Canadian Electrical Wholesaler

November 30, 2016

Phoenix Contact Presents Its Agenda 2023 — A Preview of the Company’s Centenary

Phoenix Contact has released Agenda 2023, a comprehensive package of restructuring and strategy measures to ensure the company’s sustainability. The title of the package builds on the company’s upcoming 100-year anniversary in 2023. 

The company manufactures industrial automation, interconnection, and interface solutions.

Agenda 2023 is a continuation of the path toward a clear market segment orientation that the company embarked on several years ago. It creates a foundation for stable and sustainable growth in the company’s core business. At the same time, it is a proactive move to tackle the challenges faced by digitalization and creates space and provides a focal point for developing new business fields that secure the company’s future, in addition to the core business. 

The measures in Agenda 2023 include a systematic orientation of the business activities in a market segment structure and a clear expansion of the solutions provider business and the willingness to change as necessary, which is essential for the digital transformation.

In June 2016, the Phoenix Contact Group’s core business was restructured into three business areas as part of the package of new strategies. These business areas have evolved from the business restructuring that started five years ago, in which there were the three market segments of 

• device connectors

• industrial components and electronics

• control and industry solutions

Agenda 2023 also consistently pushes forward the need for greater proximity to the market, which means the divisions and sales organization will no longer be separate. This move gives the business areas complete accountability for development, production, and sales of their product and solutions range to the customers. There will be three sales groups in the international sales subsidiaries that will now be placed directly under the management of the business areas, but still be covered by a local management. Thus, these moves retain the synergy effects while maintaining a focus on the corresponding specific needs of customers in the market segments. 

As part of the restructuring, the division control and industry solutions was merged with the business unit I/O and Network into the business area Industry Management and Automation (IMA). Now this business area represents the core program of automation technology, which includes control technology with PLC, HMI, and IPC, industrial communications technology with network infrastructure, I/O systems, and wireless applications, as well as functional security and cybersecurity. 

The strategic approach of targeted development of end-to-end industry solutions will remain, while being expanded by the incorporation of diversified industry management. This industry management is active in the four vertical markets: process industry, energy, factory automation, infrastructure. The following target industries will be covered by it: power generation, power transportation and distribution, wind/solar power, building infrastructure, water/wastewater, oil and gas, chemical and pharmaceutical, marine and offshore, machine building, plant engineering/automotive. 

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Worldwide, an estimated 24 billion square feet of new commercial buildings is constructed annually — the equivalent of about 9,000 new Empire State Buildings. The new Navigant white paper concludes that while building owners have been deploying intelligent buildings solutions that rely on data for automation and control for decades...

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