Like the broader aviation market, the aviation maintenance, repair and overhaul (MRO) sector, is enjoying a period of prosperity with analysts predicting another bumper year in 2018. Oliver Wyman’s MRO report forecasts total MRO spending to rise to $114.7 billion from $77.4 billion in 2018 – an increase of 48% on an average four percent compound annual growth rate (CAGR). One of the report’s main observations is the continuing scarcity of technicians trained to service both the older and newer model aircraft, which it says will put pressure on payrolls over the next decade.
Almost two thirds (60%) of MRO companies surveyed by Airline Economics stated that they intend to increase their headcount in 2018, with the majority indicating that they are hiring for growth purposes (the full survey will be published shortly in Airline Economics magazine). Respondents indicated also that hiring skilled aircraft engineers remains a challenge in the current marketplace, with intense competition for the most talented engineers and technical expertise driving up salaries.
Despite the many apprenticeship schemes established by the leading MRO companies, respondents comment that start-up companies and OEMs are soaking up the brightest talent coupled and refer to a general reluctance from graduates to enter the industry, which is maintaining the pressure on staffing levels.
