Published by Global Banking & Finance Review®
Posted on October 15, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleHoneywell reports improvements in aerospace electronics supply chain, focusing on avionics and navigation equipment, despite ongoing challenges in parts manufacturing.
(Reuters) -The production of electronics for aviation is a bright spot in the aerospace supply chain, whereas manufacturing of some parts still remains challenging, a senior executive at supplier Honeywell told Reuters.
While accessing some products like castings and forgings used for engine manufacturing remains difficult, Honeywell and other large aerospace suppliers in recent months have pointed to signs of improvement in the supply chain.
Honeywell supplies products including avionics and flight control systems to Boeing, Airbus and Chinese planemaker COMAC, and ground-based power units to airlines.
But shortages of labor and materials like aluminum, steel and superalloys continue to dog the aerospace industry, with airlines facing more than $11 billion in extra costs due to various supplier disruptions this year, the International Air Transport Association (IATA) said on Monday.
Honeywell Aerospace Chief Commercial and Strategy Officer Ben Driggs said in an interview on Friday that products like avionics and navigation equipment were the most improved areas within the supply chain because they relied less on the availability of raw materials.
"So avionics, navigation, satellite communications, that's where we've seen the most improvement," Driggs said.
"It has less raw material constraints," he added, without disclosing the name of any particular material.
The supply chain has struggled to meet growth from all three segments of the aerospace market: commercial air transport, business aviation and defense.
Driggs said other parts of the supply chain including engines for private jets were also improving, but not as much as electronics.
IATA CEO Willie Walsh has questioned the influence large suppliers exert over the prices of parts, pointing to a gap between airline operating margins, forecast at 6.7% this year, and margins of some engine makers and suppliers in the mid-20% range.
Honeywell's aerospace division reported a 25.5% margin in the second quarter.
Driggs declined to comment on margins, but said it was important for suppliers to support airline operators.
After pressure from activist investor Elliott Management, Honeywell in February announced plans to split into three independent companies, including a spin-off of its aerospace business.
(Reporting by Allison Lampert in Montreal; Editing by Jamie Freed)
The aerospace supply chain refers to the network of manufacturers, suppliers, and distributors involved in producing and delivering components and systems for aircraft and spacecraft.
Avionics are electronic systems used in aircraft, including navigation, communication, and flight control systems that enhance the operational capabilities of the aircraft.
Castings and forgings are manufacturing processes used to create metal parts. Castings involve pouring molten metal into a mold, while forgings involve shaping metal using compressive forces.
The International Air Transport Association (IATA) is a trade association for the world's airlines, representing around 290 airlines and helping to formulate industry policy and standards.
Superalloys are high-performance alloys designed to withstand extreme temperatures and stress, commonly used in aerospace engines and other high-temperature applications.
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