By Bill Rigby
NEW YORK (Reuters) - U.S. manufacturers are feeling the pinch from the slowing U.S. auto and housing sectors, but the booming aerospace business is providing relief to some.
Diversified manufacturers Honeywell International Inc. (HON.N: Quote, Profile, Research, Stock Buzz) and General Electric Co. (GE.N: Quote, Profile, Research, Stock Buzz) as well as more specialized companies are benefiting from explosive growth in the sector, according to executives at the Reuters Manufacturing Summit in New York this week.
"Aerospace had a very good quarter," said David Cote, chief executive of Honeywell at the summit on Monday, predicting the commercial side of the business "stays good for quite a while."
Honeywell is the biggest maker of cockpit electronics in the world and also supplies wheels, brakes, lights and other key parts for commercial and military planes.
The market for business jets is "going gangbusters," said Cote, estimating that there will be 20,000 business jets flying in five years, almost double the number five years ago.
According to industry figures, a record 885 business jets were delivered last year, up 18 percent from the year before, which means a fast-growing market for makers of original parts and spares, like Honeywell.
In the mainstream of air travel, Cote also looked forward to strong growth as airlines vie with low ticket prices to win a share of the travel-hungry public.
"That's a very bad dynamic for airlines," said Cote. "(But) a very good dynamic for anyone who makes the stuff that they all fly. The demand is there, and someone is going to fly them, and you'll see a lot of low-cost airline start-ups." Continued...
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