- Honeywell International Inc (NASDAQ:HON) is exploring adding more suppliers as it prepares to meet higher demand from Boeing Co (NYSE:BA) and Airbus SE (OTC:EADSY), which are ramping up production to cater to a surge in air travel, Reuters reported.
- Honeywell, which manufactures everything from engines to cockpit components, is working to diversify its supplier base of parts and raw materials as it relies on only two vendors.
- In an interview with Reuters on Friday, Benjamin Driggs, president of Honeywell's high growth regions, said, "It is a constant effort (to find new suppliers)."
- The report noted that the primary raw materials for the aerospace unit include titanium, which has been under focus due to its importance in making lightweight airframes and given Russia's position as a key supplier for the metal.
- Driggs stated that Honeywell was not seeing a "significant shortage" of titanium and nickel, two crucial metals required to produce lithium-ion batteries.
- Even though supply chain issues have hampered Honeywell's quarterly performance, the business is "ready to support the schedules" of Boeing and Airbus, according to Driggs.
- Price Action: HON shares are trading lower by 0.06% at $190.01, BA higher by 0.26% at $175.69, and EADSY higher by 1.73% at $28.28 on Monday's last check.
