At a recent executive event hosted by TTI at the EDS Leadership Summit, delegates gathered early to hear an unvarnished assessment of the global economy and TTI’s position within it.
Mike Morton, Chief Executive Officer of TTI, addressed attendees with a confident outlook on the company’s future, citing its people as a key competitive strength. He said: “One of the things I feel very, very good about in our company is the people. Between current leaders and those in our succession plans, we’ve got the leadership of our company for the next two decades already here. That is one of our great strengths.”
Morton provided a snapshot of TTI’s scale: “We are an $8 billion company now. We have over a million customers. We also employ 9,200 people globally.”
A major contributor to TTI’s growth has been its early investment in automated inventory management programmes and customer forecasting. “That accounts for over 40% of our business,” Morton noted.
With a growing need to store and distribute components efficiently, TTI operates 18 warehouses worldwide, including six major distribution centres and 12 regional warehouses. In North America alone, the company has seven proximity warehouses servicing Mexico, resulting in approximately 4 million square feet of storage space globally.
Morton shared insights on business segment performance. Globally, EMS remained the largest segment, followed by industrial, aerospace, and transportation. However, he noted regional variations: “If we look at the Americas alone, aerospace and defence would represent over 30% of the business.”
On product categories, connectors lead, followed by passives and semiconductors. Morton reported strong booking trends across all regions for the first four months of the year: “In the Americas, IP&E is up over 8%, our semiconductor business nearly 16%, and we’re seeing over 15% year-on-year growth overall.
“All the geographies are experiencing very positive bookings compared to the same period last year. That’s absolutely fantastic.
“Our company is now the third largest distributor in the Americas, with sales reaching $4.3 billion,” he said. “We now represent 15% of the market share for all component types in the Americas.”
Morton presented an internal analysis that consolidated IP&E categories across all entities, which showed TTI holding a 26% share of the $3.5 billion IP&E market. He elaborated: “In passives, our companies represent over 40% market share, in interconnect 30%, and in power and batteries – driven largely by the Sager business – nearly 26%. We round it out with electromechanical components at around 11%.”
The global economic landscape in 2025
Talk then turned to the global economic environment, challenging narratives of “doom and gloom” while providing critical insights for businesses navigating an increasingly complex economic landscape.
Alex Chausovsky, Director of Analytics and Consulting at Bundy Group set the stage with a high-level view of the global economy in 2025. He highlighted that the United States remained the dominant economic force.
“The United States continues to dominate global economic activity,” he said, pointing out that its economy stood at $30 trillion in 2025.
By contrast, China, despite decades of rapid growth, still lagged significantly behind. “In 2025, China was about $20 trillion,” Chausovsky noted. “Despite multiple decades of double-digit growth, the Chinese economy is still about a third smaller than that of the US.” He added that China faced several structural challenges, including demographic decline and ongoing government interference in business. “It’s not likely that the Chinese economy is going to overtake the United States economy anytime soon – and in my opinion, probably not for the foreseeable future.”
A historical overview of global economic activity since 1980 illustrated that the US has preserved its share of global GDP – approximately 25% – despite decades of shifting market dynamics. After a dip during the 2008–2009 financial crisis, the US has steadily regained market share over the past 15 years, reinforcing its position as a reliable base for growth and innovation, in Chausovsky’s opinion. By contrast, Europe’s share of global economic activity fell from around 28% in 1980 to approximately 17% in 2024. Chausovsky attributed this decline to sluggish policymaking and the challenges of coordinating among numerous EU member states.
Japan also saw a sharp reduction in its global economic influence, falling from a peak of 18% in the 1990s to just 4% today. These long-term trends, he argued, underscore the impact of domestic policy decisions on national competitiveness.
China, meanwhile, emerged as the primary beneficiary of economic shifts elsewhere. Its share of global GDP rose to 17% in recent years, but signs of deceleration have emerged post-COVID. The Chinese government’s strict pandemic policies, combined with a lack of domestic consumption rebound, contributed to a downward trend in economic momentum. Instead of pursuing a consumption-led growth model akin to the US or EU, China appeared to double down on production and export-led strategies.
This strategic pivot was made clear through Chinese central bank lending trends. In the years leading up to the pandemic, Chinese real estate development received the bulk of financial support. Post-2020, however, loans increasingly flowed to the industrial sector, fuelling overcapacity and driving export growth. In 2023 alone, Chinese exports grew by 10%, far outpacing the flat trade volumes between other global regions. Key product categories – such as electric vehicles, solar panels, and industrial steel – saw export increases of more than 100% year-over-year, with many goods reportedly sold below cost to gain market share abroad.
The evolving use of tariffs
From a geopolitical standpoint, Chausovsky highlighted the evolving use of tariffs by the US government. Unlike the targeted trade policies implemented under President Trump’s first term, current US strategy employs tariffs as a broader geopolitical tool, aimed not only at addressing trade deficits but also at influencing national security concerns and market access.
Tariffs are no longer simply economic tools but have become geopolitical levers. The US electronics industry, he noted, was especially vulnerable due to its dependency on certain critical raw materials. “Gallium and germanium, for example, are essential for telecommunications and semiconductor production,” Chausovsky said. “In the case of gallium, 97% is produced in China. That’s a major supply chain risk that we have to remain vigilant about.”
Chausovsky acknowledged the recent temporary easing of trade tensions, pointing to a 90-day pause in escalating tariffs as a positive sign. “I was actually quite relieved to see both parties willing to play ball and have some negotiations,” he stated.
He stressed the significance of the next six to eight weeks, suggesting that new trade agreements with countries such as India, Vietnam, and EU member states could offer the US modest, though politically useful, concessions. However, he tempered expectations, noting that: “The scale of those concessions will likely be smaller than most people expect.”
Chausovsky called for vigilance and flexibility: “Once we get clarity on tariffs, businesses can start to adapt, whether through surcharges or other short-term measures. It was the uncertainty earlier this year that dragged on economic activity. Now, I think we’re moving towards a more stable footing.”
He emphasised the importance of forward planning and strategic flexibility, urging companies to adopt a proactive approach rather than a reactive one.
“From a strategic perspective, I think it’s important to have a lot of scenario planning going on right now,” Chausovsky advised. He stressed that these plans should be in place immediately, so companies are not caught off guard when developments occur.
On a tactical level, Chausovsky recommended refocusing on operational discipline. He noted that many businesses may have become lax in their practices. “We kind of got away from the prudent action of asking ourselves, are we running the most productive, efficient and human business possible?”
He encouraged companies to seek out inefficiencies and streamline operations. “Look for opportunities to identify and remove unnecessary steps in your process to increase efficiency and gain productivity,” he said, noting that such gains would be essential for growth in the current environment. “Productivity gains this year are the way that you actually achieve your growth target. It’s not going to be because the market very easily gives it to you.”
His final recommendation was clear: invest in keeping people engaged and satisfied. “Invest for employee retention and make sure that you’re positioning yourself for long-term success by keeping your number one asset happy.”
