Talking to Owen McClave, Chief Executive Officer, SR Technics Group
AviTrader MRO: Owen, you have recently been appointed as the new CEO of SR Technics. Congratulations on your appointment. We wish you all the best and much success in your new position. Perhaps you've heard this question countless times already. However, it's the classic query posed to new CEOs. What have you set out to accomplish in your first 100 days in your new role?
Owen McClave: I am privileged to lead SR Technics as CEO, where I have been working since 2019 as Senior Vice President Engine Services. SR Technics has 90 years experience in this industry with many long term loyal and satisfied customers. For the upcoming months in this new role I want to engage with all stakeholders, customers, vendors, employees and partners to better understand the fast changing environment in which we now operate. Customers have different expectations, employees have different expectations and we in SR Technics cannot solely rely on our vast experience from the past to bring us into the future.
We will double our business in the next four years. We are building infrastructure in Zurich, opening new production facilities, and increasing our workforce by 500 people to extend our capabilities for the GTF and LEAP platforms.
I am privileged to lead SR Technics as CEO
AviTrader MRO: SR Technics has a rich history, originating as the technical arm of Swissair, and later establishing itself as an independent entity, navigating the market without the backing of an airline. Throughout its journey, SR Technics has successfully overcome various challenges and adapted to market shifts. At present, what do you perceive as the most significant challenges facing SR Technics and the MRO market in general?
Owen McClave: The MRO industry has recovered and is growing and this poses several challenges which must be addressed to ensure its sustained success. Effective labor and material cost management, tackling the shortage of qualified staff, and overcoming material supply chain disruptions are all critical areas that require attention. Third-party engine MRO providers with substantial in-house capabilities will have favorable trading conditions over the next decade.
From our perspective as an OEM service center, we feel our experience will be quite similar to that of the OEMs. Our global airline customers require the highest level of quality and having the OEM relationship supports that. SR Technics prides itself on having over 90% of repairs performed in-house to support the supply chain and having the OEM approvals as a licensed service center support this capability.
The MRO industry has displayed remarkable resilience during the past years, and when it comes to workforce availability, this is a global challenge for the year ahead. Nevertheless, SR Technics maintained its staff, and we are preparing for the increase in demand. Currently, SR Technics is one of the largest independent technical employers in the aviation sector in Switzerland with over 2,200 highly qualified employees worldwide. To meet the responsibility and the constantly growing customer needs, we invested a three-digit million number of Swiss francs in training programs, our test cells, modern machinery, digitization and growth at our Zurich location.
The MRO industry has displayed remarkable resilience during the past years, and when it comes to workforce availability.
AviTrader MRO: SR Technics operates in the MRO segments of Aircraft Maintenance, Engine Maintenance, and through STRADE, Component Maintenance. The recent investment in a new engine test cell implies that Engine Maintenance is the primary focus of the SR Technics. Would you confirm this assumption?
Owen McClave: Yes, our strategy is to focus the company on the core business of Engine Services to enable profitable growth, increase focus on developing repairs instead of replacing parts, increase usage of used serviceable material (USM). We plan to double our business by 2028 and have therefore launched our strategy “Take Off 2028” with the focus on growth in engine maintenance with our existing platforms CFM56 and PW4000. The main additional growth drivers will be the entrance into the new engine platforms GTF and LEAP.
AviTrader MRO: STRADE provides component solutions ranging from regional jets to widebody aircraft. This business is highly capital-intensive, considering STRADE's extensive inventory of components. Does the service also include providing components directly to the customer's warehouse?
Owen McClave: STRADE provides component solutions ranging from regional jets to widebody aircraft. This business is highly capital-intensive, considering STRADE's extensive inventory of components.
STRADE is a success story within the SR Technics Group and for its customers. Since its start, our subsidiary has grown quickly and independently, embracing the increasing importance of USM material in commercial aviation. With a keen market sense and investments in digital and warehouse operations, STRADE has built a sustainable business model that offers great value to its customers. The recently signed partnership agreements show that this can also be done in an asset flexible approach. STRADE serves airlines and MROs worldwide with a 24/7 customer service approach and local warehouses in Amsterdam, Miami, and Kuala Lumpur. Thus, ensuring fast and nearby support whenever and wherever our customers need it.
STRADE is a success story within the SR Technics Group and for its customers.
AviTrader MRO: The maintenance business is subject to continual evolution. From your perspective, what do you anticipate will be the most significant changes in the future?
Owen McClave: We all understand that there are supply chain challenges across the industry, partially driven by the challenges of the geopolitical situation, the reduction of capacities and the subsequent snap-back in demand that is occurring today. Market forces will prevail and supply and demand will balance out. Similarly we see labour and skill constraints. Market forces alone will not work here without considerable intervention and investment from industry. SR Technics will invest further in people through it`s World Class program where we value a holistic approach to human capital development and upskilling.
We anticipate a pivotal shift towards environmental sustainability, with a growing emphasis on energy-efficient processes and innovative technologies aimed at reducing carbon footprint. As the industry evolves, proactive measures to minimize environmental impact need to become integral to the core
principles of engine MRO, reflecting a broader commitment to a greener and more sustainable aviation sector.
We believe also that it is imperative to keep looking at automation and innovation as much as possible. Artificial Intelligence (AI) is with us to stay and we must embrace it. Opportunities exist around languages, inspection and big data. Overarching all of the above is the safety of the passenger which is the singular non negotiable.
