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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 Wyman
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