In recent years, the rise in demand for power transformers has been covered across the media landscape. However, while most industry conversations focus on materials, manufacturing capacity and logistics, a more fundamental constraint is emerging beneath the surface: people. Here, Adam Middleton, director of EnergetIQ Advisory and a CWIEME Berlin speaker, explores the growing talent crisis impacting the transformer industry, the effect of changes in workforce demographics and the rise of AI.

The surge in transformer demand didn’t come from a single source. It’s the result of multiple forces converging at once. There was the post-COVID rebound, of course. But there are many other factors layered on top of that, including the broader shift towards electrification, with everything from transport to heating being reimagined around electricity.

Then there’s the energy transition itself. Renewable generation is inherently more distributed than traditional fossil fuel systems, which means grids need to be rebuilt, reinforced and reconfigured. Add to that ageing infrastructure, with much of it now reaching end-of-life, and the need to increase base capacity, and the scale of the challenge becomes clearer.

Finally, and perhaps most strikingly, there’s the rise of data centres. In the UK alone, peak demand from data centres has reached around 9GW – that’s roughly equivalent to London’s peak demand. 

Put simply, demand is rising, being impacted from every direction, all at once.

The constraint no one wants to talk about

While supply chains are working hard to keep up, there’s a growing recognition that the biggest constraint may not be steel, copper or components – it’s talent. Demographic change is impacting the workforce in ways many organisations are still struggling to grasp. 

A significant proportion of the industry’s most experienced engineers are approaching retirement. In some cases, companies in the energy sector could lose up to half of their most experienced workforce within the next decade.

Despite the scale of the issue, many leadership teams remain focused on short-term profitability. Workforce strategy and recruitment are still often seen as an HR concern rather than a core business risk. In some cases, business leaders simply do not have the data to confirm the situation. 

The value of experience

While these demographics shift, AI is continuing to transform the industry.  

There’s a common narrative that AI will replace jobs. And to some extent, that’s true - certain roles will disappear. But that’s only part of the story. In reality, AI is increasing the value of experience.

AI tools are only as effective as the context they’re given. Without deep domain knowledge, they risk producing outputs that are technically plausible but practically flawed. This means that businesses can’t rely solely on AI. They need the technology plus the expertise. 

The people who understand systems, have seen failures and know how to interpret nuances are the individuals who can truly harness the power of AI. They are also the ones best placed to capture and codify knowledge before it disappears.

A widening gap

Companies are already investing heavily in early-career talent. That’s understandable, as new entrants are essential for the industry’s long-term future. However, younger employees are generally more mobile. Many leave a business within a couple of years, taking their acquired knowledge with them.

On the other hand, mid- and late-career development often receives far less attention. At the same time, outdated assumptions about older workers still exist despite clear evidence that experienced employees are highly productive and more likely to stay.

The result is a widening gap: increasing demand for expertise, coupled with a shrinking and underutilised pool of experienced talent.

Losing experienced staff means losing knowledge that can’t easily be replaced. It increases project risk, affects delivery timelines and ultimately impacts client trust. Oh, and don’t overlook the fact that there’s also a direct impact on margins. Retaining and effectively deploying experienced workers can significantly improve productivity and reduce costly errors or delays. In other words, getting this right isn’t just about avoiding risk. It’s about creating competitive advantage.

Many colleagues in the final phase of their career share the views that they want to continue to do “something valuable”, to contribute and to “give something back to the next generation”. As health and life expectancy continues to improve, the duration of retirement only increases. In the energy sector, with the huge growth forecast over the next 20+ years, we need all the help that we can muster. It might however be in a different format.

The risk of standing still

Unfortunately, there’s still a gap between recognising the issue and truly comprehending its scale. Unless this gap can be bridged, meaningful policy or organisational change will be difficult. And time is not on the industry’s side.

If action isn’t taken, the consequences could be profound. In the starkest terms, there’s a risk that transformer markets, and potentially wider supply chains, will become dominated by those who are better able to mobilise both capacity and talent.

What needs to change

First, organisations must understand their own demographics. Not in broad terms, but in detail. This includes who is likely to retire, when and what knowledge they hold. Second, there needs to be a greater focus on keeping employees engaged for longer careers. As working lives extend, support structures must evolve with them. Simply, work like never before to keep your employees fit and well. 

Third, training must become continuous and inclusive. AI is no longer a niche technical field that businesses can only recruit specialists for. It’s now a core part of everyone’s role. Therefore, everyone, regardless of age or role, must feel comfortable using it. This is and will be a continuous process. 

Fourth, companies must get serious about capturing knowledge. AI tools can be a huge help here, allowing organisations to actively record and structure expertise for the wider workforce. Embrace knowledge, especially the elements that are not written down, before it walks out of your door. 

Finally, there needs to be a more open and flexible approach to later careers. Many experienced professionals don’t want to stop working. They just want to work differently. Creating pathways for reduced hours, mentoring roles or phased transitions can bring significant value.

A defining challenge for the energy transition

The energy transition is often framed as a technological challenge. And it is, to a degree.

However, it’s becoming clear that the bigger bottleneck may be human. The demand for transformers, and the infrastructure they enable, is only going to grow. Meeting that demand will, of course, require investment and innovation, but it also means a rethink of how the industry values, develops and retains its people.

Without the right expertise in place, even the most ambitious plans risk falling short, and that’s a challenge the industry can’t afford to ignore.

To continue the conversation and explore how the industry can tackle these challenges head-on, join the discussion at CWIEME Berlin, taking place at Messe Berlin from May 19 to 21, 2026.  Bringing together leaders from across the global coil winding, transformer and electrical engineering sectors, this year’s exhibition will be an opportunity to share insights, hear from experts like Adam Middleton and collaborate on building a workforce and supply chain that’s fit for the future.