Avionics News April 2016 - 4

Time to realize your true value

s I read Ric Peri's "No More Apologies" column in
tinue to radically change or restrict certain business practices
the January edition of Avionics News, I could not
that existed in the traditional shop/OEM relationship. Some
help but think how much I agreed with his statement in relaOEMs have even chose to cut out or completely bypass a
tion to certain aspects of the aviation industry.
dealer network to deal with end-users directly. Others want
In many ways, the aviation industry in general, and avionto dictate what shops can bill for their labor when they touch
ics shops specifically, do not follow some of the normal busian aircraft for them.
ness practices and laws of economics present in the everyday
There should be no debate that lower prices and razor-thin
consumer world - supply and demand, inflation,
profits ultimately create an environment for decreasreturn on investment and opportunity cost, just to
ing quality, as well. What is going to be your motiname a few.
vation to do a great job if you are giving away your
It is ironic that we are in one of the most regwork for basically nothing? How much is your pride
ulated and scrutinized industries; however, we
worth to you? Your reputation? Your potential for
continue to let some of the hobbyist recreational
repeat work?
aspects of general aviation influence how we
The market cannot operate as it did 20 or 30
run our businesses and how we deal with certain
years ago, yet some avionics shops still operJoe Braddock
customers. There is nothing wrong with loving
ate that way. There is too much risk and liability
what you do and helping people. But at the end
at stake to do so. One mishap, safety violation,
of the day, you should at least be getting equal pay for equal
insurance claim, or conflict with a large OEM could lead
work. Many of us are still not doing so because we feel that
to you closing your own avionics shop doors. Sound too
we may have to apologize if we try to keep our rates in line
farfetched? In today's world, unfortunately, you should
with our expenses and industry trends.
prepare for the worst to happen, as there are opportunistic
As far as I can tell, competition has never been as aggrespeople counting on and profiting from you not watching
sive as it is now. It should go without saying that when we
your own back.
constantly undercut each other, we all suffer. Ultimately,
I realize that many of the points I have raised are nothing
we set a precedent for aircraft owners and operators that
new. It is a subject matter that the avionics industry has been
we can never recover from or undo. It is disappointing and
dealing with for many years. However, I cannot think of a more
pressing and necessary time for AEA repair station members to
troubling that here we are in a modern world of increased
band together for a common cause. Even though we all comscrutiny and regulation from a list of government agencies
and entities (FAA, EASA, ISO, OHSA, ITAR, Hazmat), yet
pete in the same market, there is no denying that the more uniwe usually don't transfer any of that burden to the customer.
fied and solidified we are as an association, the better chance
Think about it - in every other industry, when costs increase
we have for survival in these uncertain times. We can start by
(tangible and intangible), the consumer pays. Yet there are
realizing our true value to the industry. What is yours? q
avionics shops that haven't raised their labor rate in more
than 10 years, possibly out of fear that they might have to
apologize to a customer.
JOE BRADDOCK
Alongside all of this, changes in the industry are making
Executive Vice President, Southeast Aerospace
it more difficult for smaller to mid-size companies to realize
a decent profit. Some original equipment manufacturers con- Melbourne, Florida

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Table of Contents for the Digital Edition of Avionics News April 2016