Honeywell Aerospace CEO Jim Currier called GE Aerospace's planned $12 billion acquisition of Consolidated Precision Products (CPP) "positive for the industry overall." Currier stated that the parts CPP supplies to GE are different from those Honeywell receives, indicating no direct competition. He also noted that Honeywell has been bringing outsourced capabilities back in-house and sees further opportunities to do so.
The comments from Honeywell's CEO suggest a degree of industry consolidation and a strategic shift towards vertical integration among major aerospace players as they navigate supply chain challenges and increasing demand for commercial jets.
Honeywell Aerospace CEO Jim Currier stated on Tuesday that GE Aerospace's planned $12 billion acquisition of Consolidated Precision Products (CPP) is "positive for the industry overall." Speaking at the Morgan Stanley Laguna Conference, Currier noted that the types of parts CPP supplies to GE are different from those Honeywell receives, indicating no direct competition or portfolio overlap between the two companies.
Aerospace companies are increasingly acquiring smaller manufacturers of in-demand parts or bringing production capabilities in-house to address supply chain struggles amid strong demand from planemakers seeking to increase commercial jet output. GE Aerospace announced its deal to acquire CPP earlier this month to help alleviate jet-engine supply bottlenecks.
Currier added that Honeywell Aerospace has been working to bring back some core technologies and capabilities that were previously outsourced, a process that has been ongoing for the last two years. He believes there are further opportunities to bring outsourced capabilities in-house in both the short and long term.