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Aftermarket Trends – MRO Management

23 Jul 2024

Trends in the commercial aviation aftermarket dictate the strategies and technology developments of the MRO industry. With changes in the MRO sector having potential knock-on effects on the efficiency and profitability of airline businesses, it is prudent to closely observe the MRO industry’s movements.

In a recent article for MRO Management, Bernie Baldwin investigates the latest trends in the commercial aviation MRO sector. Beginning by examining the demand profile for MRO services, he talks to Scott Symington, Chief Commercial Officer at AJW Group, to gain his insight.  

 

The general consensus is that demand is back at pre-Covid levels, with MRO businesses across the globe struggling to ramp up capacity to supply the demand to sufficient levels.  

 

Symington adds that there is a growing demand for tailored maintenance services. “This is particularly the case within large-scale power-by-the-hour (PBH) type agreements such as those offered by AJW. This trend stems from operators’ needs for flexibility, agility, and customisation to meet specific customer requirements,” Symington explains. 

 

Elaborating, Symington adds that the demand for tailored solutions is especially strong in the MRO market, where the number of significant suppliers is limited.  

 

AJW Group benefits from our position as an independent company, enabling us to make swift, efficient decisions compared to larger corporate competitors with more complex decision-making processes,” he comments.  

 

Baldwin then asks about currents trends in the cost and availability of spares. Symington observes that the rising cost of materials, with catalogue list prices (CLP) increasing by approximately 12 per cent, has prompted greater regionality in MRO sourcing.

 

OEMs are sharing services globally to address capacity constraints and working closely with customers and logistics partners to identify and overcome supply chain vulnerabilities. Despite these efforts, high prices, delays, and shortages of OEM parts remain a critical issue, potentially disrupting operations and increasing costs,” he warns. 

 

So, what are businesses doing to mitigate these issues? Symington answers that “AJW is taking a proactive approach by leveraging its size and scale for strategic purchasing and collaborating with suppliers to mitigate the impact of price fluctuations and shortages. By building inventory pools ahead of potential pricing reviews, we’re ensuring accessibility and distribution of inventory to our regional customers.” 

 

Next, Baldwin considers the undeniable issues with personnel – both in terms of numbers and training –which have certainly contributed to the increase in shop delays in recent years.  

 

Symington is quick to recall that large parts of the labour force were lost to aviation during and post-Covid. He remarks that companies are implementing a wide range of initiatives aimed at tackling this problem.  

 

A practical solution often involves ramping up the sourcing and training of technicians at the start of their careers, while offering flexible working, part-time consulting, training, and teaching opportunities to staff who are nearing retirement. “This ensures that the technical foundation of the business is strong, while raising up emerging talent with strong peer support,” he states. 

 

Aftermarket Trends – MRO Management

Baldwin moves to the topic of predictive maintenance technologies, asking whether they have the potential to enhance the entire aviation supply chain.  

 

Predictive Maintenance holds great promise for aviation, enhancing aircraft availability and reducing operational costs through data analytics and digital solutions,” Symington enthuses.  

 

However, he also notes some practical considerations, warning that “Its adoption is hindered by regulatory gaps and the lack of a structured framework. Current aviation regulations do not support a defined predictive maintenance structure, creating barriers to its acceptance among stakeholders like regulators, MRO providers, suppliers, and OEMs.”    

 

Industry-wide readiness and collaboration are necessary for successful implementation,” he concludes. 

What consideration are MROs giving to sustainability, Baldwin asks. Symington states that sustainability is a focal point for the industry. Outlining AJW Group’s approach, he confirms that the company’s signing of the UN Global Compact in 2023 underpins a concerted effort to reduce carbon emissions and foster a cleaner, more sustainable aviation sector through collaboration and innovation. 

 

Finally, Baldwin enquires about the use of artificial intelligence in the commercial aviation maintenance. While not all businesses report using AI in its MRO operations, Symington comments that AJW’s component MRO facility, AJW Technique, has implemented dynamic forecasting using AI tools to capture historical parts usage data and construct detailed forecasts. “This is improving shop processing times and achieving fill rates above 90%,” he proudly shares.  

 

Additionally, AJW is trialling RFID tags for tracking AOG shipments, with plans for wider deployment, and advanced predictive inventory modelling systems are being developed for both rotable components and consumables, enhancing inventory accuracy and operational efficiency. 

 

The adage ‘adapt or die’ is pertinent for businesses,” Symington concludes. The digital evolution in our industry is happening; and as far as AJW is concerned - we’re all in.”  

 

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