Navigating Global Supply Chain Challenges in Power Electronics Manufacturing

Lead Engineer Kevin Byerly at work in CorePower’s Pittsburgh manufacturing facility.

The Imperative for U.S.-Based Manufacturing 

Global supply chain disruptions, rising material costs, and geopolitical tensions have significantly impacted industries relying on traditional power electronics components, such as motors, transformers, and inductors. The COVID-19 pandemic and ongoing U.S.-China trade tensions have further magnified these issues, particularly affecting the sourcing of rare-earth materials and the shipping of critical components. 

According to the U.S. National Association of Manufacturers, 60% of manufacturers reported supply chain disruptions and rising costs as their primary challenges. Rare-earth materials, crucial for many motor and generator components and heavily sourced from China, have experienced price increases exceeding 200% in the last three years.[1] 

As industries like industrial power, data centers, renewables, and grid integration continue to grow, the demand for reliable, efficient, and cost-effective power electronics solutions has never been higher. U.S.-based manufacturing presents a critical solution for mitigating these vulnerabilities and enhancing supply chain resilience. 

The Challenges of the Current Global Supply Chain 

U.S. tariffs, material shortages, and unreliable overseas production have severely disrupted supply chains for essential magnetic components such as inductors and transformers. Dependence on foreign suppliers, especially in China and Southeast Asia, has increased industry exposure to trade tensions and geopolitical risks. In 2024, more than 40% of U.S. manufacturers faced extended lead times for crucial components due to the global semiconductor shortage and tariffs imposed on rare-earth materials.[2] These supply chain issues are widespread, significantly affecting sectors such as renewable energy, electric vehicles, grid integration, and data centers, which all rely heavily on high-performance magnetics. 

CorePower Magnetics: A U.S.-Based Manufacturing Solution 

CorePower Magnetics™ addresses these challenges by utilizing innovative nanocrystalline core technology and advanced manufacturing processes to produce high-efficiency, high-power custom transformers, inductors, and our standardized inductor family. Additionally, our motor products utilize rare-earth-free materials, reducing thermal losses and significantly improving efficiency and reliability, directly addressing modern industrial demands. 

By maintaining complete U.S.-based vertical integration for all products, CorePower ensures rapid market entry, superior cost efficiency, and greater quality control. This approach reduces reliance on unpredictable international supply chains, offering stability and reliability in a volatile global market. 

Cross-Sector Impact

Industrial & Data Center Power 

CorePower’s CPMLMAX™ inductors support the critical demand for high-efficiency power conversion systems used extensively in industrial automation and data center infrastructure. The data center industry alone is projected to grow by 15% annually between 2024 and 2028, driven by expanding cloud computing services and AI infrastructure.[3] 

Grid, Microgrids & Grid Integration 

As renewable energy sources increase their share of electricity generation, grid systems must efficiently manage these variable inputs. CorePower’s advanced transformers and inductors enable renewable energy integration, significantly improving grid stability and minimizing energy losses. By 2025, renewable energy will represent over 40% of U.S. electricity generation, underscoring the growing importance of robust power electronics solutions.[4] 

Utilities & Renewable Energy Systems 

CorePower offers U.S.-manufactured components specifically designed to enhance the efficiency and reliability of solar inverters, energy storage systems, and wind energy technologies, ensuring these systems operate at maximum efficiency and minimal downtime. 

Commercial EV Charging Infrastructure 

With the expanding infrastructure supporting electric vehicles, CorePower’s standardized inductors are ideal for DC-DC converters and off-board chargers, ensuring robust and efficient charging capabilities for commercial EV installations. 

Oil & Gas 

CorePower’s durable, high-efficiency magnetics are specifically designed to meet the rigorous demands of power systems in remote and challenging oil and gas environments, ensuring reliable operations even in extreme conditions. 

Aerospace & Defense 

Our compact, power-dense components meet the stringent requirements of aerospace and defense applications, offering unmatched reliability, durability, and operational flexibility in mission-critical scenarios. 

Investing in U.S. Manufacturing 

CorePower Magnetics is at the forefront of a significant shift toward domestic manufacturing, providing efficient and scalable power electronics solutions. Investing in U.S.-based magnetics manufacturing enhances supply chain resilience, supports critical industries, and positions businesses strategically for sustainable future growth. 

Learn more about how CorePower Magnetics can empower your business by visiting corepowermagnetics.com. 

References 

[1] Reuters: https://www.reuters.com/markets/commodities/what-are-rare-earth-metals-why-are-they-demand-2025-02-26 

[2] National Association of Manufacturers: https://www.nam.org 

[3] Gartner: https://www.gartner.com 

[4] U.S. Energy Information Administration: https://www.eia.gov