Based on today investor presentation, it appears in the new 1st Qtr 2024 business portfolio structure there will be some major changes and realignment. It appears Aero will remain 33% of the portfolio. HBT appears to be being split-up and broken into 17% being Building Automation and 33% Industrial Automation of the total company portfolio. A new Energy and Sustainable Solutions SBU businesses will be 17%. It appears there will still be 4 SBU’s, but very different alignment and product offerings. Note 1.) Aero 33%, Building Automation 17%, Industrial Automation 33% and a new business called Energy and Sustainable Solutions 17%. Currently Aero is 33%, HBT is 17%, SPS is 20% and PMT is 30%. Are PMTor the old Allied Chemical businesses or SPS being sold? Is there a major new acquisition being planned or existing businesses being sold or spun off as a stand alone to form this new business portfolio structure? Are major layoffs coming? Any insight as to the new organization, spin-offs and realignment would be interesting insights as to the future developments what will be occurring over the next 90-days.
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@6lbs+1phkQiHM
I was in a dept with 3 design engineers, 2 relatively new to the business and one with 15+ yrs of experience. Guess which one got RIF’d.
The industrial giant announced on Tuesday that it was reorganizing to better align its operating divisions around the so-called megatrends of automation, aerospace and the energy transition. In practice, this essentially means lumping a Honeywell business that sells control systems, meters, pressure gauges and diagnostics to oil and gas, chemical and building materials companies with its other automation-related assets, including warehouse robots, advanced sensors and bar-code scanners. That would leave the other operations of its former Performance Materials and Technologies division — the UOP fuel processing and catalyst unit and the advanced materials arm — housed under the new label of Energy and Sustainability Solutions. Honeywell’s compilation of aerospace and defense assets is unchanged, but the division will now be called “Aerospace Technologies” instead of just “Aerospace.” Its “Building Technologies” unit will also stay the same but will now be called “Building Automation.”
Agree, it is bargain basement employees at Honeywell nowadays.
I can barely forgive a designer for not understanding what a slider is for an undercut but when an engineer does not understand it is time to pack up and leave.
Some of the CAD I have seen in the last 6 months demands immediate firing!
High school kids genuinely have higher skills then the people I work with, I am truly not exaggerating.
Sadly I see no way they’re ever going to be able to have ‘tried and tested’ designers or engineers or leadership again, they pushed all of those people out already (some rif’d, some left on own). They would have to offer sun & moon to try and win back, but most (if not all) have already moved on to greener pastures. I just don’t see how it will ever get back to what it once was, or even close; just seems like they’ve burned way too many bridges across the board (employees, customers, suppliers, etc.)
Whatever and however they the game comes with new rules, one key thing for sure, layoffs will happen, in batches, that's common tactics they use for sweeping out folks they don't want don't like.
Dead Brand Walking!
@1bty+1phkQiHM Whilst I 1000% agree with you, ain't gonna happen. IA will get demolished next year,
I got a bad feeling about this.
@1nfg+1phkQiHM When Honeywell says Headwinds it means 'screwed', I agree, many heads need to roll.
@1bty+1phkQiHM You know the score, one of the truest statements I have read on here. I am at the stage of quitting now, what I regularly receive from Design and Engineering leads me to despair. The void of knowledge, talent and direction from leadership in SPS has never been so damaging. I can not get my head around the Industrial Automation strategy, I fear it is just more smoke and mirrors.
I work across most SPS businesses, in the last 4 years I have noticed that design and engineering has really gone to sh1t.
Design is now second rate at best and has no grasp of our markets, fancy powerpoints and glossy renders are old hat nowadays and can no longer mask bad design and poor leadership. Engineering has just become diabolical, we have no chance of innovating at the moment. It was not that long ago we had half decent design teams and world class engineers, what happened!! I guess bean counters and financial tricksters took over. I want to blame DA but suspect he was just a puppet of the board much like our new boy.
Sadly it seems SPS 'cough' IA R&D, design and engineering will continue to diminish inevitably leaving us with nothing worthwhile to sell. I am very concerned yet curious to see how next years shake up of IA unfolds. If it was me I would definitely start with portfolio pruning like they claim to be doing in 2024, but really do it, time to simplify and focus on a smaller number of businesses and products. Next, A LOT of house cleaning is in order, plenty of deadwood leadership amongst my peers to cull, bring in some proper tried and tested design and engineering leaders and provide them with realistic budgets, freedom and mandates for quality standards in new hires. SPS/AI needs a proper reboot back to being Product Development driven again.
What’s clear from Q3 results is that SPS is a total disaster. The headwinds mentioned are largely caused by mismanagement IMHO. I’m surprised more heads haven’t been cut at senior level. Drastic changes ahead for sure.
Before accepting CEO position, VK knew he'd be DA's patsy fall guy. If he didn't know, then he's awfully slow for the fast lane.
I wonder if they will finally divest Intelligrated????? They have so screwed that business and all their clients. I’ve heard rumors they will have some more RIFs before the end of the year. Wonder how valid the rumor is?
For the most part it is just musical chairs, the same groups exist just reshuffled under new titles. I am reliably informed though that some businesses in SPS will be divested next year and some product lines stopped entirely. There will be some major pruning, not just in portfolios but also in workforce. VK is talking the talk but I doubt he will follow through with any significance. Expect a continuation of aggressive cost cutting, offshoring, RIF and a swap around of leadership roles. The sh1t will hit the fan next year though as Honeywell has used up alot of its cards under DA and certainly some financial chickens will be coming home to roost. VK will not be CEO beyond 2026 ;)