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'Industry is in a state of chaos': Supply chain issues could cause delays for new construction in Nashville

Construction
Posted at 4:59 PM, May 01, 2023

NASHVILLE, Tenn. (WTVF) — In a city where it seems like the ground is always churning, the only thing that may slow down Nashville's current construction boom, is the ability to power it all once construction is done.

"The industry is in a state of chaos," said David McGowan, president of Regent Homes, a major developer in Middle Tennessee.

He says he's had projects delayed all across Middle Tennessee, due to the availability of a type of transformer.

"We’re waiting on the single phase power where they step it down to be able to feed individual apartments," said McGowan. "We have about 25 people ready to move in June."

Without that single piece of equipment, developers are often forced to wait.

"They cannot give us a guaranteed date when we will have the transformers. We have to notify the customers that are planning to move it that we’re held up basically because of power," explained McGowan.

In fact, NES has sent out letters to several area developers warning them about delays. According to an NES spokesperson, their supply chain issues include transformers, poles and meters. Jack Baxter, vice president of Power System Operations for NES, said the supply chain problems began with the pandemic.

"Part of it is labor shortage, part of it is raw material supply on their part," said Baxter.

The March 2020 tornado and subsequent strong storms have only made it worse, depleting their reserves.

"We just ask that everybody be patient with us. It’s not just a Nashville Electric Service problem. It’s a utility problem and really a developer problem nationwide," said Baxter.

But NES is working on solutions between literally digging up unused transformers for stalled construction projects to digging back to an old solution from the past. At another Regent Homes property, NES worked out a deal to erect a temporary transformer on a pole.

"That was to go back to a pole-mounted transformer — just like you would see in subdivisions built back in the 30s and the 50s," explained McGowan.

The temporary pole, which will be replaced by an underground transformer when they become available, could also be an answer for Regent's apartment complex under construction in Cane Ridge.

"We do everything we can to meet the demand that the customers are putting on us in Nashville," said McGowan.

NES says this nationwide supply chain issue may not let up anytime soon. Until then, you may see a lot of construction equipment grind to a halt.

That being said, NES insists they will keep a stockpile in place just in case there's another major storm, so that power outages can be fixed as quickly as possible and customers aren't left in the dark for long stretches of time.


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