U.S. and Canadian military services are experiencing a significant shift in
MRO spending. The return of aircraft from combat areas will reduce general
demand and may change the levels of organic support services. The replacement
of legacy aircraft with smaller fleets of new aircraft will result in reduced
need for contracted services. Frost & Sullivan's aerospace and defense group
found that spending for North American military MRO exceeded $35.1 billion in
2011, and is expected to decline after 2013. Spending will become more
selective and specialized at that point.