Focus: Aviation sector faces hiring headache as mechanics shortage looms

Singapore Technologies Engineering

15/07/2022 11:00

By Allison Lampert and Abhijith Ganapavaram
    MONTREAL/BENGALURU, July 15 (Reuters) - Christophe Gagnon
considered quitting his avionics studies as COVID-19 crippled
aviation, but the 21-year-old stayed in class and now the
industry is desperate for more like him to keep planes flying.
    Two years after lockdowns nearly grounded the airline
industry, repair shops and suppliers are scrambling for students
like Gagnon, who received multiple job offers while still at the
École nationale d'aérotechnique (ÉNA) in Canada's aerospace hub,
Quebec.
    The hiring rush is evidence of a sharper than expected
recovery in air travel, but also signals a looming labor
shortage that is raising costs and could push up repair times as
the industry stages an awkward recovery from its worst crisis.
Shortages are on the minds of executives at the Farnborough
Airshow near London, this year's largest aerospace expo, which
starts on July 18. 
    While a shortage of plane cabin staff has dominated
headlines due to recent flight cancellations, finding mechanics
also has executives sweating. Roughly $84 billion is expected in
spending this year on maintenance, repair and overhaul of
aircraft, according to Naveo Consultancy. 
    "We are struggling in a big way. We can't get enough
(workers)," said Abdol Moabery, chief executive of commercial
aerospace company GA Telesis LLC.
    Despite offering raises upwards of 10%, Telesis is working
harder to retain labor as soaring housing prices in the
company's South Florida location lead some workers to eye offers
in more affordable areas.
    The high-margin services industry is attractive for
planemakers like Boeing Co  BA.N , as air travel rebounds. In
2021, the U.S. planemaker forecast the global industry's need
for 626,000 new maintenance technicians over the next two
decades compared with 612,000 pilots.
    A shortage of aviation maintenance engineers, who certify an
aircraft's airworthiness, could lead to cancelled flights, or
delay appointments for repairs, executives said. 
    COVID-19 job cuts sped up a pre-pandemic trend of workers
retiring or switching to other industries like automotive, and
schools are not producing enough graduates to replace them.
    
    
    The average Federal Aviation Administration (FAA)-certified
mechanic is 53, or 11 years older than the average U.S. worker
as reported by the Bureau of Labor Statistics. Enrollment at
U.S. aviation maintenance technician schools grew 0.55% in 2020
after COVID-19 hit, compared with 13% in 2019, according to the
Aviation Technician Education Council (ATEC).
    "Recruiting mechanics has become noticeably more difficult
compared to the pre-crisis period," said Frank Bayer, who heads
human resources at Lufthansa Technik AG  LUFT.UL .
    Canada's Cascade Aerospace, which repairs military aircraft,
could attract roughly 100 workers a year during the pandemic,
when commercial aviation slumped and labor was available, said
company executive Scott Cadwell. Now, "it's crickets out there
for experienced workers."
     
    IMAGE MAKEOVER    
    In Quebec, trade group Aero Montreal is planning its first
industry-led campaign this fall using traditional and digital
media, along with influencers, to attract more students.
    Enrollment at ÉNA is down 20% compared with 2019, an
alarming sign for Montreal, the world's third-largest aerospace
center.
    "In two years, in three years, if nothing changes, if young
people continue to lack interest in our sector, we won't be able
to deliver our products,” warned Aero Montreal President Suzanne
Benoit.
    A Wells Fargo survey of aircraft maintenance, repair and
overhaul services providers showed the labor crunch worsening in
July, with 60% of those polled saying they saw a "meaningful
impact" from shortages compared with 35% in a prior survey.
    Unlike pilots, who can earn salaries of up to six figures, 
mechanics and other trades pay less and often come with late
shifts. According to an ATEC survey, the average entry-level
hourly rate for a mechanic was $22.36 in 2021.
    Alex Dichter, who leads consultancy McKinsey's travel,
logistics and infrastructure practice, said mechanics need an
image overhaul. 
    "If you were to poll high school students who didn't want to
be doctors, or lawyers or businesspeople and ask them what they
want to be ... relatively few kids talk about being mechanics,"
he said. "We've got a bit of catch-up to do on that front."    
    Lufthansa and Singapore Technologies Engineering Ltd
 STEG.SI  both said they are sweetening compensation for some
trades.
    Constant Aviation, which services private jets, recently
hiked technician pay by 10%, and introduced $15,000 signing
bonuses for qualified veterans to meet soaring demand.
    Booking maintenance slots, which once required a few weeks'
notice, must now be made six months in advance, said Kent
Stauffer, chief safety officer of the Cleveland-based company.
    Stauffer said the industry hurt itself by not paying more.
    "Now it's all catching up with us."
    
    SEEKING STUDENTS
    A 2022 Canadian Council for Aviation and Aerospace forecast
expects a shortage of 58,000 skilled workers by 2028. Yet
schools teaching maintenance, avionics and structures provide
less than a quarter of needed graduates, due to limited capacity
and poor completion rates.
    "Industry needs to develop its own training programs because
the colleges don't have the capacity to train what industry
needs," said Robert Donald, the council's executive director.
    Canada's KF Aerospace, which does heavy maintenance and
modifications for commercial aviation, is now doubling the
number of new recruits it trains from scratch, said chief
corporate services officer Grant Stevens.
    Such need is not lost on a new generation of workers.
    Just as ÉNA student Christophe Gagnon from Quebec received
more than one job offer, Frederik Gagnon, who is not related but
went to the same school in aircraft maintenance technology, said
he had no trouble finding work.
    Frederik Gagnon recalled landing a job interview less than a
day after applying.

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 (Reporting by Allison Lampert in Montreal and Abhijith
Ganapavaram in Bengaluru, Editing by Ben Klayman and Matthew
Lewis)
 ((Allison.Lampert@thomsonreuters.com; 514-796-4212; Reuters
Messaging: allison.lampert.reuters.com@reuters.net))