Honeywell Aerospace Plans $500M Tempe Manufacturing Facility, Adding 600 New Jobs

Honeywell Planning $500M Phoenix Expansion
CRE Market Beat Take
A $500 million, highly automated aerospace manufacturing expansion by an established occupier reinforces industrial demand durability in the Phoenix metro and supports long-term employment growth tied to defense production.

Honeywell Aerospace plans a major expansion of its manufacturing footprint near its existing operations in Tempe, committing $500 million to a new production facility in the Phoenix area.

The project calls for a 300,000-square-foot manufacturing plant that will neighbor Honeywell Aerospace’s current Tempe site. The company expects to break ground on the development early next year, with construction scheduled to run through late 2028, when the facility is slated for completion.

The new plant is being designed around an advanced digital manufacturing platform. Honeywell Aerospace plans to integrate an end-to-end digital thread that will connect engineering, production, and quality functions throughout the facility. The operation is expected to incorporate modular robotics, automated inspection capabilities, and digital twin technology to support efficiency, precision, and performance in manufacturing processes.

Once operational, the Tempe facility will support Honeywell Aerospace’s largest commercial and defense customers and will be positioned to produce some of the company’s most advanced aerospace products. The investment is intended to expand the firm’s local production capacity while modernizing how it manufactures and delivers systems to both commercial aviation and defense-related clients.

The project is also expected to provide a meaningful boost to the regional labor market. Honeywell Aerospace anticipates the new facility will create 600 new jobs when fully staffed. In addition, the company estimates that construction activity tied to the development will support approximately 1,000 local jobs over the course of the build-out period.

Honeywell Aerospace already has a significant presence in the state. The company is identified as Arizona’s second-largest defense contractor and currently employs nearly 9,000 people across the metro area. Its footprint in and around Phoenix includes seven offices and manufacturing plants, underscoring the region’s role as a core hub for the firm’s operations.

With this latest investment, Honeywell Aerospace is deepening its long-standing concentration of facilities and employment in the Phoenix market, reinforcing the area’s position as a key center for aerospace and defense manufacturing activity.

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