by Laura Reggiani |
Supplier of connectors and other components for applications requiring high reliability solutions such as those in the defence, aerospace and industrial sectors, Powell Electronics is one of the world's largest assemblers and distributors of connectors.
It operates a 30,000 square metre, Iso9001 and AS9100 certified facility in the US, and is a QPL-listed, qualified distributor for more than 50 military connector specifications. The company had already strengthened its European presence last year by moving to a new facility in Dublin, Ireland, employing more technical staff to support design activities and signing new franchise agreements. Until last year, Powell Electronics in Europe had focused exclusively on the 'agricultural' sector from its small facility in Utrecht in the Netherlands. In mid-2019, Gary Evans, a connector professional who had held management positions at Harwin, Deutsch and ITT, was tasked with redefining Powell's European business and, as a result, major European franchise agreements were signed from 2020 with companies such as Glenair, Harwin, Amphenol Aerospace, Quell, AB Connectors, Lemo, Conesys and many others. Evans has also built a strong and experienced team to support its European customers and it is part of this team that has appointed industry veteran Nicola Della Malva as manager for Italy and South East Europe. Well-known in the industry, Della Malva, who previously worked at PEI Genesis, a company he started in Italy 11 years ago, ITT and Yamaichi, explained Powell Europe's business model and strategies for developing the European market.
The full article is published in Issue 9 of Elettronica AV
Who is Powell Electronics today and what is its business model?
Powell began in 1946 as a distributor of connectors and other solutions for applications requiring high reliability in the defence, aerospace and industrial sectors, and this is still its business model today. The company, led for many years by its founder Harold H. Powell, has expanded from its hub in the northeastern United States, opening several local offices throughout the US, and has grown over the years both organically and through acquisitions, such as that of East Coast Microwave, a manufacturer of radio frequency and microwave components. Powell's acquisition strategy is very clear and involves providing infrastructure and financial support to the acquired company, which remains an independent entity operating in the marketplace on its own. The model with which Powell operates in the market today is very clear: total specialisation in interconnection and electromechanics, which is difficult to find among our competitors. At Powell we are totally focused on the core business of selling connectors and providing first class commercial and technical support from a team of experts, most of whom have held senior sales or technology positions in some of our key franchises.
What are Powell's strengths and differentiation from other competitors? Why should a customer choose you as a supplier?
Despite doubling in size and strong company growth, Powell has maintained an intimacy with the customer that many competitors do not have. At Powell, all roles, from executive management to customer service, interface with customers on a daily basis, because we believe that the direct relationship and advice provided by our specialists, in the challenging environment in which we operate, is an important key to differentiation and success. Furthermore, we do not only distribute connectors made by our suppliers, but we are also able to develop connectors of all shapes and sizes in-house. Our experience also allows us to propose ourselves to the customer as a design partner, and this is demonstrated by the 12% of sales that come from the "demand creation" activity carried out with customers.
You specialise in connecting devices, but also offer other components. How is your product range structured? Are there possibilities to expand the range?
Our product offering has expanded over the years to include products such as cables, relays, sensors and other solutions from our franchises, and we have also grown in areas such as junction boxes and electrical boxes. That said, Powell intends to remain focused on its core business, continuing to develop its interconnect offering and offering solutions ranging from miniature PCB-mounted devices to high-voltage, high-current hi-rel solutions.
Powell only entered the European market last year. What are the reasons behind this choice? How are you structured to support the European market?
Powell has been present in Europe for more than 10 years, although in the past it had only focused on the "agricultural" sector. However, during these years, it has worked on the European market and developed a strategic plan, in collaboration with the main franchises, to increase its penetration, then, at the end of 2019, it considered that the time was ripe to be present directly in the territory with its own structure. So it moved its operations to Ireland, opening a logistics hub near Dublin, dedicated to European customers, and recruited a team of experts from companies such as Amphenol, ITT, TE, throughout Europe, able to offer technical and commercial support at local level. We now have a direct presence in France, the UK, Turkey and Israel as well as Italy, and this expansion will be completed in the coming years.
What impact has the pandemic had on results? Is the shortage phenomenon that the chip world is experiencing also being felt in connectivity?
Last year, Powell's global turnover remained positive, and in Europe we even had a record year, both in terms of orders and turnover. The trend we see in Europe continues to be positive, and in the first half of 2021 we expect to see growth of over 40%. The connector sector is also experiencing a similar moment to that of chips: many connector productions are carried out in countries such as India and Mexico, both of which were heavily affected by the pandemic, which slowed down deliveries, and the shortage of raw materials, such as resin for mouldings, further complicated the situation.
The full article is published in Issue 9 of Elettronica AV
