Honeywell CEO Comments on GE-CPP Deal Amid Aerospace Supply Constraints
Honeywell CEO Jim Currier praised GE Aerospace’s $11.75 billion acquisition of Consolidated Precision Products (CPP) as a positive move for the industry, noting that Honeywell does not directly compete with CPP due to differences in sourced parts. The deal underscores an ongoing shift toward vertical integration within aerospace manufacturing amid persistent shortages of critical components like castings and forgings. Currier highlighted how this strategy aligns with Honeywell’s own efforts to bring outsourced capabilities back in-house, especially after the company cut its 2026 organic sales-growth outlook due to supply constraints. The CEO also noted that vertical integration could improve production throughput and help capture stronger aerospace demand, particularly from the aftermarket segment. However, Currier acknowledged challenges: while vertical moves can enhance capacity over time, they require capital investment and execution, which may not immediately reverse earnings pressures. Honeywell’s second-quarter adjusted EPS fell 32% due to supply constraints and an unfavorable sales mix.
Topics: Aerospace Supply Chain Management Vertical Integration