The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.NEW YORK ( Trefis) -- General Electric's ( GE) aviation arm GE Aviation is one of the biggest manufacturer of aircraft engines in the world along with peers like Pratt & Whitney and Rolls Royce. It manufactures jet engines for both small and large commercial and military aircraft. Widely known for its innovation and technological excellence, GE complements its engine manufacturing skills by providing clients with a wide range of services offerings for GE and CFM engines in service. We believe GE is well positioned for continued success in this segment given the robust outlook for emerging markets and its global network of suppliers that is unrivaled by its peers.
Shift of MRO (Maintenance, Repair and Operations) from OEMs to Suppliers The past few decades have seen the interesting trend of aviation maintenance, repair and operations shifting from aircraft manufacturers to suppliers. As the technology has progressively become more specialized, the customers have started to rely more on individual suppliers to service individual parts as opposed to the single window shop of OEMs. While in 1980, the OEMs were handling more than 80% of the MRO contracts, this figure has been reduced to 20% now. This presents a huge opportunity for GE, as its global footprint and relationship with all the OEMs give it a significant edge to capture share in this market. Click here to find out how a company's products impact its stock price at Trefis Like our charts? Embed them in your own posts using the Trefis Wordpress Plugin.