Waldom Electronics’ CEO, Don Akery, argues the trend of distributors restocking is a positive indicator of stability ahead, with the general outlook for 2025 as cautiously optimistic.
Waldom is in a unique position as a master distributor selling exclusively to distributors, allowing us to see market trends earlier than most. When the market picks up, we’re often the first to feel it, and when things start to slow, we notice that as well. This year, we’ve seen encouraging signs, especially in the Americas and Asia-Pacific regions.
In the second half, third quarter and early fourth quarter, we have seen a pickup in our overall business, both in bookings and shipments. The two regions where we’ve seen the most growth are the Americas and Asia-Pacific. We expect Asia-Pacific to close 2024 up more than 25 per cent, while the Americas and EMEA are ending with mid to high single-digit growth. These regional gains suggest that the broader market is moving toward recovery, with demand stabilizing across global distribution channels.
Looking into 2025, early signs suggest that the market will continue to recover, with distributors gradually shifting from burning down excess stock to replenishing inventory. This restocking trend is a positive indicator of stability ahead. However, many distributors are still grappling with slow-moving and excess inventory, a challenge that remains central to the year ahead. They’re looking for ways to better manage this inventory to avoid overstock while staying prepared for rising demand.
The outlook for 2025 is cautiously optimistic, with growth anticipated across all regions. As the industry adapts to these shifts, the focus will likely be on balancing inventory management with market resilience, ensuring distributors are prepared to navigate both current challenges and emerging opportunities.