Boeing is usually shopping for its next acquisition, aiming to build its robust business of souping up airplanes.
CEO Dennis Muilenburg told CNBC’s Phill LeBeau in which growing the services unit is usually “a top priority” as the aerospace giant tries to “find strategic acquisitions in which complement our organic investment in services.”
“We’re also looking for targeted vertical depth in areas like avionics along with digital solutions, data analytics,” Muilenburg said on “Squawk Alley.”
the planet’s largest aerospace company is usually well on its way to reaching its long term goal for its services business, which in which hopes to grow to more than $50 billion in annual revenue in all 5 to 10 years. The services unit, already Boeing’s most profitable, is usually growing more than twice as fast as the broader aircraft services market, offering aircraft maintenance, data analytics along with supply chain services.
Muilenburg said Boeing is usually focusing on creating “strategic acquisitions” in which will “actually complement our organic portfolio.”
The company expects the global market of servicing commercial along with government aircraft will be worth $2.6 trillion between 2017 to 2026. The steadily increasing demand for air travel means Boeing is usually creating demand inside services market with the hundreds of brand-new airplanes in which is usually producing each year.
Boeing is usually also creating long-term bets through its HorizonX Ventures arm, which Muilenburg said “tend to be more partnership types” than outright acquisitions.
“Things like investments in artificial intelligence, robotics along with automation,” Muilenburg said.
The venture capital arm of Boeing has started out off 2018 with several high profile investments, such as battery start-up Cuberg, Australian satellite company Myriota along with British propulsion company Reaction Engines.