CATEGORY

Maintenance Repair & Operations (MRO)

MRO depicts the industry that handles spares and industry supplies that are needed for segments such as bearings and power transmission products, electrical supplies, fasteners, lubricants, filters, PVF, fluid power, safety supplies, HVAC, plumbing etc. used in multiple industries.

Beroe LiVE.Ai™

AI-powered self-service platform for all your sourcing decision needs across 1,600+ categories llike Maintenance Repair & Operations (MRO).

Market Data, Sourcing & Supplier Intelligence, and Price & Cost Benchmarking.

Schedule a Demo

Category Alerts


CATEGORY ALERTS

Avnet expands in Germany

July 05, 2022
alert level: Medium

Become a Beroe LiVE.Ai™ Subscriber to receive proactive alerts on Maintenance Repair & Operations (MRO)

Maintenance Repair & Operations (MRO) Industry Benchmarks


Savings Achieved

(in %)

The average annual savings achieved in Maintenance Repair & Operations (MRO) category is 13.10%

Payment Terms

(in days)

The industry average payment terms in Maintenance Repair & Operations (MRO) category for the current quarter is 79.3 days

Compare your category performance against peers and industry benchmarks across 20+ parameters on Beroe LiVE.Ai™

Category Strategy and Flexibility

Engagement Model

Supply Assurance

Sourcing Process

Supplier Type

Pricing Model

Contract Length

SLAs/KPIs

Lead Time

Supplier Diversity

Targeted Savings

Risk Mitigation

Financial Risk

Sanctions

AMEs

Geopolitical Risk

Cost Optimization

Price per Unit Competitiveness

Specification Leanness

Minimum Order Quality

Payment Terms

Inventory Control

Meet Abi

The World’s first Digital Market Analyst

    Schedule a Demo
    Meet Abi

    The World’s first Digital Market Analyst

    Abi, the AI-powered digital assistant brings together data, insights, and intelligence for faster answers to sourcing questions

    Maintenance Repair & Operations (MRO) Suppliers


    7,149
    Total Suppliers
    160
    Diverse Suppliers
    76
    Normalized Supplier Rating
    Maintenance Repair & Operations (MRO) Supplier

    Find the right-fit maintenance repair & operations (mro) supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

    Sample Supplier
    Company
    WW Grainger
    Location
    Jackson, Mississipi
    Duns number
    3862211

    D&B SER Rating

    dnb logo

    Up to 3 months

    1 9
    3
    Low Risk High Risk

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    Moody`s ESG Solution
    ESG Profile

    Company and Sector Performance
    44

    100
    Limited (1)
    ESG Perfomance (/100)
    Environment
    54
    Social
    37
    Governance
    51
    6 Domains Performance (/100)
    Business behaviour
    42
    Human rights
    49
    Community Environment
    55
    Corporate governance
    56
    Human resources
    27
    Security Scorecard
    85

    Threat indicators
    B
    89
    Network Security
    Detecting insecure network settings
    A
    100
    Hacker Chatter
    Monitoring hacker sites for chatter about your company
    D
    69
    DNS Health
    Detecting DNS insecure configuration and vulnerabilities
    B
    80
    Application Security
    Detecting common website application vulnerbilities
    B
    83
    Endpoint Security
    Detecting unprotected enpoints or entry points of user tools, such as desktops, laptops mobile devices, and virtual desktops
    A
    100
    Cubic Score
    Proprietary algorithms checking for implementation of common security best practices
    B
    84
    Patching Cadence
    Out of date company assets which may contain vulnerabilities of risk
    A
    100
    Social Engineering
    Measuring company awareness to a social engineering or phising attack
    A
    100
    IP Reputation
    Detecting suspecious activity, such as malware or spam, within your company network
    A
    100
    Information Leak
    Potentially confidential company information which may have been inadvertently leaked

    Industry Comparison
    grainger.com
    Industry average
    Adverse Media Appearances
    Environmental Issues
    0
    Workforce Health Safety Issues
    0
    Product Service Issues
    1
    Human Rights Issues
    0
    Production Supply Chain Issues
    0
    Environmental Non Compliance Flags
    1
    Corruption Issues
    0
    Regulatory Non Compliance Flags
    1
    Fraud Issues
    0
    Labor Health Safety Flags
    0
    Regulatory Issues
    1
    Workforce Disputes
    0
    Sanctions
    0
    esg energy transition
    55
    Discrimination Workforce Rights Issues
    0
    esg controversies critical severity
    No

    Maintenance Repair & Operations (MRO) market frequently asked questions


    The MRO market share was valued at $605 billion as of 2018.

