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Aviation
■ Capacity constraints. Increasingly, facilities are booked months or even years in advance for certain engine programs
This environment has increased the value of established MRO providers and created opportunities for expansion and acquisition activity.
One of the most significant trends emerging from the supply chain crisis is the growing importance of USM, which refers to components harvested from retired aircraft and certified for continued use. The USM market size was about $ 7.6 billion in 2025 and is projected to exceed $ 10.8 billion in 2033. This rapid growth is driven by allowing faster availability than new parts, lower acquisition cost, improved supply reliability, and reduced aircraft downtime.
The industry’ s implementation plan
Industry participants are adapting in numerous ways, with the focus shifting from efficiency to resilience. Two increasingly important aftermarket tools are Parts Manufacturer Approval( PMA) parts, which are FAA-approved replacement or modification parts, and Designated Engineering Representative( DER) repairs, which are FAA-approved, engineered repair solutions.
Airlines are extending fleet life, diversifying suppliers, increasing spare engine inventories and USM, and securing long-term MRO maintenance agreements Lessors are retaining aircraft longer, expanding engine leasing portfolios, and investing in aftermarket capabilities for mid- to end-of-life aircraft / engine extension
MRO providers are expanding facilities, recruiting and training technicians, increasing capacity for PMA parts, and DER repairs and pursuing acquisitions to add capacity
Airlines are extending fleet life, diversifying suppliers, increasing spare engine inventories and USM, and securing long-term MRO maintenance agreements
Suppliers are increasing USM inventory levels, utilizing alternative sourcing strategies for PMA parts and DER repairs, and nearshoring critical production
The bottom line
While manufacturing output is gradually improving, the supply chain and structural challenges discussed remain pervasive throughout the aviation ecosystem. Meaningful improvement will be incremental, as organizations that successfully adapt to this environment by strengthening supply chains, expanding aftermarket capabilities, and improving workforce and operational flexibility will be best positioned to capitalize on aviation’ s continued growth.
As we continue to expect supply chain pressures to persist in the coming years, access to aircraft, engines, and parts has become just as important as access to customers. The aviation industry’ s greatest challenge today is not generating demand but meeting it. ■
For a list of sources used in this article, please contact the editor.
Joey Smith www. casselsalpeter. com
Joey Smith, Aviation Director, Cassel Salpeter & Co., has more than 25 years of experience in the capital markets and securities industry in South Florida. Joey provides the firm’ s clients with his expertise in middle-market investment banking to private and public companies.
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