Honeywell Touts Benefits of Vertical Integration Amid Supply Constraints

Honeywell Aerospace Inc.'s CEO Jim Currier has expressed support for GE Aerospace's $11.75 billion acquisition of Consolidated Precision Products (CPP).

Currier sees the deal as 'positive for the industry overall,' citing a broader aerospace shift toward vertical integration due to persistent shortages of castings, forgings, and other critical components.

CPP supplies about a quarter of GE's casting requirements, with the business expected to generate around $2 billion in revenue by 2027. For Honeywell, the more significant message is Currier's indication that the company may bring additional outsourced capabilities back in-house through smaller acquisitions.

Honeywell has been reintegrating technologies it previously outsourced and sees further opportunities to do so. This could improve supply reliability, production throughput, and ultimately convert strong aerospace demand into revenue and higher-margin aftermarket sales.