In an interview at electronica, DigiKey President Dave Doherty shared insights on the company’s journey through 2024 and its expectations for 2025.
Reflecting on the past year, Doherty acknowledged that while revenue figures had not reached memorable highs, DigiKey experienced a surge in customer engagements and shipments, a sign of growing demand for new product innovation.
This heightened activity was particularly notable in October, when the company recorded its highest-ever number of product shipments. DigiKey, he noted, views this growth in demand for design components as a positive trend, setting the company on a strong footing for future cycles.
Doherty further highlighted regional dynamics, explaining that while Asia-Pacific experienced a robust recovery following a significant downturn, EMEA (Europe, Middle East, and Africa) faced more challenges, particularly in terms of revenue. Despite this, he noted that design activities in EMEA were on the rise, indicating potential for future growth: “The America has been a little bit more stable over time, and while we’re concerned with the overall production revenue coming out of EMEA, we are very excited…about the design activity.”
Addressing inventory issues, Doherty acknowledged that while supply chain disruptions have improved, some challenges persist, especially within the semiconductor sector. He noted that overproduction of semiconductors had led to a backlog as demand softened, creating a ‘mix issue’ as DigiKey works to balance inventory to match demand patterns.
Doherty touched upon DigiKey’s engagement in high-growth sectors such as AI and automation, areas where the company continues to adapt its portfolio. Although AI adoption is concentrated in major data centres, Doherty foresees its expansion to Edge devices and microcontrollers. Automation and Control is DigiKey’s fastest-growing segment, fuelled by integration of discrete components into sensors and PLCs. The company has responded by onboarding over 400 suppliers in this area, a strategic move Doherty described as a ‘win-win’ for customers and suppliers alike.
On the technology front, Doherty shared that DigiKey’s new distribution centre is fully operational, along with recent upgrades to its Oracle financial, CRM, and order management systems. He explained that these updates were part of DigiKey’s strategy to enhance digital agility.
These investments, he argued, allow DigiKey to maintain service quality while improving scalability, keeping costs manageable for customers.
Doherty also discussed DigiKey’s commitment to sustainability. The new distribution centre in Minnesota includes sustainable features such as LED lighting and energy-efficient conveyor systems. DigiKey has also embraced a ‘multi-ship consolidation’ approach, enabling it to bundle multiple customer orders into single shipments, reducing environmental impact.
Looking ahead to 2025, Doherty expressed cautious optimism, noting the industry’s resilient health and an expectation of gradual recovery in the first half of the year. DigiKey’s private ownership, he remarked, allows it to focus on long-term goals and customer needs rather than shareholder pressures. While acknowledging the uncertainty around revenue forecasts, Doherty observed: “I have not met a person at the show or throughout our industry that has anything but extreme optimism in the health of our industry long term.”
