Honeywell to Build $500 Million Tempe Facility

The new 300,000-square-foot site will create 600 permanent roles by late 2028.

Updated on Oct. 28, 2026 in Manufacturing

Isometric editorial illustration of a sprawling modular aerospace facility set in a geometric, dry desert landscape. — Honeywell Aerospace will invest $500 million to build a new 300,000-square-foot manufacturing site in Tempe, Arizona, set to open in 2028. AI Illustration. Upload story photo >

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Honeywell Aerospace plans to construct a $500 million manufacturing facility in Tempe, Arizona, which is scheduled to open in late 2028. The project will generate 600 permanent jobs to support commercial aviation and defense programs.

Why it matters

The investment expands production capacity to meet requirements established in a March 2026 supplier agreement with the Department of Defense. This development solidifies the company’s manufacturing footprint in the region.

The 300,000-square-foot facility represents a $500 million capital investment. The project is expected to create 600 permanent positions while supporting more than 1,000 local construction jobs.

The players

Honeywell Aerospace

This global division of Honeywell International provides integrated avionics, engines, and aircraft systems.

Department of Defense

This executive branch department coordinates and supervises all agencies and functions of the government related to national security.

The details

The facility will integrate advanced digital production systems, including modular robotics, automated inspection, and digital twin modeling. These technologies allow for precise product testing and comprehensive information tracking through digital threads.

Honeywell signed a supplier agreement with the Department of Defense in March 2026.
The new manufacturing facility is scheduled to open in late 2028.

Market Landscape

This investment follows a pattern set by the Defense Production Act, which mandates the expansion of domestic industrial bases to meet critical military requirements. The move secures Honeywell’s competitive position as a primary contractor for both commercial and defense aviation sectors.

Local residents will see the economic benefit of 1,000 construction jobs during the development phase. The permanent addition of 600 roles will contribute to the city’s long-term employment growth and regional tax base.

The takeaway

The use of digital twins and threads in the facility design highlights a broader shift toward automated, data-driven manufacturing processes. These advancements allow companies to model products virtually before physical production begins, potentially reducing waste and development times.