Utility Dive•8 days ago
Manufacturers prefer price hikes over reshoring to combat tariff effects
Key Takeaway
Developers and large power consumers should anticipate higher equipment and component costs due to manufacturers passing on tariff-driven price increases, impacting project economics and PPA pricing.
AI Summary
- •A survey indicates 86% of manufacturers will pass on cost increases rather than reshore production, impacting equipment and component prices.
- •Raw material costs are projected to rise by 5.4% in 2025 and an additional 4.4% in 2026.
- •This trend signals higher capital expenditures for power project developers and increased operational costs for large power consumers due to tariff effects.
Topics
financingoempolicyppa
Article Content
A survey revealed 86% of manufacturers plan to pass on at least some of their cost increases. Raw material price increases averaged 5.4% for 2025 but are projected to see an overall increase of 4.4% in 2026.