By: Chris Doan
Posted: April 16, 2008
Denver, Co. – In yesterday’s opening session of the annual Aviation Week Group, North American MRO Conference, Chris Doan, TeamSAI President & CEO, presented the forecast for the world-wide Maintenance Repair & Overhaul (MRO) industry projecting a total revenue of $45.1B in 2008 with continued annual growth averaging 4.3% to yield a total revenue level of $68.6B in 2018. The forecast specifically covers western-built jet aircraft in commercial airline service world-wide.
Despite ominous signs from the airline industry, rising fuel costs and the weak US economy, the outlook for the MRO industry remains strong. In Doan’s presentation, he points out that key drivers include the fact that much of the scheduled MRO work has been queued up by fleet decisions made 5 to 10 years ago, as well as shortages in the work force pushing labor rates up, and the impact of the weak dollar on the international market. Doan went on to point out that fleet growth is predicted to continue at an average annual rate of 4.6% over the next 10 years with ASM growth achieving an even higher average rate of 5.7% over the same period.
From the regional point of view, the North American MRO market value remains the largest at a 37% share in 2008 but will fall to a share of 29% by 2018. The strongest growth market is predicted for the Asia / Pacific region (excluding India & China) with share growth from 13% to 16% over the ten year period. Engine heavy maintenance remains the largest single segment of the market with a 42% share.
The entire presentation includes a detailed discussion of trends and strategies including the impacts of globalization, consolidation, environmental focus, and economics facing the MRO industry. To view a copy of the presentation go to: http://www.teamsai.com/newsfiles/2008_TeamSAI_Global_MRO_Forecast_FINAL_080416.pdf.
TeamSAI is a Denver based practice of strategic & tactical management and operations consulting, serving all aspects of the aviation community including airlines, airports, manufacturers, MROs, and corporate/fractional operations. TeamSAI also produces the annual World MRO Forecast, and is a partner with McGraw-Hill’s Aviation Week Group in their new MRO Prospector web based market development tool for the MRO industry.
TeamSAI, providing better direction through Strategy, Action & Insight. Additional information about TeamSAI is available at www.teamsai.com.