Major manufacturer of backup power generation products Generac Holdings Inc., based out of Waukesha, Wisconsin, is running low on portable backup generators after Hurricanes Helene and Milton knocked out power for millions of Americans. (Related: Hurricane Milton reached CAT 5 status – the last time there was a hurricane this strong barreling towards Florida was pre-Civil War.)
Many of the company's portable products sold out after Helene tore through the U.S., according to Generac Chief Executive Officer Aaron Jagdfeld. "The more outages that are occurring and the more they are happening, then the more interest grows in our product," Jagdfeld said during an interview.
The company's biggest challenge was getting portable generator products on shelves in between storms. "If it's not there yet, it probably isn't going to get there until a couple days after landfall," Jagdfeld said.
Generac, one of the biggest U.S. generator companies, also sells a home standby generator that is not portable.
Generac adds more workers to factories as demand for generators surges
In reaction to the surging demand for power generators, Generac announced that it has hired 400 more workers to its plants in Wisconsin and South Carolina.
Jagdfeld announced that, while the new hires are trained and get up to speed, Generac's more experienced employees will temporarily be working longer shifts.
He noted that demand for portable power generators typically peaks during the lead-up to hurricanes and in their immediate aftermath as homeowners struggle with blackouts caused by damage to power infrastructure. Basic portable generator units retail at about $600 minimum, while the average price for all portables is at around $1,000.
The company is expecting demand for its higher-quality generators to increase in the weeks and months after natural disasters. These higher-quality products retail at about $5,000, not including installation fees that range between $5,000 and $7,000.
"We've put a lot of portable generators into the market this year," said Jagdfeld. "It's probably been one of the busier years for portable generators that we've seen in recent memory. That goes with the territory."
The company's stock hit a 52-week high as investors bet the company will see a big boost in sales for its backup power systems from multiple hurricane strikes in the United States. Shares are well above the $500 peak it saw during early 2020 when the stock traded like a "penny stock" amid pandemic mania.
Jagdfeld noted that the 2024 hurricane season is expected to run through November, noting how Hurricane Sandy in 2021 hit the U.S. around Halloween.
"There's still a lot of season left – we've got a good six weeks ahead of us," Jagdfeld said. "We'll see what happens next."
Visit Electricity.news for more stories about how natural disasters in the U.S. have devastated power grids.
Watch this clip from Fox Business discussing how Hurricane Milton has left over three million people in Florida without power.
This video is from the Newsclips channel at Brighteon.com.
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