Bloomberg. Going back in time can often help in times of crisis. In 2009, Phoenix Contact, a specialist in electronics at Bloomberg, lost 20 percent of its sales during the global economic crisis. It was a disaster, but in the decade that followed, the family business was incredibly successful. Bloomberg's sales doubled from 2010 to 2019 while employing an additional 7,000 people.
Encourage. This time, in the Corona crisis, Phoenix Contact boss Frank Stührenberg · expected a negative value of only 5 to 10 percent, which was a "massive cut", which Strenberg admits. "However, this is a manageable order of magnitude." "We want to get out of the crisis when it erupts," he promised. We are present in all people and places. ”
Take advantage of opportunities for short-term work
The company wanted to take advantage of the possibility of working in short hours, not in production and logistics, but in the administrative area. The first employees will begin short-term work in April, and the program may be expanded in May. "Then we'll talk about those steps on a monthly basis." Production continues at full speed at all locations. The only exception is India, where India government has promised to bring the economy to a complete halt.
For Lipper, 2019 was not as good as initially hoped, but in the end, sales increased by 100 million euros (4.5%) to 2.48 billion euros. In any case, they are better than the industry because most of the competitors tend to have zero growth and thus level off. Phoenix Contact's markets in Germany and the United States were weak, while the Asian markets performed well.
Invest 30 million euros in China
Since 2018, Bloomberg has invested around 30 million euros in the Chinese metropolis of Nanjing in a 42,000-square-meter company building. Stührenberg explained that in addition to production, accommodation is also provided for local workers, the so-called dormitories, which are equipped not according to local conditions but according to Phoenix Contact standards. "We'll be well-equipped here for the next few years." But the company also invested in Bloomberg. The expansion of the distribution center is in its final stages. The investment of more than 15 million euros will increase the logistics capacity by 30 to 40 percent, and the total investment will reach 200 million euros
The strongest growth was in the electric vehicle segment. The curve there shows a strong upward growth of 70%. In addition to the existing range, there are now systems for vehicles and machines, which operate in closed areas, such as tunnels, where exhaust gases are not allowed.
5,000 registrations for the virtual expo
When it comes to product innovation, you won't let it go, says Stührenberg. And since the Hannover Messe was canceled, the company will start its own virtual expo from Monday. It was a great success: 5,000 participants had already signed up for the "Phoenix Contact Dialog Days".
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