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Hesston remanufacturer Midwest Electric Transformers outlines growth, supply pressures and short lead times
Summary
Midwest Electric Transformers testified to the House committee about remanufacturing transformers, citing growth to about $40 million in revenue, a workforce of roughly 50, short lead times (4–12 weeks) for remanufactured units and rising commodity costs that affect pricing and procurement.
Representative King introduced Mitch Swigert, president and CEO of Midwest Electric Transformers of Hesston, Kansas. Swigert told the Committee on Commerce, Labor and Economic Development that he and a partner purchased the company’s assets in 2019, remanufactured and expanded the business, and now employ about 50 people.
Swigert described the company’s core business as remanufacturing electrical equipment that utilities and industrial customers reuse: voltage regulators, three‑phase and single‑phase pad‑mount transformers, reclosers and other components. He said remanufacturing helps extend the life of aging infrastructure, and noted "we remanufacture electrical equipment" and "we're now at 50 employees" and "last year we did $40,000,000." He told members the firm ships nationwide and that roughly 85% of sales go to out‑of‑state customers.
On costs and lead times, Swigert said commodity prices have risen sharply (he cited copper at about $6.30 per pound in the hearing) and that new units can carry lead times of 40–50 weeks while remanufactured replacements generally ship in 4–12 weeks. He emphasized the company’s rapid storm‑response capability, describing instances when crews were on the road within 24 hours.
Swigert also discussed workforce development and training: many hires come through word of mouth, initial positions require weeks rather than months to train, and the company invests in on‑the‑job progression for employees. He identified long‑term market drivers including renewables and aging distribution infrastructure, and noted potential regulatory uncertainties from Department of Energy changes affecting rebuildability of certain new core materials.
Committee members asked about hiring timelines, how remanufacturing compares with new purchases for data centers and utilities, and how pricing pressures affect rural cooperatives. Swigert said remanufacturing remains competitive where speed and local service matter and that the company plans further capital investments to handle larger equipment.
The committee thanked Swigert for his testimony and adjourned.
