Electric Research and Manufacturing Cooperative, Inc. (ERMCO), a leading manufacturer of distribution transformers, today announced it will open a new manufacturing facility in Maricopa County, Arizona.

This strategic expansion marks a bold step in ERMCO’s mission to be the Industry’s Most Valued Partner and reflects the company’s commitment to innovation, growth, and community engagement. The investment will create more than 500 new jobs.

Located in Building A, 15784 W. Hatcher Rd. in Waddell, approximately 30 miles west of Phoenix, the Arizona facility will expand ERMCO’s Three-Phase transformer production capabilities and create opportunities to explore new manufacturing options. This investment positions ERMCO to meet the growing demand for reliable power distribution and strengthen the grid for generations to come.

“Arizona’s commitment to reliable energy infrastructure is driving our state’s growth, and ERMCO’s new manufacturing facility will build on that momentum,” said Governor Katie Hobbs. “This facility will help strengthen our energy grid and create hundreds of new jobs for Arizonans.”

This is the first time ERMCO has expanded manufacturing operations west of the Mississippi River, a move driven by strategic advantages that Arizona offers. The state provides a strong business climate, a skilled labor market, and proximity to key customer regions in the western U.S. This location enables ERMCO to better serve utilities, reduce transportation time and costs, and deliver transformers more efficiently – while building partnerships with local communities and workforce development programs.

“This expansion is about more than building a facility – it’s about building the future,” said Tim Mills, ERMCO President & CEO. “Our goal is simple: power the grid and power progress. This investment ensures ERMCO is ready to meet the challenges of tomorrow.”

The new facility will span 566,121-square-feet, including 4,070-square-feet for office space. It is expected to be operational in 2027, with foundational work beginning in 2026 to ensure readiness for full production. This expansion is anticipated to create more than 500 jobs for the local community, offering long-term opportunities in engineering, skilled trades, and operational support.

“This new manufacturing facility is a big win for Arizona workers and our economy,” said Senator Mark Kelly. “It means hundreds of good-paying jobs, new opportunities in skilled trades and engineering, and a stronger local manufacturing base right here in Maricopa County. This project will also help strengthen our electric grid so families and businesses can count on affordable, reliable power for years to come.”

“ERMCO’s multi-million dollar investment in Arizona is exactly the kind of project our state needs. This project will not only strengthen the power grid that families and businesses across our state rely on every day, but it will also create a lot of great-paying jobs that don’t require a four-year degree. I’m excited to see this project come to life in Arizona,” said Senator Ruben Gallego.

Increasing Three Phase production is essential to meet the evolving demands of the power industry. Rapid urbanization and industrialization, combined with grid modernization initiatives and heightened safety requirements, are driving utilities to upgrade infrastructure. The commercial and housing markets, along with the push for energy efficiency, add further pressure for reliable solutions. Many utilities face an urgent need to replace aging transformers – some decades old – to improve grid reliability and reduce outage risks. ERMCO is taking decisive steps to expand Three Phase production capacity to ensure they deliver the performance, reliability, and innovation their customers need to power the grid of the future.

“ERMCO’s significant facility will reinforce Arizona’s energy and advanced manufacturing leadership,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “We’re proud to welcome ERMCO to Arizona, and further strengthen our position as one of the nation’s premier destinations for energy innovation and reliability.”

“The three-phase distribution transformer is a key product that is literally powering economic development across the United States,” said Christine Mackay, President and CEO, Greater Phoenix Economic Council. “Having ERMCO in Greater Phoenix will help build capacity of this important component to our electrical ecosystem, enhancing the supply chain and addressing power demands for residents and businesses in the coming decades.”

“ERMCO’s strategic expansion to Waddell is a testament to Maricopa County’s business-friendly environment, skilled labor pool, and robust workforce development programs,” said Supervisor Debbie Lesko, Vice Chair of the Maricopa County Board of Supervisors, District 4. “I’d like to warmly welcome ERMCO to the West Valley and thank them for their generous investment. I look forward to the economic development and job creation this new manufacturing facility will bring to Maricopa County for years to come.”

“ERMCO’s expansion into Arizona represents a positive step for the region and supports the reliability of energy infrastructure,” said Stacy Derstine, Vice President of External Affairs for Arizona Public Service (APS). “Increasing manufacturing capacity in the West helps strengthen supply chain resilience, and we look forward to collaborating with ERMCO and other partners to ensure utilities have access to the essential equipment needed to maintain a strong electric grid.”

“Our commitment has always been to our people, our customers, and the industry we serve,” Mills said. “This investment ensures we can deliver the reliability and innovation our customers expect, while creating opportunities for our team members and supporting the communities where we operate.”

ERMCO’s story began in 1972, when the company manufactured its first transformer in Dyersburg, Tenn. Since then, ERMCO has expanded across North America, with additional facilities in Tennessee, Georgia, Wisconsin, North Carolina, Texas, Granby (Quebec), Reynosa (Mexico), and now, Arizona.

The transaction was facilitated by Cushman & Wakefield, with Sean Kropke, Bradley Migdal Mike Haenel, and Justin Smith representing ERMCO.