Military contractor in Delaware County announces layoffs due to decreasing demand for decoy products.
In a significant development for the local workforce, Alloy Surfaces Company, Inc., a military contractor operating in Delaware County, has announced impending layoffs that could affect approximately 52 employees at its facility in Aston. This announcement comes as the company evaluates the potential closure or sale of its business, raising concerns about the future of the plant and its workforce.
According to a formal notice submitted to the Pennsylvania Department of Labor and Industry, Alloy Surfaces is situated at 121 N. Commerce Drive and is a subsidiary of Chemring Group PLC, an established British defense manufacturing firm. Chemring, which has been in operation since 1905, employs around 2,700 individuals globally and maintains production facilities across multiple countries. It acquired Alloy Surfaces in 1993, intending to bolster its capabilities in the defense, aerospace, and security sectors.
Chemring Group supplies a variety of clients, including members of NATO and major organizations like NASA and SpaceX. Alloy Surfaces, specifically, has earned a reputation for its work with the U.S. military and Britain’s Royal Air Force, producing sophisticated decoys designed to mislead incoming missiles through the use of infrared technology.
Recent communications from Chemring have indicated a marked decrease in demand for Alloy Surfaces’ pyrophoric decoys over the past decade. The company acknowledges that despite robust efforts to engage with its client base, the orders received have not been sufficient to sustain operations. Consequently, Chemring is contemplating “strategic options” for Alloy Surfaces, which may entail either a sale or a complete shutdown following the fulfillment of existing orders by year’s end.
Layoffs are projected to commence on August 30 and may continue until the facility ceases operations, possibly by December. Positions affected by the layoffs include assemblers, chemical equipment operators, and maintenance technicians.
Historically, Alloy Surfaces has experienced fluctuating workforce levels, expanding from around 80 employees in the 1990s to a peak of 616 workers in 2007, during the U.S. military engagements in Iraq and Afghanistan. Notably, the company secured a substantial contract worth up to 7 million with the U.S. Army for military decoys the following year. However, demand has faced decline over the years, leading to previous layoff announcements, including one in 2012 that impacted up to 145 employees, and another in 2021, which saw 63 workers laid off.
The developments at Alloy Surfaces reflect broader trends within the defense industry, suggesting challenges in sustaining contracts and adapting to shifting market demands. As the company navigates these potential closures, the local community is left to grapple with the implications for those laid off and the future of manufacturing jobs in the region.
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