Citation
(2007), "European military MRO market wide open", Aircraft Engineering and Aerospace Technology, Vol. 79 No. 2. https://doi.org/10.1108/aeat.2007.12779baf.007
Publisher
:Emerald Group Publishing Limited
Copyright © 2007, Emerald Group Publishing Limited
European military MRO market wide open
European military MRO market wide open
A new report refutes the perception that Europe's military MRO markets for aircraft and equipment are closed to competition. European Military Aircraft and Equipment MRO 2006, which has just been published by aerospace analysts counterpoint market intelligence, dispels the myth that military MRO contracts are only won by either state organisations or the country's national champions.
The report provides analysis of military MRO in 16 European countries, highlighting the many different aspects of MRO. It recognises that there are still barriers – some perceived and some real – to winning cross-border MRO work. However, with the right mix of competitive pricing, innovative work practices, top quality and shorter turnround times, contracts are being successfully negotiated.
It is important that this message hits home as the market is significant. Counterpoint estimates that the European military aircraft and equipment MRO market was worth $16.5 billion (e13 billon) in 2005; this compares to an estimated e22billon in the USA.
Increasing importance will be apportioned to the MRO sector as budgetary pressures lead the armed services to put greater emphasis on upgrading existing systems and extending platform life. The report notes that one of the trends is that large third party military MRO providers are achieving increasing success in winning cross-border work on platforms that were originally manufactured outside Europe.
As the UK has been leading the way in terms of its open approach to awarding contracts and the way it has transformed MRO contracting – particularly its emphasis on through- life support and performance-based contracts – the report features the country as a detailed case study. The operational and financial benefits arising from the UK's approach are resulting in other European nations following suit.
In addition to the UK, 15 other European countries have been surveyed in terms of how their military MRO is procured. The primary MRO providers are identified and characterised in each country.
European Military Aircraft and Equipment MRO 2006 costs £3,000 and is available from Counterpoint Market Intelligence, web site www.cpmil.com