Howmet favors long-term deals as parts demand grows after US factory fire

• March 18, 2025

Howmet Aerospace's HWM CEO said on Tuesday the company is prioritizing long-term deals as it sees fresh demand from customers after a major fire at a Philadelphia-area parts factory hit supply, roiling an industry set to make more planes.

Howmet CEO John Plant told Bank of America's Global Industrials Conference that the Pittsburgh-based supplier would invest in expanding capacity for customers that will give it long-term business.

The February fire at SPS Technologies' century-old factory, which produced specialized fasteners for planes, is putting pressure on the industry's already strapped supply chain.

"I have no interest in taking these costs on to only have to delete them later in the year," Plant said. "That doesn't make economic sense at all."

Reuters reported last month that U.S. planemaker Boeing BA and other top aerospace companies were scouring their supply chains to determine their exposure to the fire at the stadium-sized facility, which is part of Berkshire Hathaway-owned BRK.A Precision Castparts Corp.

Boeing and European rival Airbus AIR are increasing plane production, with the U.S. planemaker trying to bounce back after output slumped last year due to multiple crises. Suppliers are bracing for higher costs on materials such as aluminum used in aircraft due to an escalating U.S.-led trade war.

Plant said Howmet, which has the necessary certifications to produce some of the parts made at the SPS factory, is in the process of responding to customers for parts following the fire. He added that Howmet would pass on to customers any higher costs it would face for imported materials.

The CEO said Howmet would support Boeing's plans to hit a monthly production rate of 38 and beyond for its strongest-selling 737 MAX planes.

Plant praised Boeing CEO Kelly Ortberg's decision to relocate to Seattle after taking the helm last year.

"The fact that he's there and you see pictures of him on the shop floor having a more hands-on approach, that's very welcome to see," Plant said.