Confidence and trust

Digi-Key Electronics’ president, Dave Doherty, reveals his predictions for the electronics supply chain in 2022

If the past two years have taught us anything, it’s that the market can be more unpredictable than anyone ever thought. Using the past as a predictor of the future, the 35-years I’ve spent in the electronic component distribution industry have taught me that this current capacity and supply crunch will likely not last as long as expected. 

We know how difficult it is for customers to source some high-demand parts they need right now and in some cases this has led to increased order volume. However, I believe things will start returning to realistic levels in 2022 as customers experience more breathing room.

I’ve also found that suppliers often overachieve and find new, creative ways to increase their supply. I’m hopeful that 2022 will see an uptick in supply and trust our partners are doing everything in their power to meet demand.

Digi-Key has significantly increased its capital infrastructure investments in recent years as we’ve scaled our capacity to match skyrocketing demand, and those investments will continue to scale as business grows. 

These include: Product Distribution Centre expansion in Minnesota; more robust and predictive web search functionality; higher inventory levels and increased warehouse automation—all ultimately benefitting customers by providing an easy and efficient research, shopping and delivery experience. 

The impact of the last two years on Digi-Key and industry as a whole, has been increased confidence and trust gained in each other and our ability to meet a crisis head-on—ultimately benefitting customers.