SPS Technologies fire: A New Crisis for Aerospace Supply Chain
The aerospace industry is facing a new crisis following the fire that ravaged the SPS Technologies factory in Jenkintown, Pennsylvania. This incident, which began on February 17 and was fully extinguished by February 22, threatens to exacerbate supply chain issues for giants like Boeing, Airbus, and GE Aerospace, as exclusively reported by Reuters.
A Blow to Aircraft Production
SPS Technologies, a subsidiary of Precision Castparts Corp (owned by Berkshire Hathaway), is a key supplier of titanium fasteners used in aircraft such as the Boeing 787 and the Airbus A350. With a nearly 600,000-square-foot plant specializing in the production of high-strength nuts and bolts for engines, wings, fuselages, and landing gear, its shutdown could significantly impact the pace of commercial aircraft manufacturing.
Both Boeing and Airbus were already facing production delays due to previous supply chain issues. Now, the lack of essential parts from SPS could worsen the situation.
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A Competition for Supply
With the factory closure, major companies in the sector have begun seeking solutions. Boeing and Safran have sent letters to their suppliers assessing the impact of the disruption and exploring alternatives. GE Aerospace has deployed teams to the site and is examining other manufacturing locations and backup suppliers.
Fastener manufacturers have been inundated with requests. According to an industry executive, they received dozens of inquiries in just two days. The shortage of these specialized components could lead to “rationing” by distributors if a quick solution is not found.
Irreplaceable Parts and Lengthy Certification Times
While some fasteners can be sourced from multiple manufacturers, others are exclusive to SPS. Certifying new factories to produce these components can take years, posing an additional risk to the industry.
Kevin Michaels, managing director of AeroDynamic Advisory, warned that “there is significant concern about the large number of single-source fasteners and the unique capabilities of this facility.”
Impact on Boeing and Airbus
Boeing has stated that it is working with its suppliers to assess the effects and minimize the consequences. A shipment destined for the company survived the fire but is currently inaccessible. Meanwhile, Airbus has indicated that it is still too early to gauge the magnitude of the impact but estimates it will be limited for its operations.
On the other hand, Bombardier, the Canadian business jet manufacturer, stated that most of its parts can be sourced from other suppliers, thereby reducing its exposure to the crisis.
What’s Next for the Industry?
The fire at SPS Technologies is just the latest in a series of challenges for the aerospace industry, which is still recovering from the pandemic crisis and raw material shortages. As manufacturers seek solutions, a period of uncertainty has opened up that could affect aircraft production in the coming months.
The sector must accelerate the search for alternative suppliers and streamline certification processes to avoid long-term disruptions. The industry’s ability to adapt will be key to mitigating the effects of this new crisis on the aerospace supply chain.
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