Phoenix Contact on course for long-term growth

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BLOMBERG, Germany, April 18, 2024 /PRNewswire/ -- At a recent press conference, CEO Frank Stührenberg took a look back at the company's 100th anniversary celebrations in 2023 and its sustained growth during this time. Looking ahead to 2024, he spoke about revenue growth and the planned investments for international site development.

"Last year was very special for us. Together, we have achieved a great deal throughout the 100-year history of our company, and have remained true to the values and culture of our family business despite our growth and development," states Frank Stührenberg. Numerous events were held around the world to celebrate this anniversary together with all employees. However, the focus was also on the future: In 2023, Phoenix Contact hired 199 young people – the highest number of trainees and dual students in the company's history. "Training is a high priority for us, and always has been," emphasizes Stührenberg. Projects for the future were also initiated worldwide in order to further promote sustainability. Phoenix Contact was awarded Ecovadis Gold Status in 2023 for its wide-ranging measures. The company is thus among the top five percent of companies in the electronics industry. The use of bio-based materials and the restructuring of transport routes and methods, for example, contribute to the company's Product Environmental Footprint.

A consolidation of growth became apparent over the course of 2023, with incoming orders declining due to high material inventories. This trend affected all major markets. Stührenberg emphasized the following point: "If we look at the last four years from 2020 to 2023, we have been able to achieve an average growth of 9.2 percent. This represents a growth of one billion euros over this period. It also means that our markets as well as our products and solutions for electrification and automation are the areas where we expect to see further investment in the future." In 2023, Phoenix Contact recorded a five percent fall in revenue to 3.4 billion euros. The company invested 300 million euros in buildings, machines, and digitalization.

Stührenberg does not expect a further decline in revenue for 2024. Since the beginning of the year, there have been signs of recovery, with incoming orders picking up, especially for terminal blocks. "We will continue our investments at the Blomberg site. We are planning to complete the extension to the existing logistics building for 2028." Phoenix Contact is investing a total of around 100 million euros in the fully automated logistics building that will provide an additional storage volume of 200,000 m³. Further investments are being made in Building 60, the energy-positive production building at the end of Flachsmarktstraße that is soon to be occupied by 400 employees. The investments for this project total 35 million euros.

Investments

For 2024, the company is planning to invest in the development of sites in Turkey and Mexico in particular. "From an international perspective, we will position our production even more broadly in order to shorten delivery routes for our products and solutions and therefore reduce possible disruptions in the supply chains," explains Stührenberg. In Turkey, Phoenix Contact will take over full control of the production joint venture Acel and will develop an 8,000 m² production site for up to 500 employees. In Querétaro, Mexico, a new building is currently being constructed for electronics and electromechanical production with up to 700 employees, representing an investment of 50 million euros by 2030.

Hannover Messe

"For us, the Hannover Messe continues to be a central and important event that enables us to engage with our customers from all over the world and present our new products to them," says Stührenberg, emphasizing the importance of the trade fair. "In addition, we are taking advantage of its proximity to our locations in Blomberg and Bad Pyrmont to give our 600 international guests an impression of our vision of the All Electric Society." With this in mind, the family-owned company is once again presenting new products at the trade fair that will drive forward the electrification of society. In particular, these include a controller for building automation, which, in its control cabinet format, can also be used in a domestic electrical distribution board. This can be used to control light, ventilation, and heating. A plug-in display facilitates commissioning and maintenance. In addition, various states of inputs and outputs, such as those for light control, can also be detected.

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SOURCE Phoenix Contact