1 Nov 2023
As we approach the end of the year, the aviation industry continues to grapple with supply chain issues, new fleet delivery delays, skilled labour shortages, and material supply. How are these challenges impacting logistics and MRO companies such as AJW, and are solutions emerging as stakeholders adapt their business operations?
Industry experts agree that the aviation industry is seeing immense growth, leaving businesses with a more optimistic glimpse into 2024 as flight hours return to pre-Covid levels. The effect of this recovery comes with the need for an increase in production rates across the globe. The challenge currently being faced, is supply meeting demand, and this is putting pressure on the supply chain and logistics services.
AJW’s CEO, Clyde Buntrock confirms that these challenges are impacting MRO services, He highlights extended lead times for components caused by the bullwhip effect on the supply and availability of skilled labour, as primary challenges. He offers insight into the current skilled labour shortage and says, “The industry is actively addressing these issues and raising awareness of career opportunities to attract emerging talent into the sector.”
Current market circumstances are driving greater regionality in MRO sourcing, says Buntrock, and OEM centres are sharing services across the globe to mitigate capacity constraint. “It is a matter of working with customers and logistic partners to understand the supply chain vulnerabilities that exist and how to overcome them,” he continues.
The component demand increase has created challenges for OEMs and suppliers as raw material and labour costs soar, and Aircraft manufacturers are equally struggling to keep up with demand amid the challenges within the industry.
Buntrock suggests that supply chain challenges are driving inflation in market prices. As these challenges unwind, he says, the prices should return to a more normal equilibrium level with lower volatility, which will facilitate a smoother path for airlines and other aviation industry organisations to meet customer demands as the industry continues to recover.
When asked how the Group is mitigating these challenges, Buntrock explains that the company has expanded its global contracted services to meet growing demand, “We are actively evaluating the competitiveness of our logistics providers and remain committed to working with strong global allies to consistently provide logistics support.”
29 Nov 2023
Teardowns & Used Serviceable Material | AviTr...
17 Nov 2023
Predictive Maintenance & Advanced Diagnostics...
7 Nov 2023
Considering Consignments | Inside MRO
6 Nov 2023
Europe Regional Review | AviTrader MRO
27 Oct 2023
Aftermarket Trends | MRO Management
25 Oct 2023
The changing relationship between OEMs and MR...
Thank you for getting in touch