A number of recent trends in our commercial systems have created absurd results. Supply train disruptions, inflation, or in many cases corporate greed have distorted pricing in just about every sector of the economy. We are awash in examples of oddly high prices, shrinkflation, or outright price gouging.
In my role of head engineer/maintenance supervisor for a small company I get to see these price increases first hand. I do much of the purchasing, from screws and valves, to large industrial transformers. I have also been on the other side of the fence, in manufacturing, and have a good idea of the real costs of things, what plastic and electronic bits and bobs cost to make at the factory.
We have seen a lot of price increases as of late, and much of that is to be expected… Inflation, increased labor costs, and just plain shortages in a world that is must less stable than a few years ago. But some price increases seem more than a bit out of line with all of that.
In many markets the industry has found ways to increase prices by regulating that only more complex, much more expensive products be used. My favorite example of this is circuit breakers… Circuit breakers had become commodity products, mass produced, available from multiple vendors, a mature technology that is priced accordingly, about $5 to $10 for a common single pole breaker. This means profit margins are fair, but certianly not something to get corporate sales excited.
Enter the AFI/GFI breaker or combination AFI breaker. The arc fault and ground fault interruptor breakers will trip when certain types of electrical faults occur beyond simple current overload. These breakers do offer significantly more protection, and for some time have been required in high risk areas, particularly bathrooms, kitchens, or outdoor locations, what are called damp locations in the code.
The industry has now successfully changed the electrical codes to require use of these breakers in all circuits in residential use, the entire house. The 2023 edition of the National Electric Code, section 210.12(B) requires these expensive AFI circuit breakers on nearly all newly installed 120V branch circuits. This does offer more protection, but at substantial cost. These breakers do not sell for $5 to $10, they sell for $50-$100. And while these breakers should be a bit more expensive, maybe 2 to 3 times, they should not be ten times more expensive!
And now you need all of your breakers, twenty or thirty of them in the average home to be AFI/GFI rather than a handful. The cost of filling your household circuit breaker panel just went from a few hundred dollars to a couple thousand. Need to build a house? Need to upgrade to a new load center when you need more power in an older home? Pay for it.
Yes, I used retail circuit breaker prices for the examples, it is harder to document wholesale prices with examples, you will find that the price increases are of the same magnitude from any source.
As mentioned, the AFI/GFCI breakers are a very good idea for some circuits in high risk areas. There are downsides beyond cost… These breakers are subject to nusiance trips and possibly leaving critical equipment without power, have a much shorter lifespan (despite industry claims to the contrary), and may not work well on long circuit runs.
Devices with inductive loads, usually larger electric motors can easily trip AFI/GFCI breakers, this includes equipment such as refrigerators, washing machines, and air conditioners. A tripped AFI/GFCI on your freezer? The loss of all that halibut from your last fishing trip would be a tough lesson in electrical reliability.
AFI only breakers would add the arc fault protection without some of the nusiance trip possibility of GFI, but the AFI/GFI or combination breakers are just about all you find available.
It is generally agreed that AFI/GFI breakers have a useful lifespan of 15 to 20 years, while traditional breakers have a useful lifespan of 30-40 years. Yes, half the lifespan, then buy a couple thousand dollars of breakers… Again. On top of that homeowners are routinely finding that some brands and product lines are failing in just a few years, adding even more to the bill when the electrcian arrives to troubleshoot a bad breaker.
Thus is becomes clear that circuit breakers are a case where the industry has found a way to turn a commodity product with mundane profits into a substantial money maker again. This was done through lobbying and modification of the National Electric Code which is enforced by nearly every building department in the country.
This regulatory strategy to increase profits has any number of examples I could use, from automotive regulations to construction, circuit breakers are just an easy example.
Price increases like these have a real effect beyond cursing when the electrician hands you his bill. This is happening across the board, resulting in much higher construction costs, higher home prices, higher rents, and housing shortages.
…and of course record corporate profits.
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