A16z analysts flag a 9% slide in US electrical equipment production

Prices are up 69% and AI is hungry for power, yet American factories are making less of the gear that delivers it The US wants to build an AI economy that runs on electricity. The country is making less of the equipment that moves that electricity around. According to analysis shared by a16z, US electrical equipment production has fallen 9% since 2019. Over the same stretch, prices for that equipment rose 69% and power demand from AI kept climbing. The a16z findings frame the decline as a capacity problem: US electrical equipment manufacturing capacity was down 9% since 2019 as of mid-2026. The contrast with other parts of the industrial economy is stark. Over the same period, communications equipment grew 110%. Semiconductors rose 77%. Computers were up 16%.

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