MRO spend will approach US $80 billion in 2022 and come close to matching pre-COVID levels in 2023, but the industry faces significant challenges, says Oliver Wyman's Annual MRO survey.
"The MRO industry has displayed remarkable resilience during the past two years, but it may not be enough as it faces a new set of challenges around labor, inflation and sustainability," said Brian Prentice, a partner with Oliver Wyman.
The lack of adequate number of technical staff has been cited as the top disruptor for the MRO industry over the next five years. Some 80% of North American respondents said that finding mechanics and technicians has become challenging, with Europe (65%) and other geographies (79%) feeling a similar strain. The challenge of securing labor has become critical, with more than half of survey respondents reporting that the lack of labor is already beginning to constrain growth – even with demand not yet fully at pre-pandemic levels.
Survey respondents ranked labor/material cost management as the second top disruptor facing the industry. Some 60% of respondents anticipate that materials costs will increase by more than 5%. North American respondents expect the largest inflation in labor costs, with 59% expecting increases of 5% or more.
"In an inflationary environment with a tight labor market, MROs over the next few years will be looking for any way to offset labor and material costs," said Derek Costanza, a partner with Oliver Wyman. "To complicate matters, the industry will be trying to do this when consumer travel demand is rebounding rapidly."
Almost all (90%) survey respondents indicated that sustainability is a priority for MRO-related activities. More than three-quarters expect sustainability to become an area of high focus and report that their companies have sustainability targets in place.
"At a time when the concept of how and where people work has radically changed, MRO leaders need to engage and attract a new generation of workers -- who value quality of life and are very concerned about climate change. It will be a tough sell," added Prentice.
ASELSAN has inaugurated a new office in Muscat, the capital of Oman, as part of its efforts to expand its…
Embraer Executive Jets has signed a purchase agreement with Flexjet for a fleet of business aircraft, including the Praetor 600,…
Lufthansa Group Airlines have introduced a new feature allowing passengers to share Apple AirTag location data to assist with baggage…
Assac Networks, a cybersecurity firm specialising in securing communication devices for government, defence, and commercial organisations, has secured a contract…
Komodo International Airport in Labuan Bajo, East Nusa Tenggara (Nusa Tenggara Timur / NTT) province, Indonesia, is set to introduce…
The Philippines has submitted to Israel a new shopping list for defence systems. Israel Aerospace Industries (IAI) is reportedly in…
Israel's laser-based Iron Beam air defence system could reduce the number of interceptors needed for close-range rocket defense by up…
While Israel is in the midst of an effort to rebuild its stockpile of different types of ammunition that have…
In Q4 2024, Vietjet's aviation revenue reached VND 19.776 trillion (approx. SGD 1.061 billion), a 36% year-on-year (YoY) increase, while…
Rheinmetall delivered the first Boxer Skyranger 30 cannon-based air defence vehicle to the Bundeswehr at the end of January, 2025,…
L3Harris Technologies has successfully conducted the first flight of its all-digital electronic warfare (EW) suite, Viper Shield, on a single-seat…
Princess Anne, the United Kingdom’s Princess Royal, has officially opened a new electro-optics facility at Thermoteknix, a company based in…
The French Defence Procurement Agency (Direction Générale de l'Armement / DGA) has entered into a 24-month contract with Airbus Defence…
In December 2024, Integrated Surveillance and Defense (ISD), in partnership with the U.S. Naval Air Systems Command (NAVAIR) and Indonesian…
Veridos will once again supply the technology for identifying participants at the Munich Security Conference (MSC), scheduled to take place…
Rheinmetall has secured a major contract to advance the digitalisation of the Bundeswehr’s communication infrastructure. The company, through its subsidiary…
Lufthansa Group has begun the integration of ITA Airways into its network, with several key benefits now available to passengers.…
The Indonesian Air Force (TNI-AU) is set to receive six Rafale fighter jets from France in 2026, Air Chief Marshal…
The Royal New Zealand Air Force (RNZAF) has retired its fleet of C-130H Hercules aircraft after 60 years of service.…
Lockheed Martin has delivered the first F-16 Block 70 fighter jet to Bulgaria, marking a significant advancement in the country’s…
BIRD Aerosystems has received a follow-on order for the company's Aeroshield missile protection system, which includes the SPREOS (Self Protection…
The U.S. Navy has awarded Lockheed Martin a $383 million contract modification to continue the development of the next generation…
Cohort plc, an independent technology group, has completed the acquisition of EM Solutions, an Australian company specialising in satellite communication…
The Royal Thai Navy (RTN) has outlined plans to acquire four new frigates to strengthen its fleet, with preparations underway…
Aselsan, Türkiye’s leading defense company, signed export contracts worth over 1 billion USD in 2024, a record high figure in…
L3Harris Technologies' Chief Financial Officer Ken Bedingfield, 52, took over as President, Aerojet Rocketdyne, effective Monday. He succeeds Ross Niebergall,…
ZeroAvia has reached consensus on the Certification Basis relating to its 600kW electric propulsion system (EPS) with the Federal Aviation…
ASQS, a provider of integrated safety and quality management software for the aviation industry, has appointed Florian Lis-Srajer as Deputy…
As Tehran and Moscow continue military cooperation, Iran has acquired advanced Sukhoi-35 fighter jets from Russia to bolster its military…
Israeli company Smartshooter has unveiled its latest counter-UAS (C-UAS) solution: Smash Dome. The lightweight, portable, and adaptable solution supports both…
Headquartered in Singapore with reporters spread across all major regions, GBP Aerospace & Defence is a leading media house that publishes three publications that serve the aerospace and defence sector - Asian Defence Technology, Asian Airlines & Aerospace and Daily News. Known industry-wide for quality journalism, GBP Aerospace & Defence is present at more international tradeshows and exhibitions than any other competing publication in the region.
For over three decades, our award-winning team of reporters has been producing top-notch content to help readers stay abreast of the latest developements in the field of commercial aviation, MRO, defence, and Space.
Copyright 2024. GBP. All Rights Reserved.
Home Defence & Security Space Commercial Aviation Maintence Repair & Overhaul Daily News Events About Us
2025 GBP all rights reserved.