RESCO Supply Chain Update: Stabilized Inflation, Normalized Lead Times to Continue in 2026

As we begin 2026, the improvements we’ve experienced in the product supply chain over the past year puts RESCO on very positive and firm footing to continue to deliver exceptional service and reliable inventory to our members and other customers, ensuring the success of their operations.

The return to pre-COVID conditions in the material supply chain has had a positive influence on the factors that impact our operations and those of our manufacturer partners, including inflation rates, lead times, and product availability.

YEARLY INFLATIONARY RATES NOW AT PRE-COVID LEVELS

The effect of the Covid supply chain disruption during the early part of this decade can’t be overstated within the electric utility industry: between 2021 and 2024, the cost of all of the distribution and transmission utility products RESCO supplies to members and other customers increased by over 50%.

Fortunately, the annual yearly inflation rate has dropped dramatically over the past two years to a rate more in-line with pre-COVID levels, and we anticipate annual increases between 2% and 4% moving forward. However, the large inflationary cost increases that impacted electric utility products from 2021-2024 will likely remain and, unfortunately, continue to place a significant burden on work-plan budgets for years to come.

LEAD TIMES IMPROVE

We are seeing shortened lead times for the majority of products that we sell. A few categories, however, continue to experience challenging and longer lead times. These include:

• Substation class power transformers (due to the vast build-out of transmission and substations nationwide).

• Primary underground cable and accompanying underground connector accessories (as utilities place more of their services underground).

(And as a service to our readership, we provide updated lead times for 17 product categories each month in our monthly newsletter.)

INVENTORY AT RECORD LEVELS AND GROWING

To counter extended lead times on the products mentioned above, members of our RESCO team continue to work with our members and customers like yours to plan out your material needs for the coming year. By doing so, we’re able to place more timely orders with our manufacturer partners, which, in turn, helps ensure that the products are delivered and ready when our members and customers need them.

Additionally, product inventory at our 10 regional warehouses is at record levels and continues to grow, enabling us to adequately weather any unforeseen disruptions in the supply chain that could impact lead times and product availability.

(As mentioned in the July 2025 edition of our Plugged-In With RESCO newsletter, our next phase of expansion will be just north of our current facility in Moorhead, MN, with the building of new offices and a warehouse on 15 acres of land. Once completed, the site will provide us with substantial indoor and outdoor storage space, as well as more office space to accommodate our growing team.)

RESCO’s approach in carrying very large amounts of electric distribution and transmission inventory proved invaluable during the COVID pandemic, and we continue to utilize this strategy in our current operations to ensure sufficient stock in the event of future challenges.