Aerospace Suppliers Scale Up for Defense and Jet Growth
Honeywell and Howmet Aerospace are scaling capacity to meet rising demand for munitions and plane parts. Both firms expect growth in defense and jet markets.
Major aerospace suppliers in the United States are signaling their readiness to expand production capacity as they face a simultaneous surge in commercial aviation demand and defense requirements. Executives from Honeywell Aerospace and Howmet Aerospace Inc. confirmed on Tuesday that they are working to balance the needs of commercial jetmakers with the urgent requirements of the defense sector, which has been bolstered by ongoing geopolitical instability. The defense industry is experiencing a significant ramp-up as conflicts in Ukraine and Iran continue to deplete global stockpiles of missiles and other munitions. Honeywell Aerospace, which is preparing for a planned spin-off in the third quarter of 2026, expects its defense business to see growth ranging from high single digits to low double digits this year. Jim Currier, CEO of Honeywell Aerospace, emphasized that the demand for defense products shows no signs of slowing down. > "The heightened geopolitical concerns and conflicts that are happening around the world, and have been for quite some time, are fueling a substantial amount of investment in the defense sector." In the commercial sector, suppliers are benefiting from aggressive production targets set by The Boeing Company and Airbus SE. While these manufacturers are increasing the output of new aircraft, the supply chain is under pressure to keep pace. Howmet CEO John Plant noted that while the company can support the ramp-up for narrowbody aircraft, meeting the additional demand for larger, long-haul jets presents a more significant challenge. > "My suspicion is that we would actually have to put more capacity down to achieve that level of production." Beyond production capacity, the industry is grappling with external economic pressures. The ongoing conflict involving Israel and Iran has contributed to oil prices climbing toward $100 per barrel, while also causing significant disruptions to global shipping lanes and flight schedules. Honeywell's aerospace division currently derives approximately 60% of its business from the commercial sector, with the remaining 40% coming from defense. The company’s broader restructuring plan includes separating its aerospace and automation businesses into distinct entities, following a previously announced spin-off of its advanced materials unit.
