Avionics News December 2016 - 25
With nearly 70 percent of shops linking
their growth to the ADS-B mandate, we
are experiencing the effects of supply
and demand ... For only the third time in
the last seven years, repair stations in
all three regions of the United States,
Eastern, Central, and Western, have
increased their service and installation
rates.
Mike Adamson,
AEA vice president of member programs and education
and labor rates," he continued. "We'll know if we have a trend
in 2017 as we move closer to the ADS-B deadline and AEA
member shops ramp up their capabilities and staffing to balance
growth, capture opportunities in NextGen technologies, and
remain competitive in their region."
Business growth
Overall, 89 percent of 2016's respondents in the U.S.
expect their business to grow in the coming year. This overall
optimism is built on some significant
geographic changes in the Eastern and
Western regions.
Western shops predicting an increase
in business next year jumped 21 points,
to 96 percent. Not one shop expects
business to decline. More significant,
only 4 percent of shops expect business
to stay the same during the next 12
months, down from 22 percent in last
year's survey.
Like businesses west of them, not a
single repair station in the Central region expect business
to decline in the next 12 months; only 4 percent saw that future
a year ago. Up six points, 85 percent expect business to improve
in the next year, with the numbers expecting the same level of
business decreasing to 15 percent, down from 17 last year.
In addition, 87 percent of shops in the Eastern region said
their business would increase, down two points from a year
ago. The 8 percent who said business would stay the same
last year said it again in 2016, and the number saying business
would decrease grew to 5 percent.
Nationally, 67 percent of shops attribute their future business
growth to equipment mandates, up substantially from 47 percent
last year. This increase cut most of the other categories, such
as adding capabilities, marketing, the economy, and adding
technicians, roughly in half, give a point or two. Two categories,
other and maintenance, remained unchanged at 4 percent.
Among those shops that predict their business to decline,
46 percent attribute this outlook to a slow regional economy,
down 1 from a year ago. Two related categories, lack of trained
technicians and at maximum capacity, were both at 15 percent.
The capacity figure was unchanged from last year. The tech
shortage was up from 5 percent a year ago, which was down
from 17 percent in 2014. Two new categories, increased
competition and decline in aircraft maintenance work,
debuted at 8 percent each. Increased regulations
jumped from 5 to 8 percent this year.
2016
RATE &
LABOR
SURVEY
Rates and benefits
Nationwide, the majority (an average
of 72 percent) of avionics repair
stations will increase the salaries
an average of 4.9 percent this
year. For 2016, the respondents
averaged 12 employees, with the
majority of them in the category of
three to 10 employees. As seen with
the service and installation rates, the changes are greater in the
Eastern and Western regions.
Working from left to right, 81 percent of shops in the
Western region said they would increase salaries 5.4 percent.
In addition, 58 percent said they offer incentive pay that
averages $2,084. In the Central region, 61 percent of shops will
increase salaries an average of 4.2 percent, and 45 percent offer
incentive pay that averages $1,987. On the right-hand region,
74 percent of Eastern shops will increase their staff's salaries
an average of 5 percent, with only 37 percent offering incentive
pay that averages $1,980.
Continued on following page
avionics news
*
december
2016
25
Table of Contents for the Digital Edition of Avionics News December 2016
No label
Avionics News December 2016 - Intro
Avionics News December 2016 - No label
Avionics News December 2016 - Cover2
Avionics News December 2016 - 1
Avionics News December 2016 - 2
Avionics News December 2016 - 3
Avionics News December 2016 - 4
Avionics News December 2016 - 5
Avionics News December 2016 - 6
Avionics News December 2016 - 7
Avionics News December 2016 - 8
Avionics News December 2016 - 9
Avionics News December 2016 - 10
Avionics News December 2016 - 11
Avionics News December 2016 - 12
Avionics News December 2016 - 13
Avionics News December 2016 - 14
Avionics News December 2016 - 15
Avionics News December 2016 - 16
Avionics News December 2016 - 17
Avionics News December 2016 - 18
Avionics News December 2016 - 19
Avionics News December 2016 - 20
Avionics News December 2016 - 21
Avionics News December 2016 - 22
Avionics News December 2016 - 23
Avionics News December 2016 - 24
Avionics News December 2016 - 25
Avionics News December 2016 - 26
Avionics News December 2016 - 27
Avionics News December 2016 - 28
Avionics News December 2016 - 29
Avionics News December 2016 - 30
Avionics News December 2016 - 31
Avionics News December 2016 - 32
Avionics News December 2016 - 33
Avionics News December 2016 - 34
Avionics News December 2016 - 35
Avionics News December 2016 - 36
Avionics News December 2016 - 37
Avionics News December 2016 - 38
Avionics News December 2016 - 39
Avionics News December 2016 - 40
Avionics News December 2016 - 41
Avionics News December 2016 - 42
Avionics News December 2016 - 43
Avionics News December 2016 - 44
Avionics News December 2016 - 45
Avionics News December 2016 - 46
Avionics News December 2016 - 47
Avionics News December 2016 - 48
Avionics News December 2016 - 49
Avionics News December 2016 - 50
Avionics News December 2016 - 51
Avionics News December 2016 - 52
Avionics News December 2016 - 53
Avionics News December 2016 - 54
Avionics News December 2016 - 55
Avionics News December 2016 - 56
Avionics News December 2016 - 57
Avionics News December 2016 - 58
Avionics News December 2016 - 59
Avionics News December 2016 - 60
Avionics News December 2016 - 61
Avionics News December 2016 - 62
Avionics News December 2016 - 63
Avionics News December 2016 - 64
Avionics News December 2016 - 65
Avionics News December 2016 - 66
Avionics News December 2016 - 67
Avionics News December 2016 - 68
Avionics News December 2016 - 69
Avionics News December 2016 - 70
Avionics News December 2016 - 71
Avionics News December 2016 - 72
Avionics News December 2016 - Cover3
Avionics News December 2016 - Cover4
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