At the first-ever Vertical MRO Conference in Kelowna, British Columbia — the only conference dedicated to advancing the rotorcraft maintenance, repair and overhaul (MRO) sector — a panel of industry leaders agreed unanimously that the helicopter industry’s supply chain remains volatile, inconsistent and, at times, inexplicable.
“The biggest issue is the unpredictability of the pinch points in the supply chain,” noted Marc Leduc, MRO sales manager at VIH Aerospace, a helicopter manufacturing, maintenance, repair and overhaul (MMRO) provider. “There’s no rhyme or reason for why something’s delayed. Lately it’s been CherryMAX rivets that suddenly cost six dollars apiece — when did that happen?
“When you’ve got someone’s machine ripped apart and you can’t get the right length of CherryMAX rivet or a collar for the Hi-Lok, you’ve got big problems; it’s a hard thing to explain to the customer,” he added.
Panelists agreed that communication is the most powerful tool when dealing with ongoing supply chain issues. For MROs and original equipment manufacturers (OEMs) alike, maintaining transparency with customers about expected delays, realistic timelines, and inventory levels helps preserve trust.
“Communication with the customer is absolutely essential,” said Jasen Gerein, executive VP of business development at Heli-Welders Canada, an MRO provider. “You never want to over-promise. The more we know up front, the better we can plan.”
But Precision Aviation Group (PAG) chief sales and marketing officer Ketan Desai noted even extensive planning doesn’t always protect against disruption. “You can plan a year in advance, and three days before delivery find out material isn’t shipping for six weeks. Every day feels like a new fortune cookie: today’s challenge is tariffs, or supply chain, or labor.
“There are always challenges with somebody not holding up their end of the commitment, and it’s typically going to be OEMs or the manufacturers,” he added.
Several panelists emphasized that the labor shortage and supply shortages are deeply connected.
Panel moderator Jon Gray, manager of Vertical HeliCASTS and host of The Hangar Z Podcast, said “labor issues are something we don’t always consider. When there aren’t enough skilled workers in manufacturing or logistics, it affects the entire supply chain.”
Ultimately, there are a lot of moving pieces between the OEMs and the suppliers who provide parts to the OEMs, and labor shortages are occurring at all levels.
From an OEM perspective, Airbus’s Maria Aguirre said the airframe manufacturer does its best to plan and forecast, not short term, but three or five years in advance. “For our suppliers, we place purchase orders in advance to make sure they can also plan their operations and their investment,” she said. “It is tricky, I will acknowledge that. But we’re trying, as the OEM, to support and forecast in advance.”
PAG’s Desai countered that point, noting that OEMs across the board are wary of overstocking parts. “Whereas our model – like that of many other operators – is we’re not scared to make those investments so we can have those assets on the shelf to keep mission-critical helicopters flying,” he said.
“It’s a tough decision to make, because it’s a lot of capital,” Desai added. “But at the end of the day, we’re supporting mission-critical operations, whether it’s saving a life, transporting a dignitary, oil-and-gas, etc.”
Other MROs are resorting to creative measures, including part-outs — purchasing complete, serviceable aircraft to tear down for usable components.
“It kills us to have to do that… to lay out that chunk of money and tear down a perfectly good aircraft to its last nut and bolt,” said Heli-Welders’ Gerein. “But that is thinking outside the box, because if the raw materials aren’t available for us to buy from the OEMs, then we have to be able to come up with other solutions.”
Alpine Aerotech president Jeff Denomme weighed in on costs for MMROs from a Canadian perspective, noting that it’s difficult to maintain the inventory the company needs to keep operating.
“As a Canadian company, we’re already about 30 points behind on the exchange rate; all of our maintenance costs are in U.S. dollars, but we get paid in Canadian,” he said. “It’s tough for an operator or maintenance provider to stock that inventory. And with tariffs coming, you really have to keep a close eye on it.”
If supply shortages weren’t enough, tariffs have introduced another layer of chaos.
“It’s a disaster,” said PAG’s Desai. “You quote a customer $100,000 for an engine overhaul, and then all of the sudden there’s a $28,000 tariff on one component. How do you communicate that to the customer? Every time we think we have a game plan, there’s another curve ball.”
Tariff rates have been fluctuating frequently and inconsistently for much of 2025, leaving many companies to absorb costs rather than risk conflict with customers. “We’ve had invoices show up six weeks later for tariffs we didn’t even know about,” said VIH’s Leduc. “By that time, the customer’s already got their product back and paid the bill. You can’t call them back to ask for more.”
Leduc went on to ask the industry’s OEMs for help when it comes to communication with end users. “We need our partners and OEMs to stand with us when we’re bidding on contracts and pursuing new opportunities. They’ve got to back us up and help the end user understand the challenges we’re absorbing.”
Desai called on OEMs to loosen their grip on certain part licenses to help MROs better support operators. “The ecosystem of parts isn’t as strong as it used to be,” he said. “MROs have made the investments and have the capability — why not let them help?”
Despite the challenges discussed, the panel ended on a note of cautious optimism. Panelists agreed that the industry is stronger when it collaborates.
“We’re all dealing with it,” moderator Gray said. “But if we think creatively, communicate clearly, and plan together, we can keep helicopters where they belong — flying.”
