Market Trends of United States Maintenance, Repair, and Operations (MRO) Industry
This section covers the major market trends shaping the US Maintenance, Repair, & Operations (MRO) Market according to our research experts:
Industrial MRO Accounts for the Largest Market Share
- The adoption of industrial MRO equipment in the manufacturing industry has been impacted due to various driving factors, including the increasing demand to reduce cost, increasing market maturity, cyclical fluctuations in new equipment sales, and the rising need to enhance product quality. With enterprises in the manufacturing sector continuously seeking to achieve large profit margins, they have been looking to maximize return on net assets (RONA).
- Further, manufacturing activities have witnessed exponential growth, owing to the region's government initiatives to introduce various programs, initiatives, and policies that encourage manufacturing activity.
- For instance, in March 2020, the National Institute of Standards and Technology (NIST), a Department of Commerce in the United States, opened a funding opportunity for high-impact projects that support the nation's response to the COVID-19 pandemic. The funding is expected to be awarded to eligible public-private partnerships with private and academic sector manufacturing organizations on research, development, and manufacturing processes.
- As of June 2020, the Trump administration in the United States has been documenting a proposal to invest nearly USD 1 trillion on infrastructure to spur the country's economy back to life. A preliminary version of the proposal prepared by the Department of Transportation has been planning to reserve most of the investment for traditional infrastructure work, like roads and bridges, and set the funds aside for 5G wireless infrastructure and rural broadband.
- Moreover, industrial players have also been deploying MRO equipment to reduce supply chain costs, mainly driven by transportation and production costs. Furthermore, collaborations in the space could provide further impetus to the market's growth studied during the forecast period.
- For instance, in February 2020, Galco Industrial Electronics Inc., an e-commerce driven MRO-focused distributor of electronic industrial control and automation components, was acquired by Freeman Spogli & Co. The company believes that the acquisition would pursue multiple expansion opportunities and strategic initiatives in the United States.
Understand The Key Trends Shaping This Market
Download Sample
Facility MRO is Expected to Witness Significant Growth
- Facility MRO services are receiving considerable demand from the building and construction industry. Due to the increasing construction activities in the region, investments in infrastructure are also expected to rise, which are further expected to increase the demand for MRO services in the industry.
- Several regional players are carving out a niche by specifically catering to the construction end-user industry due to the surging demand. For instance, US-based Service Logic LLC offers a full range of HVAC services, like maintenance programs, that prolong the life of the equipment to strategic capital planning initiatives that help construction clients prepare for future investments.
- Despite the decrease in sales and demand in the overall manufacturing sector, the food manufacturing sector is witnessing an upsurge with the ongoing COVID-19 pandemic. Evolving consumer demands have fuelled faster production requirements in the region. As food manufacturers attempt to meet that demand, standards, such as the FDA’s Current Good Manufacturing Practices (cGMP) regulations, have made food safety, product quality, and food processing plant maintenance into relentless efforts, further driving the studied market.
- Furthermore, due to the global COVID-19 pandemic, an increasing number of aerospace manufacturers and suppliers are shifting toward producing medical products, such as ventilators and face shields. Hospitals need to treat the growing numbers of seriously ill coronavirus patients.
- Such initiatives are further expected to increase the demand for facility MRO services in the industry due to the increasing need for hygienic and efficient operations at the facility.
- Further, All mining facilities must meet the security, safety, communication, HVAC, energy, and automation criteria. For instance, Sodexo USA offers mobile maintenance services, HVAC/R service, and remote monitoring for mining facilities operating in the regional marketplace.
