The Maintenance, Repair, and Operations (MRO) market is an important part of all supply chain networks, even though it is often overlooked as merely a business function. The functions of the MRO services range from maintaining electrical supplies to power transmission to even monitoring cleaning supplies.
Organizations across the globe are using independent MRO service providers to carry out maintenance operations as the client’s electrical equipment is often at risk of malfunction or breakdown.
MRO Business Opportunities
According to the global MRO market size, the value of the market is expected to reach $660 billion by the year 2020, expected to grow at a CAGR of 1.72 percent. As per experts, there has been an increase in the number of jobs and business opportunities in the MRO market after the industrial revolution as machinery is now getting used in almost all spheres of life.
North America and Western Europe are considered to be mature markets for MRO. Regions of LATAM (Latin America), APAC as well as Australia are considered as fast maturing MRO markets and account for over 37 percent of the global MRO market share. Industries such as mining, pharmaceuticals, oil & gas, automotive, food & beverage, technology as well as CPG extensively use MRO services.
Maintenance functions carried out by the MRO professionals which have significant importance in generating business include:
- Preventive Maintenance - Preventive maintenance is done periodically to prevent a fault before it occurs. It ensures smooth operations of the machinery and is considered to be a vital part of the maintenance cycle. Preventive maintenance includes operations such as conducting tests and noting measurements which ensures that all operations are working in order.
Oiling operations, deciding the nature and material of the machine, and deciding the number of operations assigned to the machinery comes under preventive maintenance.
- Corrective Maintenance - This function in the MRO industry is carried out after a default in the machinery has occurred. Corrective maintenance is one of the oldest forms of MRO activities. Many structured and unstructured industry players indulge in corrective maintenance in developed and developing economies. The activity involves the repair of equipment which is facing problems. Equipment faults include general wear & tear or a complete breakdown. Corrective maintenance also includes the repair and maintenance of equipment which is facing decreased efficiency.
Companies having staff competent in engineering and mechanics which are usually employed to carry out corrective maintenance.
- Predictive Maintenance - This type of maintenance is done by organizations which are robust in data mining and predictive analysis. Maintenance and repair activity based on the premises of predictive failure is called predictive maintenance. Predictions are made on the basis of previously generated data and statistics aiming to prevent major problems which are predicted to occur later on.
Future Business Opportunities In MRO Market
- Rise Of Value-Based Services - The service providers in the MRO market are aiming at offering value-based services such as warehouse management, VMI, performance analytics, storeroom management, and catalog management, to name a few. The rise in manufacturing activities and the availability of many value-added services such as deadstock management, performance analytics, and demand forecasting is expected to generate the growth of business opportunities in urbanizing of APAC.
- Expansion Of MRO Services In Developing Economies - Suppliers and distributors across the globe are expanding their influence in developing markets through mergers and acquisitions and by employing multi-location solutions.
- Introduction Of E-procurement - This is gaining popularity in India and China. A large number of online purchases are being made in high-volume and low-volume spending which is driving the B2B services. This has resulted in faster growth of predictive maintenance as compared to the market of corrective maintenance. This is further aided by more number of clients reaching out to prevent a risk of equipment malfunction before its actual occurrence.
- MRO Organizations and Outsourcing - Organizations are increasingly outsourcing maintenance, repair, and operations activities. This is done to ensure that highly qualified and skilled professionals take part in MRO activities. Outsourcing of skilled and experienced professionals reduces the downtime for equipment and allows a specific client to give business to the MRO company for a diverse variety of operations.
- Services Becoming Personalized - There is high competition in the MRO market which is compelling a large number of MRO organizations to make their services personalized and data-driven. Personalized MRO services cater to specific conditions and types of equipment, as well as according to the desired applications in order to provide the best service.
- Industry Specific MRO Services - Innovations in technology and data sciences have helped in the development of advanced MRO services which are industry-specific. Services being provided are exactly according to the nature and design of equipment. Hence, requiring specially trained personnel. For instance, different and relevantly experienced personnel are employed in MRO activities related to medical equipment, aerospace, housing, mining, etc. Outsourcing of personnel along with a demand for specialized staff is further generating business opportunities in the MRO industry.
MRO goes beyond making sure that the parts are functioning well. MRO professionals are also expected to manage those assets to ensure maximum efficiency and minimum downtime.