Growing strategic relationships

UTC serves customers primarily in two global industries: aerospace and building systems. Our aerospace customers include governments, aircraft manufacturers and airlines. Government aerospace customers include both military and civil in dozens of countries. In the United States, we provide products and services to all five branches of the military, NASA and the Department of Homeland Security. Sixteen percent of UTC’s business comes from government contracts. We only sell military equipment to foreign governments with the approval of the U.S. government. Our building systems customers include building owners and managers, building contractors and property developers worldwide.

UTC’s supply chain includes more than 50,000 companies, and in 2007 we spent more than $25 billion on procurement. Sourcing decisions are based on a supplier’s ability to provide high quality, best value products. In 2007, we fully launched our supplier EH&S program and asked more than 1,000 key suppliers to assess themselves against five expectations: provide safe working conditions for all employees, customers and contractors; adhere to all applicable national, regional, state and local laws and regulations governing EH&S; operate in a manner that minimizes the impact on the environment; limit the use of natural resources and promote sustainable natural resource practices; and communicate expectations to their employees and suppliers. All suppliers completed the self-assessments in 2007 and 81 percent met all expectations. By the end of 2010, our goal is for 100 percent to meet all five expectations.

We value a diverse supply chain and are committed to integrating supplier diversity into the way we do business. We actively seek competitive and innovative minority business enterprises (MBE), women business enterprises (WBE) and small businesses. In 2007, UTC purchased more than $350 million worth of products and services from MBEs, nearly double our 2003 spend.