Q&A with NewPower Worldwide
Key Highlights
“Supply Chain Connect has compiled sentiment and insight from a range of distribution leaders across the electronic component and semiconductor industries to deliver an informative outlook for 2026. From investment strategies to regional trends, tariff navigation and more, Distribution Outlook 2026 covers everything industry leaders are currently facing—as well as what they expect to see in the year ahead and beyond.”
What do you see as the greatest opportunity for distributors this year — and the biggest risk to growth?
Carleton Dufoe | Chief Executive Officer
The greatest opportunity for distributors in 2026 lies in delivering value well beyond traditional pick and ship distribution. As customers look for supply chain assurance, inventory optimization, and cost efficiency, the distributors that pair creative, data driven solutions with broad market coverage — rather than chasing a single hot sector — will lead. NewPower is leaning into this by combining global reach, advanced analytics, and value added services to help customers navigate complexity and unlock working capital and continuity benefits across many different end markets.
The biggest risk is twofold. First, there is the danger of overreliance on any one trend, particularly the rapidly expanding AI segment, where market corrections or consolidation could create temporary headwinds. Second, the more unpredictable threats — geopolitical shocks, wars, trade disputes, or OEM specific disruptions like those seen recently with Nexperia — can reshape supply chains overnight and are largely outside any distributor’s direct control. NewPower mitigates these risks through a diversified customer and end market portfolio and a suite of value added services, from kitting and inventory management to surplus reduction, allowing rapid adjustment to shifting conditions while continuing to deliver stability and measurable results for customers.
In your view, what will separate successful distributors from the rest by 2030?
By 2030, the line between franchised and independent distribution, which began to blur a decade ago, has effectively disappeared. Customers now control their own destinies and are taking, or about to take, significant measures to manage their supply chains as effectively as possible. The distributors who will succeed are those who evolve alongside their customers — providing measurable value through adaptability, transparency, and strategic partnership.
At NewPower, we are already embracing this new model by building long-term relationships founded on trust, leveraging EMPOWER™ for deep data intelligence, and offering global inventory programs that help our customers navigate uncertainty with confidence. Distributors that evolve with their customers to become true collaborators — anticipating needs, delivering customized solutions, and enhancing supply chain control — will define success and lead the distribution industry in the coming decade.
How would you describe your business outlook for 2026 — bullish, cautious, or uncertain — and what key factors are driving that sentiment?
Matthew Fonstein | Chief Trade Officer
Our outlook for 2026 is bullish with measured optimism. The surge in AI and Artificial Intelligence–driven applications, especially high-performance computing, continues to fuel strong global demand for electronic components, supported by robust growth in cloud infrastructure, automotive electrification, and industrial automation.
At the same time, we remain mindful of macroeconomic volatility, geopolitical tensions, and emerging trade restrictions that could add to supply chain complexity. The key is balance — maintaining confidence in long-term AI and broader technology growth while staying adaptable to disruption. NewPower’s global network, real-time market intelligence, and customer-first execution give us the strength and agility to perform in both favorable and uncertain conditions, positioning us to capture the upside of AI and Artificial Intelligence–driven demand while actively managing risk.
How are current or potential tariffs and trade shifts shaping your sourcing, pricing, or customer strategy heading into 2026?
Mark Goh | Vice President, Trade
At NewPower, agility and diversification continue to define our sourcing and customer strategy as we head into 2026. Global trade conditions remain fluid, with evolving tariffs and regional policy changes influencing pricing and supply dynamics, so we have focused on strengthening supplier relationships, diversifying our sourcing base, and maintaining a flexible structure that can adapt quickly to shifting trade landscapes.
Our proprietary EMPOWER™ technology enhances this adaptability by providing real-time market intelligence, pricing visibility, and predictive analytics that help us anticipate changes before they impact our customers. EMPOWER™ plugs directly into our customers’ operating systems, our suppliers’ platforms, and the sophisticated systems used by our transportation and logistics providers, enabling fast, accurate data exchange and reducing errors. This deep integration, combined with real-time visibility into global routing options, allows us to navigate around tariffs, congestion, and other logistical challenges — often avoiding or significantly reducing their impact — while ensuring continuity of supply, pricing stability, and a consistently higher level of customer support across all markets.
