Waldom Electronics’ CEO, Don Akery, predicts 2026 will reward businesses that balance pricing pressures, manage geopolitical risks and harness emerging technologies.
As the electronics industry approaches 2026, uncertainty once again defines the outlook. The key challenge lies not in recognizing that instability exists, but in identifying where it will originate, whether from pricing and inflation, geopolitical conflict, workforce challenges, supply allocation, AI disruption or cybersecurity risks.
Two primary sources of uncertainty appear most likely to shape the coming year. The first is the potential for targeted component shortages across select product categories. While not expected to reach the scale of post-pandemic disruptions, these shortages could be significant within specific sectors such as aerospace, defense and AI. Sustained demand in these areas, combined with limited new capacity investments during the recovery period, may place renewed pressure on supply chains.
The second is continued pricing volatility tied to US tariff policy. Persistent uncertainty about potential changes in tariffs is creating a more cautious investment climate. Many customers and distributors are delaying procurement and inventory decisions until market conditions become clearer, which in turn amplifies short-term fluctuations.
Despite these challenges, 2026 still holds promise as a growth year, likely in the high single-digit to mid double-digit range. However, growth will be uneven, influenced by shifts in global demand, policy decisions and evolving technology trends. Companies that maintain flexibility, manage inventory strategically, and strengthen collaboration across the supply chain will be best positioned to turn uncertainty into opportunity.
