Continuity and stability in corporate management in challenging times

“We have to take into consideration here that the company has grown above average in recent years, at times by more than 20 percent, based on a boom caused by shortages.” The market continues to be characterized by the reduction in inventories, which were built up everywhere during the period of material shortages. “It is therefore all the more important in these challenging times for us to maintain continuity and stability in our corporate management,” Leidecker emphasized. Dirk Görlitzer, a long-standing member of the Phoenix Contact Group Executive Board, will take over as Chief Executive Officer at the beginning of 2025. Frank Stührenberg, Chief Executive Officer (CEO) of Phoenix Contact, will retire at the end of December after 33 years with the company. To ensure a smooth transition, the two have been sharing the role of Chief Executive Officer since July 1. Stührenberg’s planned departure at the end of this year presents Görlitzer, together with his long-standing fellow board members, with good prospects to continue successfully developing the strategy and positioning of Phoenix Contact based on the current approach.

Phoenix Contact is currently enjoying growth in certain niche markets such as smart grids, secondary substations, data centers, and logistics. The classic main markets, such as machine building and the automotive industry, in particular, are struggling with sharp declines. At the same time, it remains to be seen whether an economic upturn will be driven by the USA. “However, we continue to expect high added value between us and the American markets in the future, and we hope for new positive impulses for the currently stressed economy. Our overall outlook for the American market remains positive,” Leidecker emphasized.

The current geopolitical tensions, such as the ongoing war between Russia and Ukraine and the escalating Middle East conflict, are not providing good conditions for increasing economic development. The situation continues to be difficult in China as well. Although the situation has relaxed slightly, growth remains subdued. The market is characterized by a changed market and competitive situation among customers and their end customers.

The company is currently managing this economically subdued situation with cost reduction programs, short-time work, and strengthened resilience in the value chains in order to position itself well for the next growth phase. To reduce dependence on individual economic regions, the company is focusing more on new markets, such as in Southeast Asia and Mexico, where it is already investing.

You can find out more about the investment program and the sustainability and efficiency measures in the statement available for download in the right-hand column.