**Abington Township**: A significant fire at SPS Technologies has caused extensive damage, raising alarms over potential shortages and delays in U.S. aircraft manufacturing. The incident threatens the supply chain for military and civilian aviation as stakeholders assess the impact and explore alternative sourcing solutions.
A significant fire at SPS Technologies, located in Abington Township, has raised concerns about potential shortages and delays in U.S. aircraft manufacturing and repairs following the incident that took place last week. The fire resulted in substantial damage to the aerospace fastener manufacturing facility, with reports indicating the collapse of factory sheds at the heart of the complex. While the office buildings facing the street remained largely intact, the destruction brings uncertainty to the supply chain that supports military and civilian aviation.
Jake Boyer, spokesperson for the Defense Logistics Agency (DLA), which operates from Fort Belvoir, Virginia, stated, “We are assessing the situation” and coordinating with manufacturers to ascertain the impact of the fire. However, the timeframe for this assessment remains undetermined as it is “situationally dependent.” SPS Technologies has long been a key supplier of specialised components such as bolts, washers, and assemblies that are crucial for the operation of military aircraft including Apache Longbow and Blackhawk helicopters, Tomahawk missiles, and F-15 fighter jets.
The incident may prompt military planners and Philadelphia-area parts manufacturers to explore alternative suppliers. Art Newcomb, owner of C&L Rivet Co., noted the historical difficulty in replacing equipment, particularly large presses that have been operational for nearly a century at SPS. He remarked, “New equipment today… you need a year and a half lead time,” highlighting the challenge presented by the diminishing number of U.S. manufacturers able to produce such machinery.
Skilled labour shortages further complicate the situation. Newcomb indicated that finding tool-and-die-making machinists is increasingly difficult, stating “the skilled labor force is diminishing with the aging population.” SPS Technologies, which has significantly reduced its workforce from a family-operated group in Montgomery County to approximately 475 employees following its acquisition by Precision Castparts, faces challenges in retaining staff, some of whom have sought employment with competitors.
Precision Castparts, the Oregon-based division of Berkshire Hathaway owned by Warren Buffett, has yet to clarify how or if it will compensate for the loss of production at the Abington facility. The plant was previously cited by federal inspectors for mishandling hazardous waste, adding to a challenging operational environment.
Industry experts weighed in on the ramifications of the fire. Sam Thevanayagam, owner of Parts Life Inc., expressed that market dynamics driven by private equity could hinder the reinvestment necessary for aged manufacturing facilities to keep pace with demands. He acknowledged the complexities involved in sourcing non-available parts, referencing the unpredictable nature of obsolescence and the hurdles posed by military procurement processes.
Chris Scafario, president of the Delaware Valley Industrial Resource Center, echoed the sentiment of caution, stating that while “the supply chain has resiliency and redundancy, there are still patches” where new suppliers might be needed due to the fire’s impact on production capabilities. He also mentioned ongoing developments in additive manufacturing, which could potentially streamline replacement parts production directly aboard military vessels.
The DLA is working on strategies to mitigate the disruptions by creating backup suppliers, particularly for critical components that could be affected by the lack of output from the damaged plant. However, the challenges of navigating military approval processes for new parts production could extend timelines significantly.
The loss of parts from SPS Technologies highlights broader concerns regarding the maintenance and supply for aging aircraft within the military, as manufacturers grapple with obsolescence and the ongoing need for spare parts in operational contexts. The configuration of the aerospace manufacturing landscape and the urgency of managing these supply chain disruptions remain immediate priorities for both military planners and industry stakeholders.
Source: Noah Wire Services
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