LABOUR SHORTAGE AND MATERIAL COSTS THREATEN MRO INDUSTRY'S GROWTH

Ever since the start of the pandemic, the MRO (Maintenance, Repair and Overhaul) industry has faced many challenges that had an impact on many industry players. According to Anca Gosling, Director of Training Content and Development at Aeroclass, an aviation digital learning platform, despite hurdles, the industry is expected to reach new heights in the coming years.

- SILVIJA JAKIENE

The current state of the MRO market indicates a remarkable recovery, with a projected market value of $94 billion in 2023, an increase of over 20% from the previous year. This growth signifies a return to pre-pandemic levels, as the global fleet has recovered by 98% whilst passenger traffic reached 90% by the beginning of 2023. However, Gosling points out that amidst this positive outlook, the industry further continues to face challenges that impede its rapid development.

One of these challenges is effective labour and material cost management as material costs are expected to experience inflation of approximately 6.7% annually over the next couple of years. Gosling explains that to counteract this, MROs are focusing on increasing the usage of used serviceable material (USM). With retiring current-generation fleets, there is ample opportunity to salvage materials, while the commonality between current and next-generation fleets facilitates USM adoption.

Another significant challenge lies in the shortage of qualified staff, particularly maintenance technicians. Anca Gosling explains, "As demand for MRO services rebounds, the industry has had to rapidly scale up production and maintenance operations with fewer employees.