This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

3-D Technology May Lower Cost Of Aviation Replacement Parts

Use of 3-D printing in the aviation industry will most likely be limited in the near-term to replacement parts, rather than proprietary spares, according to an annual survey by Oliver Wyman.

In the 2014 MRO Survey, 60 percent of respondents say the biggest benefit to the industry of the budding adaptive manufacturing technology will be a lower cost of replacement parts, and 54 percent say the technology could cut investment in inventory. Only 40 percent of respondents expect the technology will create another option for higher-value spare parts.

“While 3-D printing in any industry has the potential to erode existing protections of proprietary technology, the survey results suggest industry participants expect original equipment manufacturers to find ways to protect their technology from adaptive manufacturing by others,” said Oliver Wyman Partner Chris Spafford, who led the survey on aviation maintenance, repair, and overhaul.

This year’s survey also shows M&A is heating up for independent maintenance companies. Most of the deal activity is from larger MROs and private equity investors.

The survey further confirms that US airlines are repatriating airframe maintenance, moving work back to North America from overseas. In this year’s survey, 60 percent of airline respondents say they are willing to pay up to a 5 percent more for a domestic provider, and 20 percent indicate a willingness to accept up to 15 percent higher costs.

That’s good news for aviation mechanics: 32 percent of the North American MROs surveyed say they are hiring to expand operations, and 48 percent are hiring to sustain headcount.

To view the entire report, go to MRO Survey 2014 Findings.

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 senior executive and C-suite positions and represent a global cross section of the industry.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,928.20 -142.20 -0.79%
S&P 500 2,089.46 -25.03 -1.18%
NASDAQ 4,939.3270 -77.6020 -1.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs