About half of the companies responding to the Aircraft Electronics Association’s 2011 Rate & Labor Survey say they expect business to increase this year, with another 46% saying they expect business to remain the same.
Only 5% expect a decrease in business, compared to the 15% who expected a decrease in 2009, and 8% in 2010, AEA officials said. While the majority of repair stations still believe economic conditions are negatively impacting their business, the numbers dropped from 79% in 2010 to 70% in 2011.
According to survey respondents, the drivers for business decline include a weakening economy, increased regulation and the anti-aviation sentiment coming from the current White House administration. Any perceived increase in business is associated with the release of innovative new products, more strategic marketing efforts by member repair stations and more activity in the used aircraft market.
“The comments received from this year’s Rate & Labor Survey are a sign that our members are having to clear even more hurdles to reach their business expectations,” said AEA President Paula Derks. “The growth outlook we had in 2010 has tempered some in 2011, but members remain positive that new products and new markets — along with aircraft transaction activity — will drive growth into 2012.”
The annual 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.
Non-AEA members can purchase the 2011 Rate & Labor Survey results, available digitally, for $129. For more information: 816-347-8400 or AEA.net.