Expansion in the Works for Phoenix Contact.
I was in Harrisburg, PA last Friday to meet with Phoenix Contact executive team members Frank Stuehrenberg and Roland Bent as well as President of the US subsidiary Jack Nehlig as they announced a reorganization and investment. The company plans an expansion of its manufacturing operations and a 45,000 square-foot distribution center at the company's U.S. headquarters in Middletown. In addition, it is changing its business structure by expanding research and development as well as product management from its German headquarters into two Regional Centers of Competence--one in the US and one in China.
Stuehrenberg refers to the effort as one of moving to a "Trans National Corporation." He further elaborated in conversations with me the importance of creativity and innovation to the company. As the it becomes a larger company, management is concerned to maintain the spirit of a small, innovative and entrepreneurial company.
In the United States, the subsidiary is establishing the Americas Regional Business Unit responsible for research, engineering and development of new products for customers in North and South America. The existing U.S. sales operation will continue its growth, as will the now separate operations focusing on product manufacturing, logistics and central services. Jack Nehlig continues as president of Phoenix Contact, USA with vice presidents heading each of the units. Newly appointed Vice President David Skelton has assumed leadership of the Regional Center of Competence.
The current 28,000 square-foot manufacturing operations will expand to a total of 90,000 square-feet by 2008. This will accommodate the growth in product development as a result of the newly formed Americas Regional Business Unit.
Roland Bent said, "At a time when many companies are looking to locations outside the United States for additional engineering or manufacturing services, Phoenix Contact is increasing our investment in the United States. Instead of off-shoring we call this "in-shoring." Bent noted, "Our continuing excellence in innovation allows us to offer even better products and services for the very important American market.
Phoenix Contact is known as one of the German "mittlestand" companies-thet is, privately held companies of medium size. However, over the past ten years it has realized the fruits of its investment in networking and automation and grown significantly. With global sales of over 720 million Euro (almost $1 billion) and employment of over 7,000, the company is pushing the envelop of the mittlestand definition. Stuehrenberg took pains to note that Phoenix Contact management still tries to continue the innovation and entrepreneurial spirit of the founders. The Regional Centers of Competence are an organizational move designed to maintain those characteristics of the smaller companies.
8:07:11 AM 
|
