Aerospace industry scrambles to deal with fallout from huge US factory fire

Boeing and other top aerospace firms are scouring their supply chains to determine their exposure to a major fire last week at a Philadelphia-area parts factory that has set off alarm bells across the industry, people familiar with the matter said. The days-long fire at SPS Technologies' century-old factory could put pressure on the industry's already strapped supply chain. GE Aerospace and others are now trying to figure out who can replace the factory's lost production and also identify who has spare parts, the people said. Both Boeing and France's Safran contacted suppliers asking about the potential effects, according to letters seen by Reuters. The fire, which caused no fatalities, is the latest in a string of supply setbacks in aerospace. This stadium-sized facility was crucial to the production of key parts, and some analysts warned that its loss could further strain the industry's ability to boost output. SPS products include titanium fasteners of the kind used to assemble carbon-fiber jets like the Boeing 787 and Airbus A350. Some fasteners produced at the factory are also highly specialized and not easily sourced by other manufacturers, analysts and industry executives said. Boeing and European rival Airbus were already facing supply snags as they try to boost airplane output. "There's only so much inventory of this out there, and that something's going to have to change really fast to avoid potential (problems) that could affect production rates," said AeroDynamic Advisory Managing Director Kevin Michaels. In a letter sent to suppliers following the February 17 fire seen by Reuters, Boeing asked the companies whether they regularly used parts from the SPS factory, located in Jenkintown, and to explain the impact if SPS could not ship parts that were ordered.<br/>