The electronics manufacturing industry has faced volatile shifts in recent years, from component shortages to sudden surpluses. 2025 brought its own unique set of challenges, testing supply chains and leadership in new ways. Navigating this landscape requires more than just operational efficiency; it requires strategic foresight.
Kenny McGee, CEO of Component Sense, has led the company through these shifting market conditions with a clear vision for the future. In a recent interview, he shared his top five reflections on leadership, sustainability, and the technological evolution of the supply chain. These insights offer a roadmap for any leader looking to build resilience in the electronic components market.
Here are the top 5 strategic learnings from Kenny McGee:
Kenny’s primary and most foundational learning centres on leadership and talent. In an industry as complex as electronics distribution, the strength of your human capital is the deciding factor between stagnation and growth. Kenny emphasises that leadership is not just about managing current operations, but about actively constructing a workforce capable of handling future challenges.
The focus at Component Sense has shifted toward injecting high-level industry expertise into the organisation. It is no longer enough to hire for the role; companies must hire for the vision.
"From a leadership perspective, we are very focused on building a team for the future. We are focused on bringing in more experienced people in the industry to build a bigger, stronger team."
As supply chains become more intricate, the "talent war" in the electronics sector is intensifying. Companies that prioritise veteran experience combined with adaptability will be best positioned to manage global logistics and market shifts.
A major insight from this year is the importance of client alignment. Speed and success come from working with partners who are culturally and operationally aligned.
Excess and obsolete (E&O) inventory remains a significant financial and environmental challenge for Original Equipment Manufacturers (OEMs) and Electronics Manufacturing Services (EMS) providers.
Trying to force a sustainability solution on a company that isn't ready is inefficient. Instead, Component Sense focuses on clients who are actively seeking to redistribute their excess stock.
"We learned that we need to be working with clients that are ready and really want to make a difference by pushing forward, improving, and redistributing their E&O," says Kenny. "As a company, we can move much faster by working with people who are aligned with us."
Efficiency in the circular economy depends on mutual intent. When both the distributor and the client are committed to responsible E&O management, the redistribution process accelerates, unlocking liquidity faster. For the broader electronics industry, this mindset helps reduce e-waste, increase supply chain efficiency, and ensure that unused components find new life in the manufacturing ecosystem.
Financial discipline emerged as another key learning. The post-pandemic boom in the electronics industry was followed by a sharp correction. Many companies faced a "dip" as demand normalised and inventory stockpiles bloated. This reflection highlights the cyclical nature of the semiconductor and component market.
Kenny offers a transparent look at the financial realities of this cycle, emphasising the importance of concrete planning. Recovery requires a roadmap. For Component Sense, the journey involves stabilising the ship to prepare for reinvestment.
"We were losing money during the dip that followed the boom in the industry, as were a lot of companies during this time," Kenny admits candidly. "Finally, in 2025, we got to break even, and our true goal for 2026 is to produce profit so that we can reinvest."
Rather than viewing profitability as an end goal, Kenny sees it as a foundation for innovation. For the industry, it reinforces the importance of financial health for long-term innovation.
While many organisations are drifting back toward traditional, profit-driven priorities, Kenny makes it clear that ESG (Environmental, Social, and Governance) remains “very, very important” to Component Sense. Sustainability is woven into everything Component Sense does, from responsible redistribution to ensuring that unused components are diverted from landfill and reintroduced into the supply chain where they’re needed most.
“We want to help people do the right thing and get excess stock into the hands of somebody that can use it.”
For Kenny, ESG is a part of Component Sense’s core business model. The goal is to ensure electronic components find a second life, preventing them from becoming e-waste. This approach is essential as e-waste becomes one of the fastest-growing environmental challenges worldwide.
The electronics industry is often at the forefront of hardware innovation, but Kenny urges leaders to also embrace software innovation—specifically AI. Kenny advises leaders to stop viewing AI as a novelty and start viewing it as a necessity for strategic speed.
"The changes in the last year with AI have been monumental. I think everybody should be looking at what AI can do for them."
“The pace at which AI can build products and services for us is incredible. Our developers are using it to assist them in building software in a few weeks that would have otherwise taken months and many more developers.”
AI is poised to revolutionise supply chain forecasting, risk management, and component sourcing. Leaders who educate themselves now will have a significant advantage in predictive capabilities over those who wait.
According to Kenny, the companies that will lead in the years ahead are those with strong leadership, aligned partnerships, financial discipline, a genuine commitment to sustainability, and the courage to embrace AI-driven innovation.
For Component Sense, these insights form the roadmap for building a stronger, more responsible, and future-ready business—one that continues to support the global electronics supply chain built on trust, sustainability, and progress. By redistributing excess stock, we help manufacturers reduce electronic waste, cut costs, and keep valuable components in circulation rather than in landfills.
Get in touch with our team to learn how you can transform excess into value.