Discover how ERMCO manufactures dry type and liquid filled transformers and components to keep the world running reliably
Established in the early 1970s in Dyersburg, Tennessee, Electric Research and Manufacturing Cooperative, Inc. (ERMCO) is a wholly owned subsidiary of Arkansas Electric Cooperative Inc. (AECI). With a commitment to powering part of the world, ERMCO is closely aligned with the cooperative’s mission and leverages its resources to better serve utility customers.
To learn more about the company’s evolution, we spoke with Kurtis McMillen, ERMCO’s Chief Sales Officer. “A significant portion of ERMCO’s success can be attributed to our focus on employees, our strong partnerships with our customers, and our commitment to continuous innovation and improvement,” McMillen begins. “Our organization has experienced significant growth throughout its history, leading to an impressive presence that spans both state and international markets.” 
Expanded capacity
Manufacturing a full range of liquid-filled transformers, dry-type transformers and transformer components, today ERMCO operates across 12 locations, comprised of nine manufacturing facilities and three non-manufacturing facilities. A pivotal moment in the company’s growth occurred in December 2022 with the acquisition of Spire Power Solutions, which included Power Partners, Pioneer Transformers, V&F Transformer, and Jefferson Electric. This acquisition has not only significantly augmented ERMCO’s workforce, but also positions the company for sustained growth in the future.
“ERMCO is committed to prioritizing the needs of our customers, leveraging expanded capacity to enhance our product offerings and manufacturing capabilities,” McMillen states. “We envision a future where we continue to innovate and lead the electrical manufacturing sector, fostering partnerships that drive advancements and excellence in operational development. Our strategic focus will be on scalability, efficiency, and meeting the evolving needs of our customers, ensuring that ERMCO remains at the forefront of the industry.”
Client options
As the utility sector’s leader in distribution transformers – shipping thousands of transformers across the US and Canada each day – ERMCO is dedicated to meeting America’s clean energy needs. “We are continuously improving our manufacturing output to increase volumes, maintain quality, enhance product efficiency, while achieving our sustainability goals,” McMillen shares. With already impressive production figures, ERMCO has no intention of slowing down. The organization is focused on strategically expanding its production capacity for both single-phase (1PH) and three-phase (3PH) products.
“Our approach involves a gradual increase in production at each facility, allowing us to manage resources effectively while ensuring high-quality outputs,” McMillen explains. “For our 1PH production, we plan to redesign a portion of our existing product line to incorporate amorphous core materials while utilizing the previous designs as needed. This addition not only aligns with the Department of Energy’s (DOE) 2029 efficiency standards, but also enhances the overall performance and energy efficiency of our offerings and creates an amorphous steel option for clients. We will implement this redesign incrementally, allowing each facility to realign production processes without disrupting current operations.”
In the case of 3PH production, McMillen adds that some current output will need to be redesigned using amorphous core material to meet the DOE 2029 standards. “This will be executed in phases, ensuring that we can monitor performance and make necessary adjustments at each facility before scaling production further. By taking this measured approach, we can ensure that all teams are adequately trained and that any challenges can be addressed in real time.” McMillen further points out, “ERMCO has been producing amorphous transformers for years, and since 2022 we are one of the only US transformer manufacturers that can make all or our amorphous cores in-house.”
In addition to capacity expansions, ERMCO is also implementing a unified enterprise resource planning (ERP) system across all locations. “This initiative is designed to enhance operational efficiency and streamline our processes by consolidating data and resources onto a single platform,” McMillen says. “By integrating each facility into this ERP system, we aim to improve coordination and transparency, ultimately leading to better decision-making and resource management. Coupled with our capacity expansions, these initiatives will position us to meet our growth objectives while adhering to industry standards and maintaining our commitment to quality, sustainability and efficiency.”
Powered by people
ERMCO believes success in production is impossible without the engine running it – its people. Its company values are intrinsic to its operations and are aptly referred to as POWER: People, Ownership, Winning, Excellence, and Relentless. “At ERMCO, our employees are our greatest asset,” McMillen emphasizes. “We prioritize their well-being, development, and satisfaction. Investing in our people creates a positive and supportive work environment that fosters innovation, teamwork, and a strong sense of community.
