Phoenix Contact expands in U.S., China

Phoenix Contact (www.phoenixcon.com) developer and manufacturer of specialized electronic components and connection systems, is expanding design, engineering, manufacturing, distribution, and support activities in the U.S. and in China, company executives announced to media here on Sept.

10/01/2005


Phoenix Contact ( www.phoenixcon.com ) developer and manufacturer of specialized electronic components and connection systems, is expanding design, engineering, manufacturing, distribution, and support activities in the U.S. and in China, company executives announced to media here on Sept. 16. Employees learned of the U.S. expansion about year ago, including more than $6 million in U.S. investment for a new 45,000 square-foot automated distribution center, to be finished in 2007, adding 200 employees by 2010. Employees number 355 now; 370 are expected by year-end 2005. Manufacturing expansion details are not yet final, but it will more than triple capacity from leased space across the street from its Phoenix Contact - USA headquarters, near Harrisburg, PA.

To speed new product innovation and enhance operating processes, Phoenix Contact is "Moving to a Trans National Corporation (TNC) with regional centers to address product development allowing Phoenix Contact to address customer and market opportunities faster than ever," says Frank Stuehrenberg, executive vice president global sales, Phoenix Contact GmbH & Co. KG. Company sales outside Germany are 60%; 90-95% of growth is outside Germany, he says. Its three largest markets are Germany, USA, and China. "How can we go on without a bottleneck in Blomberg activities?" The answer is by investing in "Regional Centers of Competence (RCoC) based at our facilities in Germany, the United States and in China." The U.S. Regional Business Unit will include research and development of new products for company subsidiaries in the Americas, including United States, Canada, Brazil, Mexico, and Argentina. Existing U.S. sales operations will continue growth, Stuehrenberg says, as will newly separated and expanded operations for product manufacturing, logistics, and central services.

Jack Nehlig, president of Phoenix Contact - USA, says the changes better position the company for aggressive growth, better serving existing business units and their customers. "Our new direction will allow us to work closer with our colleagues in Germany to more quickly develop and deploy innovative products for the Americas region." Phoenix Contact - USA sold $109 million in 2004, a 23% increase over 2003. U.S. sales will be "well in excess of $200 million by 2010," Nehlig says. The current 28,000 square-foot manufacturing operations are slated to expand to 90,000 square-feet by 2008. Already operating near capacity, the current distribution center cannot optimally handle the expected growth in shipments for customers through the Americas, Nehlig says. The new distribution center, and, to the extent possible manufacturing, are expected to use Phoenix Contact's control-and-automation systems in a state-of-the-art operation, he says. Design and manufacturing expansions in the U.S. facility will start with Ethernet and wireless technologies, since the U.S. company has led in development in these areas, Nehlig says. ODVA-based industrial networks and next generation of cabling for the Varioface system of wiring interface modules will also be U.S.-based.

Roland Bent, executive vice president of marketing and development, Phoenix Contact GmbH & Co. KG, says, "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 U.S. Instead of off-shoring, we call this 'in-shoring,'" to enable a more complete offering for customers in products and services, he says. Bent told Control Engineering he was "surprised how quickly the whole thing developed after the internal announcement a year ago. We threw a stone into the water and it expanded and developed from there." Bent and Stuehrenberg acknowledged the need to expand training in culture, guidelines, product lifecycle maps, and collaborative engineering tools.

Dave Skelton, vice president of the Americas business unit and of the U.S. RCoC, showed newly constructed, test-and-functional labs, more than $200,000 in investments, and an area for new engineers and managers, resulting from the announcements. "These are functional equivalents to labs in Germany," Skelton says. One immediate role will be to ensure compatibility among customers' ODVA-based industrial network products.

Phoenix Contact has been operating in China under a joint venture and continues to work on details to expand with an independent subsidiary operation for the RCoC in Nanjing, China. Details will follow in a future announcement.

Globally, privately held Phoenix Contact operates 38 subsidiaries employing more than 7,000 people, with annual sales exceeding 720 million Euro ($1 billion). The parent company was formed in Germany in 1923; U.S. company began in 1981. Six major product lines include more than 20,000 products. The lines are: Clipline, industrial connection technology; Combicon and Pluscon, device connection technologies; Trabtech, surge voltage protection; Interface, signal level matching; Automationworx industrial PCs, I/O devices, HMI, and software (including the acquisition of Entivity with the Steeplechase and Think&Do PC-based control product lines).





The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers. Vote now (if qualified)!
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
HMI effectiveness; Distributed I/O; Engineers' Choice Award finalists; System Integrator advice; Inside Machines
Women in engineering; Engineering Leaders Under 40; PID benefits and drawbacks; Ladder logic; Cloud computing
Robotic integration and cloud connections; SCADA and cybersecurity; Motor efficiency standards; Open- and closed-loop control; Augmented reality
Programmable logic controllers (PLCs) represent the logic (decision) part of the control loop of sense, decide, and actuate. As we know, PLCs aren’t the only option for making decisions in a control loop, but they are likely why you’re here.
This digital report explains how motion control advances and solutions can help with machine control, automated control on assembly lines, integration of robotics and automation, and machine safety.
This article collection contains several articles on how advancements in vision system designs, computing power, algorithms, optics, and communications are making machine vision more cost effective than ever before.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Control room technology innovation; Practical approaches to corrosion protection; Pipeline regulator revises quality programs
Cloud, mobility, and remote operations; SCADA and contextual mobility; Custom UPS empowering a secure pipeline
Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers. Vote now (if qualified)!
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
HMI effectiveness; Distributed I/O; Engineers' Choice Award finalists; System Integrator advice; Inside Machines
Women in engineering; Engineering Leaders Under 40; PID benefits and drawbacks; Ladder logic; Cloud computing
Robotic integration and cloud connections; SCADA and cybersecurity; Motor efficiency standards; Open- and closed-loop control; Augmented reality
Programmable logic controllers (PLCs) represent the logic (decision) part of the control loop of sense, decide, and actuate. As we know, PLCs aren’t the only option for making decisions in a control loop, but they are likely why you’re here.
This digital report explains how motion control advances and solutions can help with machine control, automated control on assembly lines, integration of robotics and automation, and machine safety.
This article collection contains several articles on how advancements in vision system designs, computing power, algorithms, optics, and communications are making machine vision more cost effective than ever before.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Control room technology innovation; Practical approaches to corrosion protection; Pipeline regulator revises quality programs
Cloud, mobility, and remote operations; SCADA and contextual mobility; Custom UPS empowering a secure pipeline
Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers. Vote now (if qualified)!
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
HMI effectiveness; Distributed I/O; Engineers' Choice Award finalists; System Integrator advice; Inside Machines
Women in engineering; Engineering Leaders Under 40; PID benefits and drawbacks; Ladder logic; Cloud computing
Robotic integration and cloud connections; SCADA and cybersecurity; Motor efficiency standards; Open- and closed-loop control; Augmented reality
Programmable logic controllers (PLCs) represent the logic (decision) part of the control loop of sense, decide, and actuate. As we know, PLCs aren’t the only option for making decisions in a control loop, but they are likely why you’re here.
This digital report explains how motion control advances and solutions can help with machine control, automated control on assembly lines, integration of robotics and automation, and machine safety.
This article collection contains several articles on how advancements in vision system designs, computing power, algorithms, optics, and communications are making machine vision more cost effective than ever before.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Control room technology innovation; Practical approaches to corrosion protection; Pipeline regulator revises quality programs
Cloud, mobility, and remote operations; SCADA and contextual mobility; Custom UPS empowering a secure pipeline
Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me