About Philip Gallagher
In a December 2024 interview at the Electronica trade show, Gallagher stated that Europe remains a "sweet spot" and is "critical" to Avnet's long-term success, despite current market softness. He described the industrial and automotive markets as "a little soft" with excess inventory needing to be burned off, but noted that Avnet is "not in it for the short term." Gallagher said he believed the market in Europe was "close to the bottom" and forecast that the market would begin to turn around in the second half of 2025, though he added he did not expect a "rocket ship" recovery. He also noted that defense and aerospace were performing well.
Earlier in 2024, Gallagher emphasized Germany's importance to Avnet, stating that roughly 50% of the company's European business comes from Germany. He highlighted Avnet's investment in a new warehouse and logistics center in Bernburg, Germany, which he described as "one of Avnet Inc's largest single investments" and which is expected to open around mid-2025. Gallagher also discussed the company's expansion in Freiburg, where Avnet is doubling its manufacturing capacity for embedded systems. In a separate interview, he commented on supply chain dynamics, noting that some customers are "moving around" to Vietnam rather than pulling out of China entirely.
Source: AI-verified profile updated from Philip Gallagher's recent appearances.
Browse all interviews →
Transcript (9 segments)
I
Interviewer0:00
Today we are talking to Phil Gallagher. He is the CEO of Avnet. A very warm welcome here in Germany. Thank you very much. So first of all, what is the importance of Germany as a business location for Avnet?
P
Philip Gallagher0:19
Germany is critical for Avnet, not just within Europe but globally. It's one of our fastest growing regions, continues to be, has been for years. When you bring it into the context just within Europe, Germany is roughly 50% of our total business comes out of Germany. The strong industrial segment, verticals like transportation, automotive, they're all growing, and it's the heart of all that is right here in Germany.
I
Interviewer0:51
Why is the new warehouse necessary?
P
Philip Gallagher0:55
Well, we're seeing great growth. It's roughly 190,000 square meters, 25 to 35 meters high. We're truly excited. Matter of fact, it's one of Avnet's largest single investments we've ever made, and we've been around for 101 years, so that's a statement in and of itself for Europe and a statement for Germany. The real reason is we're seeing growth. If you look over the next five to seven years in the industry, it's forecasted to double. If you look at the total industry, it's roughly 500 billion dollars globally, it's going to a trillion. And we believe not only Germany but Europe will get its unfair share of that market opportunity, and we need to have a location, that expansion, that warehouse logistics center ready to handle that increased capacity.
I
Interviewer1:51
And when will the warehouse be opening?
P
Philip Gallagher1:53
Roughly mid-2025, so it's moving along pretty quickly.
I
Interviewer1:59
And there's another one in the west, also in Freiburg. I think it's a kind of manufacturing site, is that right? What are the expectations?
P
Philip Gallagher2:07
Yes, that's what we call our Avnet embedded site. We actually do more than just distribution. We actually do design and manufacturing of boards, and we call it embedded. They actually go embedded into systems in industrial and medical power management. That business is also growing, so we need to add capacity, and we're basically doubling our manufacturing size and capacity in Freiburg.
I
Interviewer2:38
So thank you very much. Great, thank you for the opportunity.
