2014 Rate and Labor Survey Results Now Available to AEA Members
Avionics repair stations expect new ADS-B technologies and rising demand for installations to drive future business growth.
For the third straight year, a growing percentage of Aircraft Electronics Association members in the U.S. expect their business to grow in the next 12 months. According to this year's AEA Rate & Labor Survey, 69 percent of the avionics repair stations that participated in the survey said they are optimistic for future growth. This figure is up compared to the 62 percent of shops that expected future growth in 2013, and 56 percent in 2012.
So what is fueling the industry's surge in optimism? Of the 69 percent of U.S. repair stations expecting growth, more than two-thirds of those respondents believe such growth is on the horizon due to the Federal Aviation Administration's ADS-B Out mandate looming on New Year's Day 2020, along with the fact that new equipment and ADS-B compliant solutions have been introduced to the marketplace in 2014 with more expected next year.
The survey also showed an increase in shop rates from the previous year across the board, including the U.S., Canada and South Pacific.
"As demand for repair station work increases the closer we get to the 2020 ADS-B mandate in the U.S., we expect to see rising shop rates," said Mike Adamson, AEA vice president of member programs and education. "This should come as no surprise to aircraft owners who have repeatedly been informed of a potential backlog of installs in the coming years. The cost to comply with the ADS-B mandate is not getting cheaper. Even if new product solutions continue to be developed, aircraft owners who procrastinate with installing a compliant solution will face higher shop rates and labor costs."
The survey also noted that competition within the industry was increasing, qualified avionics technicians are difficult to find, and regulatory hurdles are a limiting factor in the success of government-certified repair stations.
"According to the results, any negative outlook from our repair station members was primarily due to their slow regional economy," Adamson said.
For a complete look at the 2014 AEA Rate and Labor Survey and analysis of the results, AEA members may view the entire report online after entering their member login on the AEA's website.
The annual AEA Rate & Labor Survey examines and compares shop and labor rates by national and international regions. It also shows employee benefit/compensation package information, a profile of technician experience, regional employment demand and a business outlook perspective. The quick-glance layout allows repair station owners and managers to easily compare their businesses to others in their regions of operation.