Newer narrow-body aircraft are estimated to be about 15%-20% more efficient than the versions they are replacing. These aircraft will have longer maintenance intervals and lower heavy maintenance spend, simply because they are designed better and use better materials.

5. Airline MRO practices are getting more efficient

Overstocking might not be the best thing for an airline, but it's a pretty sweet gig for a supplier. Unfortunately, long term service contracts by airframers and OEMs, facilitated by services like predictive maintenance, airlines are now becoming more emboldened to make the most out of their initial spares.

This trend in lower spares demand has been cooking for several years, as it was reported by Roland Berger back in 2015. Fast forward four years, and a similar report shows that suppliers are still under pressure from airlines cutting costs, doing more in-house and shoring up their supply chain.

6. Staff shortage and supply chain bottlenecks

The last, and arguably the most significant challenge that the aftermarket will face in the coming years, is simply a lack of qualified staff to operate the global aviation machine. The looming threat of labour shortages in material management and maintenance could lead to bottlenecks along the supply chain.

Rapid advancement in aircraft technology and data-driven software analytics is already driving demand for technicians that can cross the gap between digital and mechanical expertise. This same demand can be seen in material management, where new technologies are requiring further knowledge and understanding of subjects like additive manufacturing, enhanced GSE, and inventory management.

The big picture

Looking at the challenges presented above, it's safe to say that none of them crept up on the aviation aftermarket unaware. In fact, many of these challenges are as a result of parts suppliers not having the same resources as larger OEMs to keep pace with the steady march of technological progress. Regardless, progress is relentless, and aftermarket suppliers are going to need to address the challenges we stated above head-on to maintain a competitive presence in the market.

Digital services

Quick Links

Quick Links

Legal Links

Breaking down the aviation MRO forecast for the new decade