Q&A with Newark

1. What is the most significant market shift you’re seeing in electronic component distribution in 2026? 

Richard Diaz, Vice President of Sales & Service, Newark: “The biggest shift we’re seeing in 2026 is the continued acceleration of AI and its impact on both demand and distribution. AI driven applications—especially in data centers, where advanced power architectures and high speed interconnects are critical— are driving growth and reshaping customer requirements. At the same time, AI is also changing how we operate as a distributor, with greater use of analytics, engineering design support and more coordinated supply chain execution.”

2. How are geopolitical tensions, trade policy changes and tariffs influencing your sourcing and regional strategies?

Richard Diaz, Vice President of Sales & Service, Newark: “Geopolitical tensions and tariff changes are reinforcing the need for regionalized support and tariff aware sourcing. We’re building flexibility into the supply chain by optimizing inventory by region and adjusting country of origin and routing strategies. This helps manage costs, reduce concentration risk and maintain reliable access to critical components.”

3. What capital or investment priorities are shaping your company’s growth strategy?

Richard Diaz, Vice President of Sales & Service, Newark: “Our capital priorities are focused on strengthening regional warehousing and logistics, aligned with continued onshoring and near shoring trends. This enables us to place inventory closer to customers and improve supply chain resilience. In parallel, we are investing in digital platforms that enhance visibility into inventory, demand and fulfillment for both customers and suppliers.”

4. How are customer expectations changing, and how is your company differentiating through service or digital capabilities? 

Richard Diaz, Vice President of Sales & Service, Newark: “Customers expect faster access to inventory, regional support and clear visibility across the supply chain. We differentiate through localized warehousing, centers of excellence and direct support across the U.S., Latin America and Canada, supported by digital capabilities such as eProcurement and supply chain automation that provide transparency across our regional warehouses.”

5. What are the biggest operational challenges you’re working to overcome right now?

Richard Diaz, Vice President of Sales & Service, Newark: “The biggest challenge remains turning accurate, timely demand signals into predictable supply. We’re addressing this through improved digital tools and closer collaboration with customers to better anticipate changing needs.”

6. Where do you see the most promising growth opportunities across end markets or regions?

Richard Diaz, Vice President of Sales & Service, Newark: “The Americas present strong growth opportunities, led by AI driven data center, power and commercial applications. Aerospace and defense also remain a key vertical with steady, long term demand.”