The Aircraft Electronics Association’s 2022 Rate and Labor Survey highlights market activity, with more than 60% of US avionics repair stations avionics expecting growth and success in the coming year. At the same time, the survey also highlighted increases in operating costs, with more than half, and in some regions as many as two-thirds, increasing store openings and the vast majority increasing pay.
“Given the impact of inflationary pressures and the extraordinary efforts required to manage and maintain the flow of OEM products as these OEMs continue to grapple with supply constraints and rising product costs, this year’s findings are not surprising,” he said. AEA President and CEO Mike Adamson avionics news Article about the investigation published today. “Despite ongoing workforce challenges in recruiting and retaining high-quality technicians, repair stations continue to report a positive outlook.”
Only 7% of respondents expected business to decline, citing inflation, gas prices, supply chain delays and stock market volatility as reasons. Another 33 percent expect business to remain the same, while in Canada 53 percent expect growth and in the South Pacific region 56 percent are optimistic.
Those seeing growth attribute reduced competition, product availability, facility expansion, and additional personnel and services as underlying causes. Many who have seen business remain flat say their businesses have found a “sweet spot” where there is a manageable balance between workload, backlog, facility size and staff, the AEA reported, saying it is a “surprise”.
As for store prices, 52 percent of stores in the West reported an average increase of 6.8 percent. However, by 2022, the region’s overall average installation rate will drop by 0.38%. Meanwhile, two-thirds of stores have increased wages, down from 74% in 2021.
In the Midlands, prices rose an average of 8 percent across two-thirds of stores, with service prices rising the most by an hourly rate of 9.97 percent to $122.14. About 80% of workers got pay increases, but benefits fell across the board.
In the East, 61% said store openings had increased, down from 66% last year, while 85% said wages had increased. Store rate increased by an average of 7%. Nearly three-fifths of stores offer bonuses, a little more than half from last year.