United Technologies Corp. to boost spending with minority suppliers

United Technologies Corp. (NYSE: UTX) told attendees at its sixth annual Minority Business Exchange event that it expects to spend more than $300 million this year with minority suppliers -- nearly double the total of just five years earlier.

The Minority Business Exchange (MBX) provides a forum for minority business enterprises (MBEs) to align their value proposition with UTC’s short and long-term needs. The MBX, held Oct. 11th at the United Technologies Research Center in East Hartford, Connecticut, also offered workshops, a recognition ceremony and a targeted matchmaker to encourage business relationships. “Think Big” was the theme of this year’s MBX, which focused on ways MBEs can support UTC’s global growth.

Louis Chênevert, UTC President and Chief Operating Officer, participated in this year’s MBX and shared his thoughts about the company’s cooperative relationships with minority business enterprises. “A diverse supply base gives UTC a broader base of suppliers to choose from. This broad base of suppliers encourages competition, innovation and drives productivity,” Chênevert said. “As a good corporate citizen, UTC also believes that our supply base should reflect the world where we live and do business -- It’s simply the right thing to do.”

In the past five years, UTC has made more than $1 billion in purchases from minority-owned business enterprises. In 2006, MBEs provided $275 million worth of products and services to UTC. The corporation expects to drive MBE purchases to more than $300 million in 2007, nearly double the amount that was spent back in 2003.

“Our annual MBX continues to be a tremendous opportunity for our key supply management and operations associates, tier one suppliers, and minority-owned business enterprises to exchange perspectives and discuss sourcing opportunities,” said Jothi Purushotaman, Vice President, UTC Operations.

“At UTC, we continue to focus on global growth strategies and we need our supply base to provide the innovation, productivity, scale and global reach as necessary to support our business needs,” he said. “We also have a clear goal to accelerate our growth with minority business enterprises (MBEs). At this year’s conference we shared our growth vision and presented successful strategies implemented by high performing minority businesses.”

This year’s MBX drew more than 300 attendees, including nearly 100 minority business representatives, 40 non-minority business representatives and 160 UTC employees.

"Our message to diverse suppliers is: There are tremendous opportunities to grow with us and, we want to partner with you," said UTC’s Claudia Muñoz-Nájar, Supplier Diversity Manager. "Our message to our Tier-1 suppliers is that we expect them to have the same commitment to diversity as we do. Our message to our employees is: Be inclusive of diverse suppliers. By doing so, we create a more competitive supply base with more capacity and more new ideas which means a greater overall value proposition. That's good for everyone."

The MBX recognized Cherokee Nation Distributors as UTC's Minority Supplier of the Year and Ken Aransky, procurement agent for configuration hardware at Pratt & Whitney, as Supplier Diversity Advocate of the Year. In addition, Cassandra Charles-Gerst, formerly UTC Manager, Supplier Diversity, received a special award for her leadership and contributions.

United Technologies Corp., based in Hartford, Connecticut, is a $47.8 billion diversified company that provides a broad range of high technology products and support services to the building systems and aerospace industries.