    The MRO industry overview by Beroe shows that the high maturity market regions are US, UK, Germany, France, Netherlands, and Belgium. The medium market maturity regions are Japan, China, India, Australia, South Africa, Canada, and Brazil.

    The current MRO trends based on Beroe's analysis are inflation of MRO spare part categories from 8-12% due to trade war and lack of target of any specific MRO category with dependence on raw material usage specific categories such as power transmission, tools, and fasteners. These changes are expected to kick in by 2020.

    As per Beroe's MRO market analysis, the MRO market share is expected to increase at a CAGR of 1.72 percent and reach $660 billion by the end of 2020.

    One of the key drivers of the MRO market is the fact that MRO outsourcing is not a core competency for many buyers which is increasing adoption of MRO outsourcing in mature markets. This awareness is found to be low in less mature markets such as APAC, MEA, and LATAM. A huge scope for the MRO market lies in the shale gas processing equipment market.

    Maintenance Repair & Operations (MRO) market report transcript


    • The global MRO market is valued at $622 billion​

    • The global market is forecasted to grow at a CAGR of 1.5 percent and reach $660 billion by the end of 2023​

    • Mature Markets: North America, Western Europe​

    • Fast Maturing Markets: APAC, LATAM, and Australia​

    • APAC accounts for approx. 37 percent of the global MRO market, and it is expected to remain in the similar range (34 percent-38 percent) until 2023​

    maintenance repair operations

    MRO in Mining Industry: Global Outlook

    Mining companies are expected to spend more on MRO activities to improve the operational efficiency of the equipment by reducing the downtime and lower the spending on new capital equipment.

    • The global mineral output was at 11.37 billion metric tons in 2014 and  expected to grow at a CAGR of 1.8% to reach 12.01 billion tons billion by the end of 2017. The slow growth of mineral output was due to low commodity prices and low demand from China, and this trend was expected to continue until 2017.

    • Coal accounts for about 74% of the total mineral output and was expected to remain in the similar range (73–75%) until 2017. 

    • APAC contributes to 2/3 of the mineral output and is expected to grow slower than the global average, due to the slow economic growth of China. Although LATAM and Africa contribute to around 14% of the mineral output currently, they are expected to witness maximum growth compared to other regions, owing to the participation of global players and changing local regulations. 

    • Global exploration spend declined by about 31% to $20 billion in 2014, as major miners cut short their exploration spend, due to the falling commodity prices

    The Key Market Trends 

    • Per MRO industry trends 2021, The intensifying need to curb cost and improve product quality has been the key driving force for the adoption of industrial MRO services in the manufacturing sector. Spending on MROs is helping manufacturing sectors attain consistency in production and decrease downtime in the production process.  

    • Citing stringent government norms, manufacturers are optimizing their facilities and production processes to reduce their overall energy consumption by conducting lifecycle analyses of their product offerings and leveraging the required MRO service in order to practice lean manufacturing. This is another one of the key MRO trends.

    • Due to slowdown in the mining industry and the falling commodity prices, mining companies have been compelled to refrain from high capital expenditures and resort to  technologically intensive investments, such as mine technology products, which enable them to enhance the production level by improving the equipment performance and reducing the downtime

    Global MRO Industry Trends

    • Increasing levels of MRO outsourcing and adoption of the Integrator model for MRO sourcing in developed regions like North America and Western Europe signal increasing buyer maturity and willingness to partner with suppliers. 

    • Global suppliers are entering new geographies in developed regions through mergers and acquisitions (M&A) thus offering multi-location solutions to global buyers.

    • Customers expect MRO integrated suppliers to provide highly tailored solutions, with real-time access to information and just-in-time delivery for products and services. 

    • Additionally, owing to increased information access, the demand for transparency is consequently increasing.

    • The fragmented MRO markets in APAC and MEA have produced a lucrative opportunity for global distributors and integrators to tap this market.

    • These regions are considered to be developing regions, in terms of MRO sourcing maturity, with original equipment manufacturers (OEM) and distributors being the preferred sourcing channels. E-procurement is gaining popularity in Asian countries including India and China. Increasing purchase of low-value, high-volume spend is driving the B2B platform in these regions.

