Tech Data UK boss: 'Economic challenges are coming but we are in a good space'

David Watts opens up to CRN about why he doesn't believe the naysayers when it comes to economic doom and gloom

Tech Data is well positioned to weather any potential fallout from the current global economic outlook, according to UK boss David Watts.

Analysts have predicted that a combination of slowing economic growth in China, as well as its trade war with the US, combined with Brexit uncertainty could bring tough times for the tech community.

Speaking to CRN at the distributor's annual Tech Data Live partner event, the exec said he is sceptical that the severity of economic downturn being predicted will happen.

"Are there global challenges? 100 per cent. But if you look at our results from last quarter, globally, we are in really good shape," Watts (pictured) said.

"The reason is that, firstly, we've been very focused on transforming and strengthening our portfolio and building the tools and support for our customers to develop their business around [next-generation solutions].

"Secondly, through the Avnet purchase, we've got a much bigger global footprint and that means if times are tough in North America, that most of our businesses is not in North America; if times are tough in Europe, not all our business is in Europe either.

"[The economic challenges] are really valid. But I don't think we're in a bad space at all. We're as successful as we've ever been because we've got a strategy that, to a certain extent, is built around making us a more solid business in the marketplace during tough times."

The distie has worked through recessions before and Watts is confident in its customers' abilities to weather such scenarios successfully.

"Our customers have always done very well during tough times; we know as we've been through a couple of recessions before," he explained.

"SMB - which is a big focus for us globally - has always weathered recessions and the number of customers that we work with that go bust during a recession is as low.

"That's partly because they get good financial support from distributors like us, but also because of events like this, where we help them move outside their traditional markets, so when one market is down, they have somewhere else to go."