RESEARCH REPORT

In brief

In brief

  • Growth is back on the agenda. Half of aerospace executives anticipate it over the next 18 months.
  • Recovery will be uneven throughout the regions. The public’s willingness to travel will be a key driver.
  • Service providers need to be ready to meet airline executives’ cost concerns and improve MRO logistics performance.
  • As of early 2021, only 57% of aerospace and defense executives believe that their supply chain strategy is linked to customer value propositions.


New growth priorities for MRO

As they’ve battled through the unprecedented disruptions of COVID-19, airline executives have, up to now, focused on simply keeping the lights on. They’ve prioritized the safety of their passengers and people, and on cost containment. But as 2022 approaches, those priorities are changing. Anticipated growth is shifting airline MRO priorities towards making sure that aircraft are available, enhancing vendor contract management and improving supply chain performance.

1. Rethink airline priorities

Work back from customer priorities to drive a service-centric mentality and better anticipate what types of work could be needed as a new fleet mix emerges. Neither tried and tested strategies nor a single technology will drive significant improvements. New customer expectations will therefore need to be met with alternative approaches.

2. Retool operations

Embrace a digital approach with targeted investments that immediately impact operations and increase the flow of key data (both internal and external) that can be transformed into insights.

3. Reprogram project management and supply chain

Improving project management and supply chain/logistics are readily accessible routes to differentiate offerings and increase competitive edge. A platform approach for parts intelligence and program management can help optimize capacity and make facilities ready to serve a new fleet mix.

4. Reconnect the workforce

It’s essential that staff certifications and digital skills are brought up to date as quickly as possible. Solutions such as connected technicians can help drive differentiated customer experiences while increasing workforce quality and efficiency, as well as enabling effective knowledge transfer.

Redesign to deliver on expectations

MRO executives have bold goals to build upon airline industry recovery over the next three years. These include expanding into adjacent MRO services, increasing digital skills to better leverage aircraft data and addressing their skills shortage. Selectively redesigning the MRO delivery organization with a focus on airline priorities could be crucial to achieve these goals and more.

John Schmidt

Senior Managing Director – Aerospace & Defense, Global


Jeff Wheless

Principal Director – Aerospace and Defense, Accenture Research

MORE ON THIS TOPIC

Aerospace and Defense Technology Vision 2021
Commercial Aerospace Insight Report 2021

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