What are MRO?

MRO is the abbreviation of English Maintenance, Repair and Operations, which refers to maintenance, repair and operation. Refers to the non-productive materials required by a factory or enterprise to maintain and repair its production and working facilities and equipment to ensure its operation. These materials may be spare parts for equipment maintenance and repair, or related equipment and consumables to ensure the normal operation of the enterprise.

What is the difference between MRO procurement and ordinary procurement?

The procurement of traditional industrial products needs to be subdivided into categories according to the procurement plan of industrial products, and then find distributors of matching product categories. Generally, it is necessary to visit several sales markets before purchasing. And because the use of each type of industrial product is not large and relatively scattered, it is difficult to carry out this work. We adopt ordinary procurement methods, and the transportation and logistics are difficult. Small and medium-sized goods cannot fit in a small car, and cannot be filled in a large truck, and the truck has to go to several regions for distribution. For enterprises, the cost of transportation management in the traditional procurement mode is very high. The shopping mall purchased by MRO effectively solved this trouble for us. According to strict manufacturer qualification certificates and product quality approval, the mall integrates regional manufacturers, gradually enriches commodity categories, promotes offline and builds regional logistics warehousing. Customers only need to place an order in the mall, and after receiving the order information, the mall will dispatch the order information to regional manufacturers or warehouses for delivery. Customers only need to select the products they need to use in the mall to submit an order, and then wait for the engineering acceptance of the goods at the construction site. Compared with traditional procurement, this model has huge advantages.

MRO Market Trends

The commercial airliner MRO market has experienced steady growth over the past decade owing to a growing global economy, increasing demand for air travel, and expanding global fleet. However, the pandemic has dealt a setback to the aviation market over the past 12 months or so.

According to the International Air Transport Association (IATA), the global airline industry lost more than $118 billion in 2020, with dozens of airlines seeking bankruptcy protection or stopping flying altogether. Cash preservation and cost containment remain top priorities for airlines during the pandemic, which has bad news for aerospace manufacturers and maintenance, repair and overhaul (MRO) service providers.

According to the analysis of the global MRO market forecast 2021-2031 by Oliver Wyman, an American consulting firm, it is estimated that the epidemic period will reduce commercial airliner MRO spending by about US$40 billion in 2020. Oliver Wyman estimates that commercial airliner MRO spending will reach $68 billion in 2021.

Due to the ongoing pandemic, commercial MRO demand is unlikely to return to pre-pandemic levels before the end of 2022. The timing of the MRO’s return to pre-pandemic spending levels will largely depend on a recovery in air travel demand, driven by the speed with which the economy recovers and the international community battles the pandemic.

However, despite lower expectations for MRO growth, the industry is projected to grow at a CAGR of 3% until 2031, according to the analysis.

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