Falling revenue over the past five years has resulted in greater consolidation among companies, strong competition and falling industry participation. The total number of industry establishments has decreased at an average annual rate of 1.5% to an estimated 8,758 during the five years to 2013.  

The industry has a low level of market share concentration. As a result, competition is high and there is no one market leader. “The nature of the industry means that mechanical workers can own their own company and perform the work themselves,” says IBISWorld industry analyst Lauren Setar.  

“A high number of nonemployers is another sign of its competitiveness and demonstrates the inability for a small number of companies to control the market.” The industry is maturing, and larger companies, such as major players General Electric Aviation, Boeing, General Dynamics and United Technologies Corporation, are looking for ways to expand their presence in the market through nonorganic growth. 

Falling capacity among major airlines, a decline in the number of active aircraft and hours flown and a drop in recent aircraft accidents have resulted in less demand for Aircraft Maintenance, Repair and Overhaul industry services. “Additionally, as the total trade value decreases, producers demand less air transportation and, therefore, less MRO services,” adds Setar. Overall, IBISWorld estimates the recession's effects caused revenue to grow at an average annual rate of just 0.1% over the five years to 2013.