MRO Trends To Look For In 2023

MRO capacity shortages will not be fully remedied in 2023 because competition for available slots is likely to remain strong in all major global regions. This will push MROs to grow capacity and airlines to reevaluate maintenance strategies.

Extended lead times and parts shortages still plague the engine MRO market, so OEMs will try to ramp up their aftermarket support to coincide with engine production rates to aid aircraft-makers’ raised targets.

With escalating costs for materials and parts being passed on to customers by OEMs, MROs and airlines will contribute to greater demand for used serviceable materials—driving up pricing—and will turn to parts-manufacturer-approval and designated-engineering-representative components.

As OEMs aim to increase production rates to service backlogs, supply chain consolidation is all but inevitable and could begin as early as 2023. Smaller suppliers could be swallowed up by larger players or even cease operating due to lulls in the aviation supply chain.

As companies seek new ways to minimize risk, expect MRO providers to look at moving their supply bases closer to their primary work areas. They also might start dual sourcing—or ordering the same parts and materials from more than one supplier.

While some airlines are not expected to survive into 2023, with multiple startup airlines forming and beginning operations in 2023, maintenance providers should see new business opportunities.

Rising inflation led to higher parts and labor costs in 2022, but expect that to be felt more profoundly in 2023. A premium rate in workforce compensation and incentives also is expected, particularly in North America and Europe.

Some carriers are still looking to offset significant overhaul costs while others remain undecided about the long-term future of their fleets, so the penchant for leasing green-time engines should continue through the first half of 2023.

With an aging MRO workforce and staff losses during the COVID-19 pandemic, expect the industry to double down on technology investments in 2023 to address efficiency shortfalls.

Merger and acquisition activity has not picked up at the rate expected since early 2020 because of potential sellers’ strong financial positions. However, as the landscape changes, look for some significant deals in the airframe MRO and component-repair segments.