National security can look different when viewed from different perspectives. Sometimes it looks like an F-35 roaring overhead; other times it looks like domestically produced powerlines, connectors, and substations. On the domestic side of national security, both manufacturing and grid reinforcement are national imperatives for the country. Our grid faces mounting challenges such as aging infrastructure that’s constantly subjected to greater demand. The resilience of America’s electrical network hinges not just on grand infrastructure plans, but on domestic suppliers and manufacturers who provide essential components. These domestic producers are the frontline defenders of our national security by ensuring the grid remains stable, reliable, and resistant to both natural and man-made threats.

The Current State of Domestic Manufacturing

The U.S. electrical component manufacturing sector presents a mixed picture. While America maintains leadership in certain advanced technologies, we’ve witnessed concerning trends in baseline component production. Statistics from the Department of Energy show that imports now account for over 70% of critical grid components which is a significant shift from just two decades ago.

Manufacturing facilities for transformers, specialized switches, and other essential grid equipment have dwindled across American soil. This decline was not inevitable but rather the result of economic pressures, foreign competition, and policy decisions that didn’t prioritize domestic production capacity.

Agile manufacturers like SAT Plating are one of the bright spots in this landscape. The specialized manufacturing capacity of small manufacturers creates components that withstand extreme conditions–exactly what’s needed for grid resilience. Yet companies like SAT remain exceptions rather than the rule.

Weak Links in the Chain

Our power infrastructure depends on thousands of specialized parts. Many come from overseas suppliers, creating several vulnerabilities:

1. Extended supply lines that break during international conflicts
2. Quality control challenges from distant manufacturers
3. Security risks from components with unknown origins
4. Long lead times for crucial replacement parts

The 2021 Texas grid failure highlighted these vulnerabilities. When extreme weather knocked out power across the state, replacement components took weeks to arrive. This isn’t just an inconvenience; it’s a genuine national security threat. Furthermore, during the COVID-19 pandemic, we saw how global supply chains can collapse in a matter of days. Critical medical equipment shortages gave us a preview of what could happen with electrical grid components. A similar disruption affecting power infrastructure would have far more devastating consequences.

Policy Changes Taking Shape

Fortunately, Washington has begun to recognize these risks. Recent legislation aims to bring critical manufacturing back to American soil.

The Infrastructure Investment and Jobs Act allocated about $65 billion specifically for grid enhancements, with requirements that certain components must be American-made.

Tax incentives now exist for companies that produce essential grid components domestically, covering everything from transformers to specialized plating services like those provided by SAT Plating.

From the beginning of his second term as president, grid security has also been on the Trump administration’s radar. EO 14262 (Strengthening the Reliability and Security of the United States Electric Grid) was signed on April 8, 2025. The goal of this EO was to increase grid resilience in the midst of growing demand from AI data centers. While executive orders usually lack the legislative weight of bills, they do signal a recognition in Washington of the importance of grid modernization and security.

Looking Ahead: The Future of U.S. Component Manufacturing

Several trends point to a brighter future for domestic grid component production. Advanced manufacturing techniques have reduced the cost gap between domestic and foreign production. Automation, 3D printing, and improved processing methods make American manufacturing increasingly competitive.

The growing focus on grid security has created new market opportunities for domestic producers. Government contracts, utility company investments, and private sector initiatives all contribute to this expanding market. Reshoring efforts also continue to gain momentum. Companies that previously moved production overseas now reconsider domestic options due to tariffs, rising transportation costs, quality concerns, and supply chain risks.

Regional manufacturing hubs have begun to form around the country, creating ecosystems where suppliers, producers, and customers exist in close proximity, fostering innovation and reducing costs.

The Stakes Couldn’t Be Higher

Few things would damage American security and prosperity more than exploited vulnerabilities in the electrical grid. Extended outages affect everything: hospitals, water treatment, communications, financial systems, transportation, and basic necessities.

Domestic manufacturing offers the best protection against these threats. When crucial components come from trusted American sources, our grid becomes more secure. Local production means faster response times during emergencies. It creates jobs that strengthen communities. It ensures that essential knowledge and skills remain within our borders. Perhaps most importantly, it reduces our dependence on international sources that might become unreliable during global tensions.

Companies that specialize in critical components, like SAT Plating, form a key part of America’s security infrastructure. As we face increasing challenges from extreme weather, cyber threats, and global instability, domestic manufacturing capacity will continue to grow in importance. For more information on working with SAT Plating or for updates as we help ensure the U.S. remains a global leader in energy and technology—visit our website or reach out to our team today!