Aircraft Maintenance & Repair Operations (MRO) provide commercial and military aviation maintenance, repair and overhaul services. According to First Research, total U.S. revenue for commercial MRO services is forecasted to be approximately $23 billion in 2015. ARSA (Aeronautical Repair Station Association) reports that there are about 4,000 FAA certified maintenance facilities in the U.S. with over 200K employees. The global aviation maintenance market is expected to experience 50% growth, from $57 billion in 2014 to over $86 billion in 2024. Revenues for the domestic engine repair segment of the overall aircraft repair industry are expected to grow at an annual compound rate of approximately 5% from 2015-2019.
While the industry outlook is positive, MRO services are still dependent on the aviation industry, which experiences cyclical demand. Independent MRO’s face strong competition from in-house maintenance operations as well as service divisions of aircraft manufacturing companies. Winning contracts will mean that these MRO’s must be cost effective alternatives for airlines and cargo shipping companies, which constitute the bulk of their potential business.