OLATHE, Kan. – Honeywell (NASDAQ:HON) Aerospace Technologies, a unit of Honeywell (NASDAQ: HON), is set to invest $84 million to expand its Olathe, Kansas manufacturing facility, a move anticipated to significantly bolster the local and state economy. The expansion is projected to generate nearly $47 million in gross domestic product (GDP) and contribute $18.3 million in state and local taxes over the first six years of operation.
The project will also create 156 new jobs at the high-tech manufacturing site, which currently spans 560,000 square feet and produces avionics, safety, and flight control systems, as well as complex radio frequency systems for various aerospace applications. The expansion aligns with Honeywell's focus on the future of aviation and is expected to make the Olathe facility one of the company's most technologically advanced aerospace manufacturing sites.
According to Jim Currier, president and CEO of Honeywell Aerospace Technologies, the expansion will strengthen the domestic supply chain for next-generation avionics and printed circuit board assemblies. This strategic move underscores the company's confidence in the U.S. economy and its skilled workforce, he added.
The annual operations of the expanded facility will not only directly employ additional workers but are also anticipated to support over 200 jobs in other sectors of the Kansas economy. During the construction phase, 268 one-year jobs are expected to be supported in the state, contributing nearly $25 million in GDP.
Governor Laura Kelly and Lieutenant Governor and Secretary of Commerce David Toland have lauded Honeywell's decision to expand in Kansas, highlighting the state's prepared workforce and the administration's vision for developing the aerospace and advanced manufacturing sectors. U.S. Senator Jerry Moran also praised the move, noting the high-quality work of Kansas's workforce and the importance of strengthening the U.S. domestic industrial base in aviation.
The information in this article is based on a press release statement from Honeywell Aerospace.
InvestingPro Insights
As Honeywell Aerospace Technologies embarks on its $84 million expansion in Olathe, Kansas, the financial health and market performance of its parent company, Honeywell (NASDAQ: HON), are critical for investors and stakeholders monitoring the project's potential impact. According to real-time data from InvestingPro, Honeywell boasts a robust market capitalization of $129.67 billion, underscoring its significant presence in the industrial sector. The company's P/E ratio stands at 23.88, reflecting investor valuation of its earnings. With a gross profit margin of 37.28% over the last twelve months as of Q1 2023, Honeywell demonstrates strong profitability in its operations.
InvestingPro Tips reveal that Honeywell has been a consistent performer, raising its dividend for 13 consecutive years and maintaining dividend payments for 39 years, which could be a reassuring sign for income-focused investors. Additionally, the company is noted to trade with low price volatility, offering a degree of stability in an often turbulent market.
For those interested in deeper analytics and more InvestingPro Tips, Honeywell currently has 9 additional tips available, which can be accessed through an InvestingPro+ subscription. The subscription is now on a special New Year sale with discounts of up to 50%. To further benefit, use coupon code SFY24 for an additional 10% off a 2-year subscription, or SFY241 for an additional 10% off a 1-year subscription. These insights could prove invaluable as Honeywell continues to invest in its future and the future of aviation technology.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.