This invention relates to a transformer and more particularly, to a system and method for making a transformer utilizing dynamic magnetic compaction. A coil is placed in a conductive container, and a conductive powder material, such as ferrite, is placed in the container and surrounds the coil and the turns of the coil. A power supply energizes a capacitor which subsequently provides a high energizing current to a second, energizing coil within which the container, material and inner coil are situated, thereby causing the container, powder materials and coil to be compacted to provide an electrical component, such as a transformer, motor, commutator, rotor or choke.