• The increased estimated costs for new nuclear plants are due, in large part, to a fierce worldwide competition for power plant design and construction resources.
• This competition has led to double digit annual increases in the costs of key power plant commodities such as steel, copper, concrete, etc.
• The worldwide demand is straining the limited capacity of EPC (Engineering, Procurement and Construction) firms and equipment manufacturers.  For example, there are only two companies that have the qualified forging capacity for pressure vessels, steam generators and pressurizers for new nuclear plants – Japan Steel Works and Creusot Forge in France.
• The demand for heavy forgings will be significant because the nuclear industry will be waiting in line alongside the petrochemical industry and new refineries for the material.
• Two decades ago there were about 400 suppliers of nuclear plant components and 900 so-called nuclear stamp, or N-stamp, certifications from the American Society of Mechanical Engineers. Today there are fewer than 80 suppliers in the U.S. and fewer than 200 N-stamp certifications.
• The chairman of the Nuclear Regulatory Commission has said publicly (in early 2007) that it appears now there will be a great reliance on overseas companies to manufacture plant systems and components. He said that the NRC would need to inspect the quality of the manufacturing programs to ensure substandard materials or equipment don’t end up installed in plants. He also cautioned that it would take more time to inspect foreign-made components than it would to check quality control of U.S.-manufactured components.
• The limited number of manufacturers and suppliers could cause bottlenecks in construction if, as expected, there are multiple orders for new power plants in the U.S. and abroad.
• This means fewer bidders for work, higher prices, earlier payment schedules and longer delivery times.  Long lead times (six years or so) are expected for key plant components.
• The cost of on-site construction labor and skilled manufacturing labor also has escalated.
• There is no reason to expect that these supply constraints and bottlenecks will clear anytime in the foreseeable future.