Avionics News December 2021 - 25

BUSINESS GROWTH
Within the next 12 months, you expect your business to:
Remain
the Same
20%
Decrease 6%
74%
Increase
8%
2%
U.S.
WEST
aircraft maintenance profile. Turboprops grew 9 points to
93%, but jets dropped 7 to 50%, and rotorcraft autorotated
20 points to 45%. Piston-powered aircraft still represent the
majority of the Central region customers at 93%, down 2
from last year.
Business expectations in the East region were more
pronounced, but not to the antipodal extremes reported by
shops in the West region.
In the East, 60% of respondents expected their business
to increase, up from 35%. Those predicting a decline fell by
almost half, to 8% from 15%. One-third of the shops expected
their business to remain the same, down from half of 2020's
respondents. More surprising was the change in their piston
aircraft business, down 15 to 83%. Turboprops dropped 6 to
79%, jets lost 7 for 51%, and rotorcraft settled 3 points to 60%.
Out West, the number of respondents who expected their
business to increase more than doubled, to 74% from 36%
the previous year. The change in those expecting business to
decline was equally as dramatic, just 6% from 2020's 14%.
Only one-fifth of the respondents expected their business to
remain the same; last year, half of them made that prediction.
More perplexing was the decline in every category of
aircraft they maintained. Piston aircraft dropped 15 to 81%.
Turboprops lost 12 points for 77%. Jets reported the smallest
decline, down 9 to 55%. Rotorcraft fell 10 points to 58%.
In Canada, no respondent predicted their business would
decrease in the coming year, not a single one. Looking into
2022, 42% said business would increase with 58% expecting
it to remain the same. The mix of their maintenance profiles
was similarly dramatic. Piston aircraft dropped 8 points to
U.S.
CENTRAL
U.S.
EAST
92%, but turboprops made up for that, climbing 23 points
to 92%. Jets jumped 20 to 58%, and rotorcraft settled 11 to
58%.
Only one-fourth of Canadian respondents said they
would raise their shop rates an average of 10%, a significant
change from last year, where half the respondents raised
rates 5.4%. Three-quarters of the shops increased their
employees' salaries an average of 5%. One-fourth of them
offered an average incentive pay of $5,500 Canadian. They
also made significant changes in their employee benefits. Up
from half, 92% of respondents offered life insurance; half
offered retirement, from 31%, and the number offering flight
training, 17%, nearly tripled.
The South Pacific reported similar business expectations
with no one expecting a decrease. Those predicting an
increase jumped to 57% from 14%, and 43% expected
business to remain the same, down from 65% in 2020. On
the maintenance profile, jets held steady at 50%; piston and
rotorcraft both climbed to 100%, and turboprops dropped
7 to 86%. Shop rates increased an average 4% at 36% of
shops, and 64% increased employee salaries an average of
4.3%, with 36% offering an average incentive pay of $2,500
Australian.
As it always does, time will tell how accurately the
respondents have predicted their business futures, and the
AEA encourages all of its members to participate in the 2022
Rate and Labor Survey. q
AEA members may download the 2021 AEA Rate and Labor
Survey at aea.net with a member login.
avionics news * december 2021 25
57%
Increase
Remain
the Same
41%
60%
Increase
Remain
the Same
32%
Decrease
Decrease
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Avionics News December 2021

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