Supply Chain Connect | 2025 Distribution Outlook

Distributors gear up for growth. With supply chains stabilizing and technological advancements like AI, 5G, and automation driving innovation, industry leaders are focusing on strategy and adaptability to navigate the opportunities and challenges ahead. The following are excerpts taken from interviews with the experts at NewPower Worldwide for Supply Chain Connect’s 2025 Distribution Outlook.

 

How bullish/bearish are you for business in 2025 ,and why?

 Carleton Dufoe | Chief Executive Officer

In 2025, the electronic components distribution space offers significant opportunities, particularly in sectors driving technological innovation like AI, 5G/10G, automotive, industrial automation, oil and gas, and aerospace & defense. However, challenges such as economic uncertainty, geopolitical risks, and the ongoing volatility of supply chains could temper the optimism. Therefore, a moderately bullish stance is recommended, focusing on strategic partnerships, supply chain diversification, and adaptation to technological trends to mitigate potential risks.

 

What is the most significant risk you are facing in 2025?

Matt Fonstein | Chief Trading Officer

Supply chain disruptions due to geopolitical tensions, natural disasters, and cybersecurity are all significant areas of concern in 2025. To counter these challenges, NewPower provides robust supply chain solutions, leveraging its global presence and diverse product and solution offerings. By offering tailor-made solutions, excess mitigation, and cost-saving opportunities, NewPower will continue to help customers maintain control of their supply chains. This approach ensures stability amid disruptions, allowing all of our customers to remain focused on their goals. NewPower’s strategic partnerships and customized solutions are industry-leading and provide measurable value in all market conditions.

 

What are your expectations for North American revenue growth in CY2025?

Jon Henry | Vice President, Strategic Accounts

Revenue growth expectations for North America in 2025 are moderately optimistic, with a projected growth rate of 5% to 7% year-over-year. Key drivers include government investments, such as the CHIPS Act, which is expected to boost domestic semiconductor production and increase demand in the AI, oil and gas, automotive, aerospace & defense, and telecommunications sectors. Additionally, the continued adoption of 5G, IoT, AI, and electric vehicles will further drive demand for electronic components, contributing to overall market growth in the region.

 

What are your expectations for European market revenue growth in CY2025?

Martijn Fonkert | Vice President, Strategic Accounts

Revenue growth expectations for Europe in 2025 are projected to be moderately positive, with an anticipated growth rate of around 3% to 5% year-over-year. Key drivers include continued investment in green technology, such as electric vehicles and renewable energy, and digitalization trends like IoT, 5G, and AI. These advancements are expected to fuel demand for electronic components across automotive, industrial automation, and telecommunications industries. Additionally, government initiatives such as the European Green Deal and the Digital Decade will further boost demand in sustainability and digital infrastructure sectors.

 

Which end market segments (automotive, aviation, communications, computing, industrial, military, etc.) do you think will provide the strongest growth opportunities in 2025 and beyond?

Jeffrey Hong | General Manager, APAC

The automotive, aerospace & defense, telecommunications, industrial automation, and computing sectors are expected to provide the most substantial growth opportunities in 2025 and beyond. These segments are driven by technological advancements, regulatory pushes for sustainability, and increasing demand for automation, connectivity, and high-performance computing. Companies that can tap into these growing markets will be well-positioned for success in the years ahead.

 

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