1 | Building Technologies Program eere.energy.gov The Parker Ranch installation in Hawaii 

## Small Manufacturer Survey Overview



# Distribution Transformers December 20, 2011

Low Voltage Dry Type2 | Building Technologies Program eere.energy.gov 

## • Definition: A distribution transformer manufacturer and its affiliates may employ no more than 750 employees to be considered a small business.

• DOE consulted several sources to identify manufacturers:

• Past rulemaking contacts

• SBA database

• Asked manufacturers during interviews about small businesses

• DOE’s certification and compliance database

• NEMA member lists

• This search yielded 56 unique manufacturers:

• Of these, 35 appeared to produce LVDT transformers based on an initial screening and contacts. Upon further investigation, DOE found 6 of these to be either distributors or engineering firms only, leaving 29 potential manufacturers. 

# Small Business Analysis3 | Building Technologies Program eere.energy.gov 

# Small Businesses in LDVT Market

14 Meet US Small Biz Definition 11 Low-volume, But Don't Meet Definition 29 Companies Identifed as LVDT Manufacturers

4 Large Mkt Share and Don't Meet

Small Biz Def

Reached 5 Reached 8



# • Of the 29 potential LVDT manufacturers DOE identified:

– 4 firms are large companies with large market share

– 14 firms met the definition of a small business

• Of these, DOE successfully reached 8 (2 of which said DOE

- covered were not meaningful to their business).



## – 11 firms could be considered low

- volume players in the industry but do NOT* meet the definition of a U.S. small business

• Of these, DOE successfully reached 5.

* Six of these 11 had parent companies with more than 750 employees; the other five operated primarily outside the US).4 | Building Technologies Program eere.energy.gov 

# Survey Summary

• Of the 6 US Small businesses DOE reached:

– 4/6 produce in the U.S.; however, the majority of the volume produced by these six is produced outside the country.

– 3/6 also compete in MVDT market also.

– 3/6 have in

- house mitering or wound core construction capability.

• Of all 11 low

- volume businesses surveyed:

– 6/11 produce in US; however, the majority of the volume produced by these six is produced outside the country.

– 5/11 compete in MVDT market also.

– 7/11 have in

- house mitering or wound core construction capability.

– 4 made nearly all cores in

- house; 2 sourced all cores; 5 had a mix5 | Building Technologies Program eere.energy.gov Issue: 

## Answers to each question are scrambled in each row to protect confidentiality. A given column does NOT represent one manufacturer’s complete set of answers.

Revenue from DOE

- covered LVDT 

## 35% 25% 20% 5% 65% 80%

Expected Impact and Response to a standard set at a NEMA Premium Level Unsure. But probably don’t have ability to meet. No impact. Not a significant impact. Probably would

source cores;

depends on steel prices. Would probably exit product line. Minimum of $750K investment in new machinery. Significant impact, but would likely invest to make in house, although

source a greater share of cores. Unsure. If capital too great, they’d exit the LVDT market.

Also in MVDT? Yes No Yes No. No Yes.

Produce in US? Yes No. No Yes Yes Yes.

Share of cores sourced currently. 100% 0% Varies depending on pricing. 0% 20% 0%

In

- house mitering or wound core capability?* Yes. Yes. No. Yes. No. No.

Capital and

one

- time R&D

investments Unknown $1.6 M for NEMA Premium Not provided. Not a concern. $0 Unknown $750K to $1.5M6 | Building Technologies Program eere.energy.gov Issue: 

## Answers to each question are scrambled in each row to protect confidentiality. A given column does NOT represent one manufacturer’s complete set of answers.

Share of Revenue from DOE

- covered LVDT 

## 100% Up to 40% 100% 35% 35%

Expected Impact and Response to a

standard set at a NEMA Premium Level Unclear; significant investment in that

there would be investment would be R&D for new designs. No Impact. Already in high efficiency focus. No Impact. Already in high efficiency focus. No Impact. Already in high efficiency focus. Big Impact. Would likely

source cores.

Also in MVDT Market? No No Yes No No

Produce in US? No No Yes No Yes

Share of cores sourced currently 100% 0% Varies 0% Varies

In

- house full mitering or wound core capability?* Yes Yes Yes No Yes

Capital and one

time R&D investments $0 $1.5M minimum Unknown but significant R&D $0 $07 | Building Technologies Program eere.energy.gov 

## • The wide range of responses from small manufacturers makes clear summary statements difficult come by.

– Five manufacturers thought there would be no significant impact for them at NEMA Premium levels.

• Two of these companies expressed some ambivalence about CSLs higher than NEMA Premium because of the trade

- off between the potential for increased market share versus the prospect of the commoditization of their high

- efficiency niche.



## – Six manufacturers thought the impact would be significant or was too uncertain to comment on at this time. Of these 6 companies:

• Three said they might exit the DOE

- covered LVDT product line or source their cores after considering the costs of compliance.

• One business indicated any change in standards would threaten their business altogether. 

# Survey Conclusions