Boeing sets up in-house electronics team to develop avionics



The new Boeing Avionics unit marks a reversal in its strategy of outsourcing avionics development and aftermarket services to companies such as Honeywell International and Rockwell Collins.

It will focus on navigation, flight controls, information systems and other technology with the aim of bringing products to market in the next 10 years, the Chicago-based company told employees in an internal announcement on Monday.

The memo, from Boeing CEO Dennis Muilenburg, told staff: “Our new avionics organization continues our strategy to build targeted vertical capability so that we can further drive cost down and value up for our customers, in all phases of a product’s life cycle.”

It is understood that the new business unit will grow to a workforce of about 600 by 2019 from the current 120.

Boeing currently produces some avionics equipment, including vehicle-management systems, secure computing systems and signal intelligence for its commercial and government divisions.

However, it has relied heavily on outsourcing in recent years, notably through the global supplier network that designed and built much of the 787 Dreamliner (pictured).

In a related move, Boeing has also founded Boeing Global Services, a new division to take on higher-margin maintenance and spare-parts sales.


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