High-voltage transmission is the grid's bottleneck
The guest argued that the biggest pinch point in US electrification is the high-voltage transmission grid, which requires massive reinvestment and favors specialized contractors and equipment providers.
The argument
The US grid has not been modernized since the 1970s and cannot handle the influx of new power generation. The guest identified high-voltage line construction and turbine servicing as key areas where massive contracts and backlogs will drive long-term earnings.
The thesis, stress-tested
✓ What validates it
- ✓Awarding of major high-voltage transmission contracts over the next two years
- ✓GE Vernova realizing revenue from its $80B service backlog
▸ Risks discussed
- ▸Severe shortage of skilled labor to execute grid construction
- ▸Regulatory and community pushback on transmission line routing
Hear it yourself
"It's not just labor, but it's transportation. It's protecting IP. It's doing customer service. It's lower lower, working capital cost. So when you put it all together, making here in The US now makes a lot more sense than it did twenty years ago. To what extent is it also a different mix of goods? It it's more advanced manufacturing. Right? Textile work is probably not coming home. Or But the the advanced manufacturing that we're talking about is a it's a completely different mix of goods that are being manufactured here. To what extent is is that true? That's that's true."
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