Price trends are holding steady: the Producer Price Index (PPI) shows a 2.55% increase for electrical equipment manufacturing and a 1.71% rise for HVAC and commercial refrigeration systems. On the demand side, electrical equipment orders are up 2.2% with a 1.0% increase in shipments, pointing to stable project flow. The mechanical side continues to outperform, with orders jumping 19.6% and shipments up 22.5%, driven by high project volume and continued procurement strength.
Estimated Equipment Lead Times
Varies Due to Equipment Sizing
TARRIFF IMPACTS
Tariffs and trade policy continue to create significant challenges across the supply chain. Recent U.S. actions, including the introduction or expansion of tariffs on key components from China, have ongoing pressure on trade relationships with the EU and other global partners. In response, manufacturers are adapting by shifting sourcing strategies, relocating some assembly operations to the U.S., or, in some cases, absorbing increased shipping and logistics costs. These adjustments are contributing to greater price volatility, extended lead times, and added uncertainty around product availability. We anticipate limited clarity until late 2025 at the earliest, with HVAC and electrical packages currently experiencing the most significant impact.
| Year | AVG. INDEX | PERCENT% |
|---|---|---|
| 2004 | 100 | Base Year |
| 2010 | 114 | -4.5% |
| 2011 | 117 | 2.5% |
| 2012 | 121 | 3.5% |
| 2013 | 124 | 2.5% |
| 2014 | 126 | 2.0% |
| 2015 | 127 | 1.0% |
| 2016 | 129 | 1.5% |
| 2017 | 133 | 3.0% |
| 2018 | 138 | 3.8% |
| 2019 | 142 | 3.0% |
| 2020 | 145 | 2.8% |
| 2021 | 161 | 10.3% |
| 2022 | 185 | 15.1% |
| 2023 | 204 | 10.4% |
| 2024 | 209 | 2.4% |
| 2025 | 227 | 8.6% |
