Thu, Sep 03, 2009
Trade Surplus Exceeds $2 Billion
The aerospace research and marketing firm AeroStrategy has
recently completed a study on the global civil MRO market, which
exceeded $50 billion in 2008, with North America (the U.S. and
Canada) accounting for $19.4 billion of the total.
The company found that North America is a major net exporter of
aviation maintenance services, enjoying a $2.4 billion positive
balance of trade in this arena. While North America is a slight net
importer of heavy airframe maintenance services, it has $1.4
billion and $1.2 billion trade surpluses in the engine overhaul and
component maintenance services markets, respectively. The U.S.
competitive advantage in these two areas has important economic
benefits because one dollar of spending on airframe heavy
maintenance generates just $1.38 in additional economic activity,
while a dollar spent on engine overhaul and component maintenance
services generates $1.85 and $1.67, respectively. When induced and
related economic effects are considered, the MRO industry’s
impact on the U.S. economy is $39 billion per year.
The report was prepared for the Aeronautical Repair Station
Association (ARSA) to provide fresh insights about the aviation
maintenance (MRO) industry’s economic footprint and impact on
the U.S. economy. ARSA is an international trade association
representing MRO companies.
The report also found there are nearly 4,200 firms with more
than 200,000 employees are involved in the civil MRO market in the
United States. Eighty-five percent of those companies are small and
medium-size enterprises, which account for 21 percent of all
industry employment.
ARSA commissioned the study in part to better understand the
consequences of legislation that would make it harder for aviation
maintenance companies to serve international airlines. Of
particular note is the aviation bill passed by the U.S. House of
Representatives earlier this year that the European Union has said
violates existing treaties. The EU has threatened to retaliate
against U.S. companies if it becomes law.
“We now have a better understanding than ever about how
small companies and their employees in communities throughout the
United States are tied to the global marketplace.” ARSA
Executive Director Sarah MacLeod said. “Congress should be
looking for ways to make it easier for these U.S. companies to
serve foreign customers, not trying to hamstring a
highly-competitive sector of our economy.”
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