As China's economy expands, so do its labor rates, putting some American MROs in a position to compete pretty favorably against the Chinese, which was not the case five years ago, says Ken Aso, associate partner at Oliver Wyman. The money is in the engines; powerplants represent 46% of all MRO spending, according to TeamSAI. While airframe maintenance costs break down to about 70% labor and 30% material, engine MRO is the opposite—70% material and 30% labor.

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