Honeywell declares war on fixed costs
May 22, 2018 8:37 AM ET|About: Honeywell International, Inc. (HON)
Speaking on a webcast at the EPG conference, Honeywell (NYSE:HON) Darius Adamczyk said the company’s 283 manufacturing and logistics facilities are too many.
Half of the facilities are non-core and he seeks to cut half these plants by 50% in the next five years.
Keep abreast of the consolidation effort.
http://www.loopnet.com/locations/honeywell-aerospace/listings/
This is old news. This is just a reiteration of an existing policy that has been in place for at least a decade. It is one of HR's main functions. Aerospace has senior leadership on staff whose sole job is facilitate plant closures and consolidations. This is just a reminder to the investment community that reducing cost is a top priority. This effort is going to acelerate as the company transforms from a hardware company to a software one where the need for infrastructure both domestically and internationally is less.
The full recording of the Florida conference he said this at is on www.honeywell.com under the Investors section. It's only 42 minutes long. He says closing half the manufacturing sites over next 5 years is a conservative goal. Stretch goal 100%???
The Investors meetings throughout the year provide way more information than any internal townhall
Hey, cost saving idea.....close some of the sites and let us work from home! Hahahaha.......
Selling those sites provides profits and makes it appear that Honeywell is doing better than it is. How do you think Aero makes its target each quarter? By special one time events. It certainly isn't shipping product as past due breaks a new record every week. Odd how the old ISC leader was fired when past due broke 200 million but the new leader it still here at 500. Aero needs one time events to get past the incompetence of ISC layoff decisions and miserable working conditions.
They have been working on having Tempe go the way of Celestica for years now...so much of a mess that it will never work. And anyone remember the selling of the Tempe building? Lol, at least a dozen interested parties took one look inside and ran away screaming at the how much work (=$) would be needed just to modernize it, hell, just fix the trip hazard carpets, falling ceiling tiles...elevators anyone? Would recommend you take the stairs so you don't get stuck in one like happens 2 or 3 times A WEEK. What a joke of a company this has become.
There's a little more detail over at Reuters. Not looking good for the factory or hardware design. https://www.reuters.com/article/brief-honeywell-ceo-sees-opportunity-to/brief-honeywell-ceo-sees-opportunity-to-simplify-portfolio-epg-2017-conf-idUSFWN1IP0LM
Sounds like they will be selling those sites like they did to Tucson or Toronto R&O.
What exactly is core anyway? This $hithole company does nothing RIGHT!
Well I guess Transitions dept. will be busy.😂 Then what?
"Not a core competency" could be my epitaph. Glad to be out of this crap company and retired. BTW, they were happy to have me work as a contractor for several years ... working my non-core competency magic. Now's even that is done. Time to turn the page and close the book. Allied-Signal / Honeywell accomplished one thing -- they made me feel glad to be getting older, knowing that the day was approaching when I could escape this dysfunctional sh^t show.
And his predecessor was an idiot to create this situation. Oh, was that you DC?
and the RIFs shall continue ...........