At the EDS Leadership Summit in Las Vegas, optimism about the electronics market was unmistakable – nowhere more so than in the outlook shared by Maryellen Stack, Vice President of Marketing Communications and e-commerce at Sager Electronics.
In conversation with Paige Hookway, Stack described a market that has not only met expectations in 2026, but decisively exceeded them, even as customers and distributors alike navigate persistent tariff uncertainty and rising supplier costs.
Stack characterised the current environment in one word: bullish. Building on strong momentum seen last year, she noted that 2026 has delivered growth that has “exceeded all expectations,” with sustained demand across key segments. What began as an encouraging uptick has transformed into powerful, continuing momentum that is reshaping strategies across the supply chain.
AI, data centres, and sector strength
When asked about the most significant trends driving the market, Stack pointed immediately to artificial intelligence and data centres – themes that have dominated industry discussions at this year’s summit. For Sager Electronics, these trends are closely tied to its strengths in power strategy and thermal management, areas that are critical to supporting the high-performance computing and infrastructure requirements of AI and data centre applications.
Beyond these headline growth areas, Stack highlighted industrial and medical sectors as additional engines of expansion. These end markets, where Sager has long maintained a strong presence, continue to show robust demand, reinforcing the company’s diversified growth story.
Navigating tariffs and shifting trade policy
While growth is strong, uncertainty remains a feature of the landscape – particularly around tariffs and trade policy. What has changed, however, is how customers are responding. According to Stack, the initial phase of tariff implementation saw many companies simply “roll with it.” Today, customers are more assertive and analytical. They are demanding transparency, seeking to understand not just the immediate impact of tariffs but the underlying strategies of both distributors and suppliers.
Bookings at Sager are, in Stack’s words, “through the roof,” signalling vigorous activity and strong demand. Yet customers are pairing this activity with a higher degree of procurement intelligence. Concerns over tariffs and supplier price increases are prompting more thoughtful, data-driven sourcing decisions as procurement teams work to balance cost, risk, and continuity of supply.
From excess inventory to strategic rebuild
The conversation also touched on the post-pandemic inventory cycle. After years marked by over-ordering and excess stock, procurement teams appear to have reached a more stable footing. Stack reported that lead times have largely stabilised, and customers now feel confident about their inventory positions.
For Sager, this stability is an opportunity: “It’s time to rebuild,” Stack said, noting that the company has been refining its inventory strategies to better align with customer needs. The focus now is on rebuilding stock intelligently, ensuring that customers can rely on Sager for both availability and flexibility as demand continues to grow.
Margin pressures and the road ahead
Looking to the remainder of 2026, Stack identified margin management as a key challenge. As suppliers implement price increases, distributors must carefully balance their own cost structures while remaining fair and transparent with customers.
“We are definitely watching margins,” she said, emphasising the need to manage the impact of higher input costs while preserving the strong growth the company is currently experiencing. Sager’s aim is to pass along necessary increases fairly and as transparently as customers expect, maintaining trust even as conditions evolve.
Despite these challenges, Stack’s outlook for the rest of the year remains decidedly positive. If current momentum holds, she anticipates continued growth and a healthy demand environment across Sager’s core markets.
A call for partnership and open communication
Asked what advice she would offer customers for the rest of the year, Stack’s message was simple but pointed: leverage your distribution partners. She encouraged customers to make full use of the distribution channel – including Sager and its sister companies within the TTI family, such as Mouser – for support, guidance, and solutions.
Keeping communication open is critical, she stressed. Distributors are there to help customers navigate complexity, manage risk, and identify opportunities – whether in managing tariffs, securing supply, optimising inventory, or responding to rapid technological change.
