Why aviation’s MRO industry could do with more ‘local for local’

The aviation industry, a cornerstone of global connectivity, relies heavily on a robust and efficient Maintenance, Repair, and Overhaul (MRO) supply chain.

However, recent global disruptions, from COVID-19 to geopolitical tensions and industry-specific material issues, have exposed vulnerabilities within the supply chain, highlighting the urgent need for a more resilient - and sustainable - approach for doing business.

First, what do we mean by resilience and sustainability when it comes to aviation MRO? A resilient MRO supply chain is one that can withstand shocks and disruptions, adapting to changing circumstances while maintaining operational continuity.

Whether facing parts shortages, logistical delays, regulatory shifts, or environmental impacts, a resilient supply chain ensures continuous, cost-effective service to the end-user. Separately, a sustainable MRO supply chain minimizes environmental impact, promotes social equity, and ensures long-term economic viability.

$100 billion in 2024

It is about responsible resource management, aligning with industry best practices and goals for carbon reduction and efficient operations.

The aviation MRO spending has returned to pre-pandemic levels and is expected to cross $100 billion in 2024, with engine specific MRO responsible for the largest spend at 45% of total spend. The MRO market is expected to grow at a compound annual growth rate (CAGR) of 3%-4% over the next decade, driven by the need for newer and greener aircraft, advancements of the related technologies, increasing fleet sizes and rising regulatory standards for safety and environmental compliance.

To sustain this growth, the MRO industry must shift fundamentally towards resilient and sustainable supply chain models – which require proactive strategies built on agility and collaboration coupled with a commitment to long-term sustainability.

Power up with digital support

The ability to adapt quickly to change is paramount for a resilient MRO sector, which demands embracing digital tools powered by IoT, digital twins, machine learning and AI. These technologies allow MRO providers to proactively monitor parts, anticipate maintenance needs, and make smarter, faster decisions. Just as vital is diversifying the supply chain - both geographically and by working with multiple suppliers. This mitigates the risk of disruptions while sparking a competitive environment amongst the suppliers. And while global sourcing has its merits, the MRO sector should embrace a more ‘local for local’ approach wherever possible.

Go heavy on regional

Regionalizing supply chains, even if it means slightly higher upfront costs, this approach ultimately translates into a greater resilience and supply certainty – a worthwhile investment considering the crippling costs of downtime and disruption.

Beyond agility, collaboration is a powerful enabler of resilience. Transparent and continuous communication across the entire MRO ecosystem – from service providers and airlines to OEMs and suppliers – is crucial for alignment and preparedness.

Shared goals, such as minimizing downtime, improving parts availability, and ensuring regulatory compliance, must be established to drive collaborative decision-making that benefits all parties. Critically, integrated digital systems, an area ripe for improvement in the current MRO landscape, will ensure all stakeholders have access to real-time information, facilitating rapid decisions during disruptions.

There is the sustainability push too

Finally, long-term sustainability is a business necessity. Sustainable aviation MRO seeks to balance operational efficiency with environmental impact, ensuring maintenance operations contribute positively to both industry resilience and broader societal goals.

This requires embracing circular economy principles – recycling, remanufacturing, and reuse – to reduce waste and conserve resources, extending the lifespan of components and minimizing the need for new materials. Underpinning all of this is a commitment to regulatory compliance and adherence to environmental standards, ensuring MRO operations are not just resilient but responsible.

Of course, all this alone would not be enough, especially with the industry facing a growing talent gap, including in supply chain. Attracting young people to the MRO sector, particularly women, demands concerted and more inclusive efforts to showcase the exciting technological advancements and rewarding career paths that industry offers.

Recent projections estimate the need for 716,000 new maintenance technicians globally by 2043, including 63,000 in the Middle East. This would require going beyond traditional recruitment methods and embracing digital outreach, educational partnerships, and mentorship programs that inspire and develop the next generation of aviation professionals.

The challenges facing the MRO sector are complex and constantly evolving. Yet, by embracing collaboration, investing in talent, and proactively building resilience into every facet of the ecosystem, we can secure a sustainable future for the aviation industry.