Wed, Aug 24, 2011
2011 Rate And Labor Survey Finds Improvements In Business
Outlook In The Industry
The Aircraft Electronics Association released the results from
its 2011 Rate & Labor Survey this week to participating AEA
member companies. In comparing this year's survey results
with the 2010 survey, the AEA discovered some improvements in
business outlook despite business activity that appears to be
leveling off in 2011.
Of those repair stations responding to this year's survey, 49
percent said they expect their business to increase this year, and
46 percent expect their business to remain the same. Only five
percent expect a decrease in business, compared to the 15 percent
who expected a decrease in 2009, and eight percent in 2010. While
the majority of repair stations still believe economic conditions
are negatively impacting their business, the numbers dropped from
79 percent in 2010 to 70 percent 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."
This annual survey, which is distributed to AEA members at no
charge as one of their membership benefits, 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.
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