, the short-term gain may not be worth the long-term loss. Employees who trust their coworkers are more likely to collaborate effectively with them. Theyre also likely to be happier, and to stay in their jobs. Relationships at work are often the biggest deterrent to leaving a company. You can help foster those relationships by asking people to collaborate on important projects and letting them share the credit equally. You can also create teams across different functions so that employees get to know their colleagues outside their immediate areas. And of course, any opportunity for employees to socialize, get together outside of work, or work together on community projects can help create those relationships and that trust. In my book Career Self-Care, I explore workplace happiness, and how relationships at work can contribute to that happiness or detract from it. The more employees can trust in you, your company, and one another, the happier and less burned out theyll be. Its your job as a leader to make that happen. Like this column? Sign up to subscribe to email alerts and you’ll never miss a post. The opinions expressed here by Inc.com columnists re their own, not those of Inc.com. Minda Zetlin This article originally appeared on Fast Companys sister publication, Inc. Inc. is the voice of the American entrepreneur. We inspire, inform, and document the most fascinating people in business: the risk-takers, the innovators, and the ultra-driven go-getters that represent the most dynamic force in the American economy.
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E-Commerce
Tim Cook has led Apple for the past 14 years. In that time, the company’s market cap has jumped from $348 billion to $4 trillion. While his predecessor, Steve Jobs, might have been a leader in the field of innovation, few CEOs have shown the business acumen of Cook. But according to a report in the Financial Times, Cook’s run as CEO could be over as soon as next year. The report has set off a guessing game as to who will take over the tech giant when Cook departs. (Apple did not respond to a request for comment on the FT story.) The name most commonly mentioned is John Ternus, Apple’s senior vice president of hardware engineering, though reportedly no final decisions have been made yet. Ternus wasn’t always the first choice. Jeff Williams was once seen as Cooks most likely successor, but he ended his operational responsibilities in July and plans to retire in the next six weeks. Craig Federighi, Apples senior vice president of software engineering, and Greg Joswiak, senior vice president of worldwide marketing, have also been mentioned as possible successors in the past. However, both the Financial Times and Bloombergs Mark Gurman have said Ternus is the heir apparent. So who is the person who could inherit Apple as it approaches its latest crossroadswith product design more important than ever and AI coming to the forefront? Meet John Ternus At just 50, Ternus is the youngest top executive at Apple, but he’s hardly a newcomer. He has been with the company for nearly 24 years, leading the hardware engineering division since 2013. That puts him in charge of the teams behind the iPhone, iPad, AirPods, Mac, and more. Over the past five years, he has become a more visible presence at Apple events, unveiling the iPhone Air in early 2025 and showing off Apple’s first silicon chip, the M1, in 2000. His engineering background could assuage critics who have complained Apple has become a less revolutionary company under Cook’s leadership (despite the hundreds of products released during his tenure). Ternus started his career in tech at Virtual Research Systems, working on VR headsets for four years before joining Apple in 2001, which let him work on several products that would prove to be iconic for the company. By 2013, he was overseeing Mac and iPad development and added the iPhone hardware to his list of supervised products in 2020. He is said to be well-liked at the company and by Cook, helping to contribute to product road maps and future strategies for Apple. Will Cook retire? Cook turned 65 this month, which has warmed up the talk of his eventual retirement, but he has previously downplayed questions about whether he plans to step down. In January, Cook was a guest on the Table Manners podcast and said his retirement, whenever it should happen to occur, wont meet the traditional definition. He added he likely has many years left at Apple, though with the caveat that he doesnt want to be a CEO for the rest of his life. I dont see being at home doing nothing and not [being] intellectually stimulated and thinking about how tomorrow can be better than today, he said. I think Ill always be wired in that kind of way and want to work.
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E-Commerce
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