by Mike ‘Mish’ Shedlock
Here’s an “Aero Industry Update” from a contact who works at Honeywell. His past comments have proven to be accurate. He now waits for the axe to fall due to cancelled orders and lack of demand.
Honeywell Employee writes ….
I am still waiting for the ax to fall at Honeywell in US. Reduction in force (RIF) has already hit the company’s sites in Mexico and Europe and US contractors are gone, but US RIF is on hold until Sept 13 at earliest because of WARN Act 60 day notice.
The axe will happen by the end of quarter. There’s lots of pressure coming from OEMs who are seeing big drop in demand from airline customers. Boeing is freezing prices so margins are getting pinched. Airbus customers are delaying deliveries because orders are not coming in. Bizjets orders are off too. The biggest weakness is from China, Brazil and Canada. Trouble is across entire the industry.