DigiKey at EDS Leadership Summit 2025

Reflecting on the state of the industry, Slater observed that DigiKey had emerged from the recent down cycle with renewed momentum: “We’re seeing a lot of tailwinds, and just more activity than we’ve seen in a few years,” he said. “Customers are engaged. They’re doing designs.”

That renewed activity has come alongside a sharp expansion in supplier engagement. DigiKey added over 100 new suppliers in Q1 2025 alone – a move aimed at strengthening its role as a comprehensive, one-stop shop for customers.

“We listen to our customers,” Slater said. “With so many new products and technologies coming out, it’s critical to offer breadth. Our growing supplier base ensures we can meet evolving needs.”

In an increasingly competitive distribution landscape, DigiKey is placing its bets on digital tools and an enhanced web experience to set itself apart. According to Slater, the company sees its website as the key interface for engineers and procurement professionals alike.

AI has played a growing role in that effort. DigiKey is already using AI across its operations – including marketing and website functionality – and is planning further investment to refine and personalise the customer journey.

“We’re just scratching the surface, but there’s a lot in the works,” Slater noted.

In terms of market dynamics, DigiKey is seeing strong performance in several key sectors. Wireless and IoT continue to show robust growth, alongside energy-related applications. Slater also highlighted a rebound in the industrial segment – traditionally DigiKey’s core customer base – after several years of softness.

Tariffs and geopolitical trade changes remain a concern for many in the supply chain, and Slater acknowledged that DigiKey is responding by enhancing transparency.

“Customers want to be informed and make decisions based on data,” he said. “We’re using our website to make it clear which parts are affected by tariffs, and we’re leveraging our Free Trade Zone in Thief River Falls to ease the burden.”

Looking ahead over the next 12 to 18 months, DigiKey’s top priority is expanding its customer base. The company currently serves nearly one million customers but sees considerable untapped potential.