There's no shortage of MROs who can repair aircraft parts.

Although, there are issues with older aircraft no longer supported by OEMs.

There are few barriers to entry for accessories that don't require million-dollar testing equipment. As a result, you see new spinoff MROs, every year.

But, the problem most small aircraft part repair stations face now and in the foreseeable future are:

1/ Technician Shortages

For years people have been ringing the alarms on mechanic and technician shortages.

Boeing and Airbus have said that the MRO industry will need at least 600,000 new technicians over the next two decades. But COVID-19 changed that; in 2020, 1.3 million airline industry jobs were lost, which doesn't include the layoffs at small MROs.

And to add to the problem, small MROs struggle to recruit talent.

One small MRO has said they're competing against a few savvy entrepreneurs who start an MRO, build it, sell it off, and recruit some of the same talent from their old operation.

But, this is an excuse, and they can compete against the big boys with some creative incentives.

2/ Lost Legacy Knowledge

Another issue is that aircraft mechanics are retiring much faster than they are being replaced.

According to an ATEC report, new technicians account for two percent of the annual labor pool, while thirty-three percent of the workforce is near retirement age.

A new technician can't have the knowledge or depth of a thirty-year veteran.

3/ Capacity Crunch Leading To Longer Turn-Around-Times

When you have a rise in maintenance demand and not enough people to do the work, it creates longer turn-around times.

We've witnessed small MROs who have a few technicians or who do the work themselves; they can't meet our demand.

This increases turn-around-times, and in this industry, TATs matter significantly which positions the smaller MRO as a less ideal repair option.

4/ Weak Technology Investments

Most small MROs have invested in maintenance and ERP systems.

They've failed to invest in automation, creating a better customer experience. We're beyond the time when manual approvals, repair updates, and many administrative activities must be done manually.

5/ No Differentiation

The last and final trend plaguing small MROs is their differentiation.

They all can repair parts (some much better than others), but none of them stand out as different than their competitors. As a result, they've become a commodity.

They need to create a core differentiator and lean into that.

If small MROs can improve these threats, they'll see a dramatic improvement in their operation.