Arcam AB fka AMAVF

[charlie T colton]

Maintenance, Repair & Overhaul Parts’ Prevalence

At mro-network.com - Maintenance, Repair & Overhaul Parts’ Prevalence - Jul 04, 2017

A short article, in full below:

The gem in Boeing’s new services business may not be the much-heralded data analytics.

Sean Broderick | Jul 04, 2017

Boeing’s new Boeing Global Services (BCS) business unit officially opened for business July 1, combining support for commercial, defense, and space into a single entity. Much of the focus will be on how Boeing leverages data to deliver deeper insight—and, fundamentally, actionable information—to its customers.

The company emphasized this at the Paris Air Show by rebranding its analytics offering as AnalytX, an 800-person-strong operation that—among other things—supports more than 4,300 Boeing aircraft under some sort of airplane health management (AHM) service contract. It also announced several new analytics services contracts, including AHM deals for Delta Air Lines 717s, Korean Air’s 777s and 787s, and China Airlines 737NGs and 747 freighters.

Meanwhile, just a few chalets down, Airbus was unveiling its new MRO Alliance, with a decidedly data-flavored center.

There is no question that analytics will play a major role in delivering more efficient aftermarket services, including predictive maintenance. But analysts at Canaccord Genuity believe that monetizing data services remains elusive.

"Companies are talking about data and we believe there is material opportunity here, but this is a business that is yet to demonstrate a material revenue opportunity,” Canaccord says in a recent research note.

Canaccord has long been clear that BGS’s greatest strength out of the box is in an area far more tangible than zeros and ones.

"We believe the shining star of the services business is the Boeing proprietary parts business,” Canaccord wrote in a detailed analysis of Boeing's commercial services business last year. "This business is also where Boeing is aggressively adding product as it re-negotiates supplier contracts that come up for renewal on Boeing-owned IP spare parts.”

Analytics may be the future, but parts—which tend to play a central role in most MRO strategies—are most definitely the present. And odds are—from used materials to PMA to additive-manufactured new parts and spares—they will remain front and center for a long time to come.



Okay, I had to look it up - PMA: "Parts Manufacturer Approval (PMA) Is a combined design and production approval for modification and replacement articles. It allows a manufacturer to produce and sell these articles for installation on type certificated products."



For reference:

Boeing’s Aftermarket Push Targets Spares Sales

Boeing’s aftermarket push will continue to pressure parts suppliers as the company reverses an established outsourcing trend in a bid to maximize its intellectual property (IP) and cash in on post-delivery revenue streams.

The company’s Commercial Aviation Services (CAS) business—broadly defined by Canaccord Geunity analysts as parts, maintenance and engineering, customer support, and flight operations solutions—is estimated at $8.1 billion annually and growing, Canaccord calculates. (Boeing does not break out CAS revenues.) The figure represents 13% of total Boeing Commercial Airplanes (BCA) unit sales, but the estimated $1.1 billion in CAS operating profit is more than 18% of total BCA profits, Canaccord said.

Two years, ago, BCA President Ray Conner said CAS sales made Boeing the third-largest commercial aftermarket provider, behind GE Aviation and Lufthansa Technik (LHT). Growth—both organically and through acquisitions—now has Boeing behind only GE. Parts, in particular propriety parts, are playing a major role in the the expansion.

“We believe the shining star of the services business is the Boeing proprietary parts business,” Canaccord wrote in a recent, detailed analysis of CAS’s business. The parts business is expected to generate $2 billion in 2016 sales and $475 million in profits—a healthy 24% margin, Canaccord calculates. “This business is also where Boeing is aggressively adding product as it re-negotiates supplier contracts that come up for renewal on Boeing-owned IP spare parts.”
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Boeing aims to triple services unit; exec changes support goal - Nov. 22, 2016

Nov. 22, 2016, © Leeham Co.: Boeing hopes to triple its global services businesses from $15bn in revenues to nearly $50bn in the next five years. A corresponding increase is targeted in market share from today’s 7% in commercial aviation and 9% in defense.

Two moves in the executive ranks yesterday are clear signals of the increasing importance of services to The Boeing Co.’s business strategy, revenue growth and profits.

New CEO for Boeing Commercial Aircraft

Ray Conner, who has worked for Boeing for more than 40 years and worked his way through the ranks to become CEO of Boeing Commercial Aircraft and Vice Chairman of The Boeing Co., announced his retirement yesterday as CEO. He remains vice chairman through December next year, when his current contract expires.

His success(or) is Kevin McAllister, the CEO of GE Aviation Services. He is the first CEO of BCA, which was formed in 1965, who didn’t come from within BCA or the Defense unit.

Boeing Co. CEO Dennis Muilenburg took pains to claim McAllister isn’t the outsider he appears to be, noting that McAllister worked closely with Boeing for many of his 27 years at GE.

Still, McAllister is probably an unknown to the BCA rank-and-file.

McAllister’s experience in customer services at GE Aviation will be important to Muilenburg’s ambitions to grow Boeing’s services business unit.