Odd Lots Lots More on America's Electrical Components Crisis
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Apr 12, 2024 Chris Hatch, a partner at Forza Development and a seasoned commercial real estate developer, shares critical insights into the ongoing electrical components crisis. He discusses the persistent shortage of transformers and switchgear affecting construction projects across the U.S. Many developments sit idle, waiting on these essential components due to lingering supply chain issues from the pandemic. Hatch sheds light on the financial ramifications and the complex web of the supply chain, revealing the pressure on businesses to adapt amid rising costs and delays.
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Switchgear Delay Impact
- Chris Hatch ordered switchgear a year in advance, expecting a long lead time, but the supplier then added another year to the delay.
- This significantly impacts project timelines and increases costs.
Financial Impact of Shortages
- The financial impact of switchgear shortages primarily falls on the developer and their investors.
- This is because developers bear the cost of delays and financing.
Building Ready but for Switchgear
- A completed building is ready for tenants, but the missing switchgear prevents occupancy.
- This highlights the critical role of this component in project completion.