The chairman of the Montgomery County Board of Commissioners on Friday sent a letter to Warren Buffett asking the billionaire investor for financial assistance to help workers facing layoffs at SPS Technologies, the aerospace parts manufacturer in Abington that suffered a devastating four-alarm fire last month.
The fire, which took five days to extinguish, triggered school closures, a voluntary evacuation order, and eventually, parts of the facility to be demolished. No deaths or serious injuries were reported.
The 105-year-old company produced specialized metal bolts and fasteners for clients such as Boeing, NASA, and the military. It stored chemicals used in its manufacturing processes that raised significant concerns, but no contaminants from the blaze have been found in the air or water supply, according to government environmental tests.
Buffett is the chairman and CEO of Berkshire Hathaway, which owns Precision Castparts, the parent company of SPS Technologies.
“After decades of service — the average worker has been at SPS Technologies for about 25 years — SPS management offered its employees four weeks of compensation. And, as it stands today, it appears that approximately half — 250 employees — are facing immediate layoff,” Neil K. Makhija, chairman of the Montgomery County Board of Commissioners, said in his letter.
“SPS workers have taken great pride in the company as the sole supplier of fasteners for Blackhawk helicopters, F-15 fighter jets, other military aircraft, as well as the Boeing 737 and 787. It was a great business — and still can be. But it needs substantial investment to recover, and so does the immediate surrounding community,” Makhija said.
Makhija pointed out that Berkshire Hathaway has a reported cash stockpile of $334 billion.
“As you look for meaningful ways to invest Berkshire’s substantial cash reserves, I would suggest you could do so right here: in your own company, in the workers of SPS Technologies, and in Montgomery County, PA,” Makhija said.
Makhija later added more specifically, “I hope you will also provide longer-term, temporary pay and benefits for these employees who have lost their jobs through no fault of their own.”
In an emailed statement Friday evening, SPS Technologies acknowledged that it had decided to make “employment adjustments” and that employees were notified earlier in the day. The company did not say how many employees were affected.
“Nearly a month after the devastating fire at our plant and after intense analysis of what areas of the location were severely impacted, SPS Technologies has a clearer picture of our personnel needs,” the company said.
“Regretfully, we will have to make employment adjustments to align with those product lines and volumes the Company can still support. We notified our employees on a call earlier today,” SPS Technologies said.
“We also let the employees know that the Company will be extending full base pay to all active employees through May 18, 2025, and health and welfare benefits will be extended through the end of May. We continue to work with state and local resources to offer career fairs and other support in the weeks ahead. We appreciate the support of the community and offers of assistance,” the company said.
Makhija said in his letter to Buffett that Montgomery County “has been working daily with your SPS subsidiary to support its employees and help with relocation. We are prepared to continue doing so with your cooperation. But we also hope for deeper investment, knowing that a rounding error in Berkshire’s portfolio could mean everything to the families affected by this tragedy.”