    • APAC is gradually witnessing a rise in the adoption of professional services and is likely to remain a key manufacturing center for spare parts that are supplied to various countries.

    • In addition, increasing standardization of services and equipment in important manufacturing processes is expected to boost the MRO market growth. The development of leading-edge manufacturing methods in APAC owing to surging R&D investments is further projected to drive market revenue.

    • MRO consolidation is steadily implemented by mature Indian buyers. Companies such as TATA Steel, BASF, Shell, and PepsiCo. are engaging in consolidation activities through established MRO distributors such as Rexel India.

    Global MRO Industry Drivers and Constraints

    • MRO sourcing not being a core competency of most buyers, mature markets are increasingly seeing the adoption of MRO outsourcing and integrated supply solutions and are reaping the benefits in terms of hard cash savings and manpower reduction. The awareness of the same is low in maturing/less mature markets, such as APAC, MEA, and LATAM.

    • The large scope for the MRO market lies in the shale gas processing equipment market, by component type, which includes compressors and pumps, internal combustion engine, heat exchangers, electrical machinery, and measuring and controlling devices

    Market Overview

    The MRO industry is propelled by industrial production. While the global industrial output is gradually increasing, the same holds true for the global MRO market. The cost of products is primarily driven by fluctuations in raw material and oil prices, labor cost, raw proprietary vs. non-proprietary, and complexity of the design.

    The major cost components include:
    Raw Material (Costs associated with the various materials used for manufacturing the parts), Labor (Prevalent market wage rates for labor), Administrative costs & overheads (Costs associated with the office supplies, sales office cost, accounting fees, MRO marketing, insurance, interest, legal fees, rent, repairs, supplies, taxes, etc.) 

    MRO buyers relish the online experience of e-procurement, mainly from tier-1 MRO B2B suppliers. Moreover, e-commerce enables them to focus more on tail spend and ensures that c-part sourcing is streamlined into Spend Under Management (SUM). This eventually helps them to save cost.

    Summary

    MRO stands for maintenance, repair, and operations and it refers to the supplies consumed such as industrial equipment, consumables, furniture, and plant supplies required for upkeep. The MRO market was valued at over $600 billion in 2018 and by 2020, it was expected to surpass $660 billion. The high maturity markets include the UK, the US, France, Belgium, the Netherlands, and Germany. The medium maturity markets include Canada, India, Japan, China, Africa, Brazil, and some parts of Western Europe. The major end-use industries include food and beverages, CPG, mining, automotive, technology, pharmaceutical, and oil and gas.

    According to the MRO industry trends, a trade war is predicted which can cause inflation of up to 12% in MRO spare parts. The categories that make use of raw material will be affected as a result. If measures are taken to avoid this, market players can lower the impact by a high level. Experts have recommended that those products which are OEM-driven or critical ones should focus on long-term contracts. This can help provide big discounts and can save from tariff effects to a certain level. One of the expert recommendations is to focus on locally sourced spare parts.

    The global MRO trends include global suppliers focusing on developed regions and making an impact there with the help of mergers and acquisitions. This has given an opportunity for global buyers. Buyers are more aware and so they require high transparency from MRO suppliers. Buyers are expecting customized solutions and they require information access and timely delivery of products and services. Due to the fragmented market, integrators and distributors have lots of opportunities. The MRO spend analysis shows that some KPIs include lead-time for product delivery, innovation for potential, inventory turnover ratio, and service level improvements. The MRO stock is important to understand too.

    Experts state that industrial production is leading to an expansion of the MRO market. In Asia, one of the trends is e-procurement. India and China are particularly focused on this. Some companies in India such as PepsiCo and TATA Steel are engaged in MRO consolidation with the help of MRO distributors. The benefit of e-procurement is enjoyed by B2B suppliers who are in the Tier-1 category. E-commerce has many benefits and one of them is that it enables buyers to focus on tail spend. This helps in streamlining the C-part sourcing into the SUM. This can help cut down on costs.

    MRO Market analysis shows various drivers and constraints. MRO outsourcing is on the rise whereby high-cost savings and lower need for labor are some of the benefits. At present, medium and low maturity markets such as LATAM, APAC, and MEA are not immune to this and, as such, have not leveraged this opportunity. There is potential in the shale gas processing equipment market for MRO. There are many cost drivers for products including oil prices and raw materials. The main cost drivers for manufacturers include design, labor cost, oil price fluctuation, and raw materials.