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Technology Differentiators In MRO Emerging

New technology like “big data” and analytics will dramatically change the world of aerospace maintenance, repair and overhaul (MRO), according to two well-known competing consultants speaking at Aviation Week's MRO Americas 2016 symposium.

DALLAS — New technology like “big data” and analytics will dramatically change the world of aerospace maintenance, repair and overhaul (MRO), two well-known competing consultants advised April 5, and clues are emerging for how companies can harness the revolution.

For instance, the winning business models in a decade will be those that take control of the veritable fire hose of operational data and turn it back into the design and reliability of aircraft, parts and engines, according to David Stewart, vice president of ICF International.

Companies that wrestle control of the work scope of their projects will also succeed because they can drive up profit margins, he continued, as well as those that control the assets as asset management becomes a greater competitive advantage.

“The world is changing,” Stewart told Aviation Week’s MRO Americas 2016 conference here. “Watch this space; the competitive landscape is changing right under our noses.”

Dave Marcontell, vice president at Cavok Group, a division of Oliver Wyman, agreed almost verbatim. “Technology is changing the MRO landscape,” he said on a panel with Stewart to kick off the conference.


But Marcontell couched differentiators differently, citing recent Oliver Wyman data. More than half of the respondents to a survey by the consultancy said price and customer service would be the top two distinguishing characteristics among MRO providers. Labor rates and OEM network relationships were considered most important by a third of poll-takers.

Nevertheless, both men proffered similar outcomes in much of their respective presentations. Both said the MRO industry should look to the Asia-Pacific region over the next decade for substantial growth, versus North America or even Europe.

Worldwide, Marcontell foresaw 3.9% annual growth over 2016-2026 to a total market worth $98.9 billion. Stewart predicted 4.1% to $96 billion 2015-2025.

This article was originally published on April 5, 2016.

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