Honeywell Aerospace reviews outsourcing, may bring work back in-house

Honeywell Aerospace might bring some manufacturing work back in-house. Chief executive Jim Currier said the company could have gone too far when it divested core manufacturing in the past decade.

At an investor conference hosted by Morgan Stanley on 15 September, Currier said Honeywell has spent the past two years returning some outsourced technologies and capabilities to its own operations. More could be done in the short and longer term to increase output and make the supply base more resilient.

The practice is called vertical integration, and it is appearing more often across the sector.

On 8 September, GE Aerospace said it would acquire Consolidated Precision Products, a supplier of complex engine blades, vanes and other airfoils. The purchase is expected to close in the second half of 2027. GE said it would support expanding capacity for mission-critical castings. Airfoils are among the hardest engine components to produce, needing skilled labour and precise processes, and are among the aerospace parts in shortest supply. Kevin Michaels, founder and managing director of consultancy AeroDynamic Advisory, called the work the ultimate black art.

Currier said on 9 September that Honeywell Aerospace's output is particularly limited by shortages of four types of parts, without naming them in the available account.

The moves come as aerospace manufacturers look to secure production capacity and reduce reliance on outside suppliers.