FROM THE SHOP FLOOR Global Supply Chain Issues Reach Aviation

Semiconductor (chip) shortages have impacted everything from rental cars to cell phones, and now aviation is feeling the impacts.

In addition to a lack of toilet paper at Costco, the coronavirus pandemic also impacted the tech industry, most notably with semiconductors. Factories around the world were forced to scale back production to keep workers safe, but demand has only continued to increase. The result is a predictable mix of higher prices and a shortage of supply. Although much of the media coverage has focused on automakers and their production slowdowns, a shortage of semiconductors and other goods is impacting aviation this year as well.

Legacy Aviation Service’s RJ Gomez said a big Garmin retrofit provides a good example. The shop quoted a $200,000 upgrade, and he said the customer was pleased with the quote except for one major problem—Legacy couldn’t get the units delivered for between four and seven months. It took a job that should have been done within a few weeks of booking and pushed it to March.

Matt Isley at Aero Air is also seeing stretched lead times from Garmin, and up to 24 weeks from other avionics suppliers. But he said the biggest issue for them is rental cars. A big part of Aero Air’s business is aerial firefighting, where crews check out of the hotel and return the car every day, not knowing where they’ll be that night. That makes securing rental cars extremely challenging. “We’ve even had to rent box trucks at Home Depot,” he said.

And it goes far beyond the pilot crews and avionics shops. Eagle Creek Aviation’s VP of Maintenance Randy Morelock said tires are a common pain point. But, he added, “It’s not that you can’t get a tire, it just takes longer.” Aero Air, Legacy, and Eagle Creek are trying to be strategic for their customers and stock common items, such as tires and batteries. All three mentioned keeping more sets on the shelves to ensure customers aren’t stuck without. “We don’t want our customers to be grounded by a tire,” Gomez said.

Batteries are also an issue. Whereas previously any of the shops could pick up the phone and get a battery in the next day, now it could be two to four weeks. “I’ve never seen anything like it in my career,” Gomez noted.

Whereas electronics manufacturers are clearly facing a supply shortage, Morelock said labor shortages have hurt their suppliers as well. A vendor couldn’t make an appointment to borescope an engine because they didn’t have the staff, and vendors who produce items for panels are taking a week longer because they are having COVID staffing issues.

Gomez said the challenges are significant in terms of customer expectations, financial projections, and scheduling. One customer was planning to upgrade to higher horsepower engines on his Shrike, but the shop said it would take three months to build the new engines, and it expected payment up front. And now that job will take place in January or February when other customers are already on the schedule for their inspections, he said.

The shops are trying to be creative by using new vendors or working other contacts, but it takes time and patience. “It’s not dire, but it’s taking more work and more time to find the items,” Morelock said.

Some experts have said the semiconductor shortage won’t let up until at least 2023, while other items should come back into stock much sooner. At least, that’s what the shops are hoping. “People want to spend the money,” Gomez said. Now they need the goods.