KEY POINTS
- Generac to hire 400 workers as demand for standby generators surges after hurricanes.
- Increasing power outages and storm activity drive sales of residential and commercial generators.
- Generac is expanding its manufacturing network with new facilities in Wisconsin and South Carolina.
Due to the increased demand for generators brought on by Hurricanes Milton and Helene, Generac Power Systems has expanded its production capacity and added 400 new employees to its factories in South Carolina and Wisconsin.
Also, because of the increased frequency of storms and power outages in the United States, the Wisconsin-based generator manufacturer is witnessing a significant increase in sales of its backup and portable generators.
Hiring surge driven by storm-related demand
According to Aaron Jagdfeld, CEO of Generac, every significant storm adds between $50 million and $100 million to sales, and the most recent hurricanes have significantly raised demand for residential standby units, especially in hurricane-affected states like Florida, Georgia, and Texas.
Jagdfeld stated, “We expect a significant rise in sales over the next 6 to 18 months,” attributing this surge in demand to the continued effects of climate change, which include a worsening U.S. electrical infrastructure and more severe storms.
He underlined that although demand for generators occasionally increases with each storm, the industry’s overall development trend is still robust.
400 more employees, mostly in production positions, are part of Generac’s employment goal. The company’s expanding network of plants, including the South Carolina site that was damaged during Hurricane Helene, will be supported by these new hires.
Parts of the factory flooded, and the company’s activities in South Carolina were interrupted by a five-day power outage. Nonetheless, Generac’s facilities in Wisconsin were used to continue production.
Expansion of manufacturing capabilities
Additionally, Generac is building new factories to increase its manufacturing footprint. The company is currently building a plant in Wisconsin that will concentrate on large commercial and industrial generators, and it just launched a plant in South Carolina to make standby generators for home usage.
According to Reuters, this increase demonstrates the growing need for dependable power solutions in the face of deteriorating weather patterns and an unstable national electrical grid.
Generator sales are increasing due to a combination of storm-induced demand and shifting consumer behavior. As more Americans depend on electronic devices for communication and pharmaceuticals that need to be refrigerated, standby power becomes crucial during extended outages.
The company’s products are now more important than ever because the first nine months of 2024 saw 1.2 billion outage hours in the U.S., the most since Generac began monitoring power quality in 2010.
Generac Holdings, Generac’s parent business, has also benefited, as evidenced by the two-year high of its shares. Investors are intently observing how the increased demand from disasters will affect future performance as the company prepares to announce its third-quarter earnings on October 31.
