With electricity demand expected to increase 25% by 2030 and 78% by 2050 from 2023 levels, utilities are facing a perfect storm—aging infrastructure, climate-driven disruptions, and increasing expectations for reliability and resilience. Meeting this era will require more than continuous improvement; it requires new sources of energy, and a fundamental rethinking of how the industry delivers results. Procurement is no longer a support function—it has become the industry’s most important power builder. Long before workers reach the field, procurement decisions determine whether a transmission and distribution (T&D) project moves forward or is halted, shaping access to critical assets, supplier reliability, and risk exposure.
COMMENTARY
Once viewed primarily as a procurement and cost containment function, procurement is now seen by forward-looking services as an enabling value, strategic advantage. In an era defined by supply volatility, regulatory pressure, and unprecedented financial expansion, procurement secures supply, manages risk, and keeps T&D programs on schedule, while unlocking capacity and value that has historically been left on the table. When disruptions occur, procurement is where the pressure comes first. That fact puts you in a position to anticipate problems, detect early warning signals, and intervene before problems enter the field. Resources that effectively leverage procurement don’t just manage challenges—they actively build the capabilities needed to deliver reliable, timely T&D results.
Data centers alone are expected to triple their energy consumption by 2028 compared to 2023 levels. Operating around the clock, a single campus can draw as much energy as a central city, straining regional grids during both peak and off-peak hours. Add to that the rapid adoption of electric vehicles and the electrification of heating systems to move the load from electric to electric, and the scale of the challenge becomes clear. Procurement is central to meeting this growing demand. By securing capacity early, negotiating favorable prices for critical supplies and equipment, and working closely with suppliers to prevent bottlenecks, procurement enables utilities to develop infrastructure efficiently and maintain reliable operations.
America’s utility infrastructure has long been slated for modernization, making the challenge of meeting growing demand even more difficult. Many US transmission lines have passed their 50-year lifespan and utilities are investing in these upgrades at record rates, with capital expenditures reaching $178 billion in 2024 and expected to reach $220.7 billion in 2026. But these investments face tough conditions in a volatile market. The cost of steel, aluminum, copper, and other metals have increased manufacturing and construction costs, while the prices of key components, such as transformers, switchgear and smart meters, continue to rise. As a result, both conventional and renewable projects are under increasing financial pressure. In addition, due to costs, trade disputes and increased demand, lead times are becoming increasingly stretched. Now it can take two to four years to order and receive a transformer. Semiconductor shortages are slowing smart grid progress, and high copper and aluminum prices are dampening cable orders. Add shipping issues, and the result is missed opportunities, delayed fulfillment, and decreased customer satisfaction. Procurement is placed in a unique position to manage the risks and uncertainties it is currently facing. Through disciplined contracting, dedicated monitoring teams, differentiated supply bases, and the use of predictive analytics, procurement enables utility operations to anticipate disruptions rather than react to them. Leading organizations are taking it one step further—establishing tax command centers that integrate real-time analytics and multidisciplinary decision-making to identify, assess, and mitigate supply chain risks before they impact T&D operations.
Another utility cost is weather-related damage. The US has faced more than 40 billion in climate disasters in the past few years, with more than $115 billion in damages in 2025 alone. This damage not only disrupts deliveries to customers, but also disrupts supply chains, drives up costs, and delays critical projects. The effects of these disasters are lasting for years. Procurement can embed resilience to climate-driven disasters by establishing regional stockpiles, negotiating large-capacity agreements and mutual aid contracts, and stress-testing providers to continue recovery preparedness. As a gateway to supply chain sustainability, procurement can help utilities reduce their environmental footprint and avoid contributing to climate-driven disasters. Almost all emissions fall under Scope 3, which are produced by upstream suppliers or downstream partners. Procurement teams can partner directly with suppliers to track, manage, and help reduce these emissions. It can also focus on responsible sourcing to reduce environmental impacts while driving economic value.
Despite its strengths, procurement has historically been considered a weak point in many services. Compared to other industries, this sector is lagging behind in procurement maturity, and the results are expensive. Without a strategic approach, projects can run 20-40% over budget, forcing resources into a difficult choice: absorb excess or delay important improvements. To address the industry’s growing challenges, utilities must elevate procurement from a transactional function to a strategic powerhouse. Here are some top actions that can close the gap: 1. Build strong partnerships with your business partners: Position procurement as an enabler of reliability and performance growth—not a cost watchdog. Embed procurement early in planning cycles, align division strategies with long-term operational and capital plans, and deliver business-critical collaborative outcomes. 2. Diversify suppliers to build resilience: Lock in contracts for durable goods and identify alternative sources of critical parts and materials. Then expand these efforts to find other suppliers for as many procurement portfolios as possible. Some suppliers offer backup during supply chain disruptions and can also provide financial savings. In addition, expand regional manufacturing partnerships, and explore building partnerships with key sectors. 3. Develop procurement talent: Build a skilled procurement team through targeted hiring, continuous professional development, and specialized consultant partnerships. 4. Embrace procurement and analytics: Predictive data enables smarter long-range budgeting, more accurate case planning, and stronger recovery strategies. 5. Create a more efficient purchasing center: A central hub of spend data, supplier status, and project milestones streamlines decision-making and speeds execution. 6. Improve relationships with suppliers: Treat suppliers as strategic partners and customers, allowing the team to unlock better value, encourage innovation, and strengthen sustainability and sustainability practices.
Utilities are operating under unprecedented, interconnected pressures—and procurement is now at the center of how those pressures are managed. When proposed as a core capacity builder, procurement becomes a force for multiplying T&D operations, allowing resources to meet immediate demand, secure critical supplies, and reduce the risk of costly disruptions before they arrive on site. For an in-depth look at how procurement can transform resource operations in an era of disruption, check out ProcureAbility’s latest information on: “Charged for Change: Transforming Procurement in an Era of Disruption.” –Conrad Snover is the CEO at ProcureAbility. Snover Conrad leads the firm’s vision and growth with a focus on customer success, talent and culture, and continuous innovation in procurement and supply chain services. He is deeply committed and experienced in helping global organizations transform procurement from a transactional function to a strategic, business value driver.
