MRO Outlook 2025: As the aviation industry faces labour shortages, supply chain disruptions and rising costs, the MRO sector must adapt through collaboration, digital transformation and sustainable practices. By embracing innovation and stronger partnerships, the industry can build a more resilient and efficient future.

The aviation maintenance, repair and overhaul (MRO) industry faces a critical juncture in 2025. As global air travel continues its post-pandemic resurgence, the demand for MRO services is surging. However, the industry is grappling with two significant constraints: labour shortages and supply chain disruptions. Experts agree that the only way for the sector to become more resilient is if it embraces a collaborative approach: sharing resources, information and best practices across the value chain.

In this article, we explore the key challenges and opportunities shaping the MRO industry in 2025.

Labour shortages: A growing concern

The aviation industry continues to struggle with an ageing workforce and a lack of skilled technicians. Despite increasing demand for aircraft maintenance, the pipeline of new talent remains insufficient. IATA predicts that the aviation industry will need around 800,000 new pilots by 2039. Boeing’s Pilot and Technician Outlook predicts an even greater demand, projecting the need for 674,000 new pilots, 716,000 maintenance technicians and 980,000 cabin crew members globally by 2042.

A Global Fleet And MRO Market Forecast from Oliver Wyman states: "Where pre-COVID the forecast expected a fleet of more than 39,000 aircraft by 2030, we now do not anticipate reaching that size until 2036 – essentially six years of lost growth for the industry."

Contributing factors include:

A wave of retirements among experienced mechanics and engineers, leading to a knowledge gap that is difficult to fill with new recruits.
A slow pace of training and certification for new entrants due to extensive regulatory and compliance requirements, causing delays in getting qualified personnel on the job.
Competition from other high-tech industries, such as automotives and renewable energy, which attract talent with better pay, benefits and work-life balance.
Limited awareness among younger generations about career opportunities in aviation maintenance, necessitating stronger outreach and recruitment efforts by industry leaders.

Opportunities: MRO providers can partner with technical schools and universities to attract and train new talent while raising awareness of aviation maintenance as a career path. Accelerated training programs can help fast-track certification and fill workforce gaps more quickly. Automation in maintenance processes, including robotics and AI-driven diagnostics, can reduce reliance on manual labour and improve efficiency. Offering competitive salary packages and career advancement opportunities will also help retain skilled professionals and prevent them from seeking opportunities in other industries.

Supply chain disruptions: Spare parts in short supply

Aircraft maintenance relies on a steady flow of components, but the MRO sector has seen widespread supply chain bottlenecks due to:

Persistent shortages of critical components – including engines, avionics and landing gear – due to manufacturing delays and raw material scarcities.
Geopolitical instability affecting raw material sourcing – particularly in regions that supply essential metals and composites used in aircraft parts.
Logistical delays in transportation and shipping – exacerbated by port congestion, trucking shortages and fluctuating fuel costs – leading to longer lead times for essential repairs.
Over-reliance on single-source suppliers for certain aircraft components, making it difficult to find alternative vendors when supply chains are disrupted.

Today, the backlog of unfilled aircraft orders stands at over 17,000 jets – its highest ever. Given current rates of production, those orders will take 14 years to clear – twice as long as airlines had to wait prior to 2019.

Opportunities: Joint procurement strategies can help mitigate these shortages by allowing industry players to pool resources and negotiate better terms with suppliers. The adoption of 3D printing for non-critical aircraft components can reduce dependence on traditional manufacturing and shorten lead times. Diversifying suppliers can help create a more flexible and resilient procurement system, while strategic stockpiling of high-demand parts can buffer against unexpected shortages and minimise maintenance-related delays.

Rising costs and inflation

Higher costs for labour, raw materials and shipping have squeezed MRO margins. Airlines, already struggling with operational costs, are looking for more cost-effective solutions, putting pressure on MRO providers to streamline processes and optimise inventory management. According to IATA, expenses are expected to grow by 4.0 percent to $940 billion.

The contributing factors include:

Increased wages for maintenance personnel due to labour shortages, forcing MRO providers to rethink compensation strategies while maintaining profitability.
Rising prices of essential raw materials like titanium and aluminium, which are critical for aircraft manufacturing and repairs.
Increased fuel costs affecting logistics and transportation, further driving up expenses associated with spare parts distribution.
Inflationary pressures forcing airlines and MRO providers to renegotiate contracts and find cost-saving solutions, often leading to delays in essential maintenance work.

Opportunities: Collaboration with aircraft manufacturers to develop more modular and interchangeable components can simplify repairs and reduce the need for specialised parts. Predictive maintenance and AI-driven diagnostics can optimise maintenance schedules and resource allocation, cutting down unnecessary expenditures.

Sustainability and regulatory pressures

Stricter environmental regulations and the growing emphasis on sustainable aviation practices are pushing MRO providers to adopt greener maintenance strategies.

Challenges include:

Compliance with evolving environmental laws requiring reduced emissions, waste management improvements and the use of eco-friendly materials in maintenance processes.
High initial costs of transitioning to greener technologies, such as sustainable aviation fuels (SAF) and energy-efficient maintenance facilities.
The need for new infrastructure and operational adjustments to implement circular economy principles, such as aircraft recycling and component refurbishment.
Pressure from airlines and regulators to integrate sustainability without significantly increasing operational costs.

Opportunities: However, sustainability also presents significant opportunities. MRO facilities that use renewable energy and advanced waste reduction techniques can become industry leaders in eco-friendly maintenance. The use of alternative materials and bio-based lubricants can reduce the environmental impact of aircraft repairs. Digital tools that optimise fuel efficiency and engine performance contribute to lower carbon footprints, benefiting both MRO providers and airlines.

Conclusion: The future of MRO depends on adaptability

The aviation MRO industry stands at a crossroads. Labour shortages and supply chain disruptions have exposed vulnerabilities, but they have also created opportunities for innovation and collaboration. By embracing digital transformation, workforce development and stronger partnerships, the industry can build a more resilient and efficient MRO ecosystem in 2025 and beyond.

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MRO Outlook 2025: Is collaboration the answer to challenges and opportunities in a shifting landscape?