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.

THIS CONTENT REQUIRES SUBSCRIPTION ACCESS

You must be a paid subscriber to access "American MROs Seen As Competition To China".

 

Current Aviation Week Intelligence Network (AWIN) enterprise and individual members: please go to http://awin.aviationweek.com for access.

 

Not currently a subscriber? Click on the "Learn More" button below to view subscription offers.

Already registered? here.