Honeywell to open new manufacturing site, aims to ease supply chain woes

The company’s chief executive has recently expressed interest in bringing more manufacturing back in-house.
Honeywell Aerospace plans in late 2028 to open a new manufacturing site near its Phoenix headquarters, a move it describes as a major expansion that will help ease supply chain constraints.

The facility in the Phoenix suburb of Tempe will “support the largest commercial and defence” aerospace customers, perform a range of aerospace work and create 600 jobs, Honeywell said on 28 October.

With 27,900sq m (300,000sq ft) of space, it will house “an integrated digital production system” and technologies including “modular robotics”, automated inspection systems and digital-twin capabilities.

Honeywell adds that the expansion will “create supply chain resilience” by providing more “internal complex machining capability – a key area of the supply base that is currently constrained”.

News of the planned Tempe site (depicted above) comes as Honeywell has been seeking solutions to industrial issues that have kept suppliers from keeping up with demand. Source: Honeywell

The site will also support a “more-vertically integrated production system for the next generation of products”, including Honeywell’s Assure line of actuation systems and its Attune vapour cycle cooling systems. It will also produce engine start systems, environmental control systems and components for CFM International Leap turbofans, GE Aerospace GEnx turbofans, Boeing’s 737 Max and 777X, and air taxi developer Archer’s Midnight aircraft.

The Tempe plant will provide capacity to support production for the US Department of War, Honeywell adds.

The expansion comes four months after once-conglomerate Honeywell spun Honeywell Aerospace into a standalone aerospace firm.

Honeywell Aerospace insisted the separation would provide it with autonomy needed to better respond to forces shaping the aerospace industry.

Chief executive Jim Currier says the planned Tempe move exemplifies that newfound autonomy.

“This is an example of how our recent spin into an independent publicly-traded Honeywell Aerospace allows us to make decisions and investments that support our growth and the future of aviation and defence,” he says.

“Demand for technology from Honeywell Aerospace continues to accelerate across both commercial and defence markets, and this major investment ensures we can continue delivering,” Currier adds.

Honeywell meanwhile has been struggling to overcome supply chain and industrial problems that proved more protracted than it expected.

In August, such issues prompted Honeywell to slash its 2026 financial guidance. Currier at the time said he underestimated the pace of Honeywell’s recovery and that the “supply base has not been able to ramp in the manner we were expecting”.

He cited cast, forged and machined metallic parts as those in shortest supply.

In September, Currier said his firm previously went too far in outsourcing “core” manufacturing work and that he intended to bring more manufacturing back in-house.

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