Southeast Asia’s MRO Sector Faces Alarming Technician Shortage

Competition within that MRO sector coupled with the talent leaving it to pursue work elsewhere has forced major players into being tensed about the need for a sustainable pool of aircraft technicians and engineers.

Companies of SIA Engineering Company, SIAEC, find ways to deal with decreasing birth rates coupled with the aging workforce in Singapore through proactivity in engaging with all forms of universities overseas to ensure a steady and diversified inflow of fresh talent. According to the vice president for human resources at SIAEC, Tan Hui Boon: “There may be signing bonuses needed in the short-term interest for staffing requirements, but they cannot be the answer for long-term labor generation.”.

“Sometimes, signing bonuses are needed to address urgent requirements. That is why we must look ahead. However, if we rely so much on signing bonuses to attract talent from an already limited pool of experienced personnel, it would escalate manpower costs to unsustainable levels,” Tan said at the MRO Asia-Pacific 2024 conference held in Singapore.

Tan was referring to the latest Boeing Technician Outlook, a projection of an estimated 716,000 new technicians in the next two decades, of which 103,000 will be required in Southeast and Northeast Asia. She worries that not enough would be provided locally in Singapore and therefore it must look elsewhere, overseas, for recruits.

Taiwan’s Evergreen Aviation Technologies (EGAT) is also feeling the pain of a low birth rate, along with the loss of talent to more attractive industries such as the microchip industry, where companies TSMC and Nvidia are leaders. Kin Chong, executive vice president at EGAT, said strict labor regulations prevent foreign skilled labor from entering the country, “making it worse for already diminishing experienced engineers, particularly those who have experience up to 10-15 years.”. These are the kinds of veterans who are highly needed in supervising newcomers and in conveying important knowledge.

Chong remarks that the labor crunch has compelled him to decline several business opportunities just to maintain safety and quality for the sake of the organization.

The persistent problem related to labor, as mentioned by Benjamin Scheidel, group director of airframe services at HAECO, also remains an important factor. Next to maintaining a steady supply of available workforce, investment in new digital technologies, including robotics and automation, should begin to minimize the need for human resources but boost engagement and productivity from the next generation of talent.

The current, compelling challenges now faced by the MRO industry make the strategic approach to talent development and retention more imperative than ever. Sector adjustment to a changing landscape and structuring of immediate needs and long-term sustainability across workforce generations is urgent.