This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3-D Technology May Lower Cost Of Aviation Replacement Parts

Stocks in this article: MMC

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs