Oliver Wyman MRO Survey: New Aviation Technology Could Dramatically Change MRO Competitive Landscape Shifting or Reducing Ind...
April 13 2015 - 9:00AM
Business Wire
By 2020, most companies in the aviation maintenance, repair, and
overhaul (MRO) sector will use new technology in a way that
fundamentally changes how the industry works, cutting or
re-distributing industry revenue by 15 to 20 percent.
Oliver Wyman released its annual MRO Survey today at Aviation
Week’s MRO Americas Conference. This year’s survey, which queried
more than 100 senior aviation executives, investigates the business
impact of innovation and new technologies coming on line.
MRO providers need to invest in new capabilities over the next
few years as manufacturers deliver next generation aircraft and
engines with new technology and services.
According to results of the survey, the use of big data in the
aviation industry will become pervasive, with the rise of aircraft
health monitoring and predictive maintenance systems. The way MRO
providers touch the aircraft will also change with wearable and
other new repair technologies and additive manufacturing (3-D
printing). (See chart on MRO technology priorities below).
Meanwhile, most aviation companies will have to manage overhauls of
their aging IT backbones that inhibit efficient working
environments and integration with newer technologies.
Lead survey author and partner Chris Spafford anticipates these
advances could spawn new business models. He says, “These
technological advances could amount to a redistribution of up to 20
percent of value among current industry players, or $10 billion to
$15 billion, and entice new, non-traditional competitors to enter
the MRO space to siphon off high value revenue opportunities.”
To compete as technology changes, MRO providers will have to
overcome their own reluctance to innovate. Seventy-six percent of
survey respondents said their organizations have clear visions and
growth strategies, but most gave their companies failing grades on
the ability to translate identified opportunities into executed
operational plans. (See the chart MRO innovation below).
Disruptive change will challenge managers to think beyond
standard practices and commit time and resources to choose
technologies and develop supportive business models. Within MROs,
there is a need for clarity, purposeful analysis, and opportunity
selection to capitalize on innovation.
To view the entire report, go to: Oliver Wyman MRO Survey
Findings 2015
About the MRO Survey
Going on its second decade, the annual MRO survey produced by
Oliver Wyman is an industry standard for information about changing
trends in the MRO sector. The survey queries leaders across the MRO
industry, including top executives from airline operations,
procurement and engineering departments, captive and independent
maintenance providers, OEM aftermarket divisions, and financing and
leasing professionals. Our respondents are overwhelmingly in
C-suite and senior executive positions and represent a global cross
section of the industry.
The MRO Survey findings also include forecast data from our 2015
CAVOK Fleet and MRO Market Forecast (see
www.PlaneStats.com/betterinsight for more information about the
forecast data).
About Oliver Wyman
Oliver Wyman is a global leader in management consulting. With
offices in 50+ cities across 26 countries, Oliver Wyman combines
deep industry knowledge with specialized expertise in strategy,
operations, risk management, and organization transformation. The
firm's 3,700 professionals help clients optimize their business,
improve their operations and risk profile, and accelerate their
organizational performance to seize the most attractive
opportunities. Oliver Wyman is a wholly owned subsidiary of Marsh
& McLennan Companies [NYSE:MMC]. For more information, visit
www.oliverwyman.com. Follow Oliver Wyman on Twitter
@OliverWyman.
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Oliver WymanBirgit Andersen, +1
214-758-1806birgit.andersen@oliverwyman.com
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