“We believe that success is achieved through teamwork and collaboration, so we empower employees to take ownership of their work and hold themselves accountable,” he continues. “This culture of ownership encourages initiative, problem-solving, and a culture where everyone works together towards a common goal.”
The company’s commitment to its employees also extends to its customers. “By continually prioritizing our customers, we ensure that their needs and input drive our innovations and improvements, enabling us to adapt to the market’s ever-changing demands,” McMillen says. “Our combined focus on employees, customers, and product quality strengthens our foundation and positions our organization for continued growth and success in an ever-evolving market.”
In terms of products, it’s clear that ERMCO is dedicated to producing the highest quality distribution transformers and components, striving for continuous improvement in all aspects of the manufacturing process from design and engineering to production and quality control.
Valuable parnerships
“Our commitment to excellence ensures that our products meet the highest industry standards and exceed our customers’ expectations,” McMillen elaborates. “We value building strong, mutually beneficial relationships with our customers, suppliers, and partners, which are established through open communication, trust, and respect. Such partnerships are particularly valuable for navigating challenges and emerging from issues as a stronger company.”
Indeed, relationships with trusted partners, such as IFD Technologies, are essential to delivering practical solutions for the distribution system of today, and for tomorrow.
ERMCO’s motto, ‘Transforming Lives, Powering Futures,’ encompasses two essential dimensions of the company’s mission, demonstrating its commitment to delivering high-quality, reliable distribution transformers that enhance daily life and promote sustainable development. ‘Transforming Lives’ signifies ERMCO’s pivotal role in improving access to electricity, which enables homes and businesses worldwide to thrive. ‘Powering Futures’ emphasizes the long-term benefits of its products in fostering innovation and growth, ensuring that communities are well-prepared for future challenges.
Enhanced presence
McMillen shares his thoughts on the company’s motto: “This phrase underscores our dedication to our employees and their families, who are integral to our success. We’re committed to creating meaningful employment opportunities, allowing our workforce to build fulfilling careers that support their families. Our investment goes beyond our workforce though, as we believe our investment in training and personal development also strengthens communities and contributes to the overall economy. Ultimately, our motto captures our dual mission of empowering employees while driving broader economic growth.”
Looking ahead, ERMCO remains focused on meeting customer demand while making strategic investments in its facilities and workforce. With market expectations constantly evolving, the business recognizes the need to adapt operations to provide timely and effective solutions. In light of the recent storm season, the remainder of 2024 will see ERMCO prioritize support for areas most affected to ensure resources are directed to helping rebuild communities.
Considering the next five years, McMillen envisions significant growth and expansion for ERMCO, particularly with a strong focus on the North American utility market. “Our strategy is centered on enhancing our presence in this region, leveraging the increasing demand for innovative energy solutions and infrastructure improvements,” McMillen shares.
Alongside the topics covered, McMillen is keen to emphasize the company’s commitment to sourcing a high percentage of raw materials and components domestically. “This strategic approach significantly mitigates our risk of supply chain disruptions often associated with overseas sourcing,” he says. “It also bolsters our commitment to national security, ensuring our supply chain remains secure and less vulnerable to geopolitical risk.
“Prioritizing local suppliers not only supports the domestic economy but also enhances our operational resilience, allowing us to respond more swiftly to market demands and maintain consistent product quality. Overall, this approach aligns with our strategy to deliver reliable, secure solutions to our customers while contributing to the broader goal of enhancing America’s infrastructure resilience,” McMillen concludes.
ERMCO’s journey exemplifies the power of aligning innovation, sustainability, and community values. Through strategic acquisitions, operational enhancements, and a steadfast focus on employees, customers, and suppliers, ERMCO is meeting today’s energy demands while preparing for the next generation of energy solutions.
The company’s vision is to be the most valued partner to the customers it serves. ERMCO does this by investing in its workforce, continuously improving processes to meet customer needs and expectations, and providing unparalleled product quality and service.