Page 20 - AAA SEPTEMBER - OCTOBER 2018 Online Magazine
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a super supplier. It was their opposition that played a big part in considered by many as having the most
Honeywell dropping its 2016 offer to buy United Technologies. potential for growth. According to Avascent,
Industry experts believe that with OEMs continuing to exert a strategy and management consulting firm,
pricing pressure on suppliers, it won’t be a surprise to hear avionics and aircraft interiors segments
about new supplier consolidation proposals involving mid and together represent about 20 percent of
lower-tier players. annual commercial aerospace aftermarket
materials demand.
A Winning Formula
he merger of the two industry giants, both of whom The new business unit would combine UTC’s
have a significant presence in commercial aviation as capabilities in aerostructures, landing sys-
well as in defence, makes sound business sense as tems, engines and propellers with Rockwell
Tthere is little overlap between the components that UTC Collins’ capabilities in flight control, cockpit
Aerospace Systems currently provides and Rockwell Collins’ displays, aircraft interior systems and seat-
product lineup. The acquisition helps UTC expand its reach to ing, thus offering components from virtually
avionics, interiors and defense electronics, the segments that is nose to tail of an aircraft. The new super sup-
20 | September/October 2018 www.GBP.com.sg/AAA
