Piston Engine Manufacturer Increase Prices While Lead Times Continue Spiral
On February 2nd, 2022 engine manufacturer Lycoming announced a second significant increase in pricing for engines and spare parts to take effect on orders placed after March 4th, 2022. In the announcement, Lycoming cites continued supply chain, raw material, and manufacturing difficulties combined with inflationary pressures for the price bump. Lycoming laid blame to these same issues just nine months ago when the company came out with a surprise across-the-board 14% price increase in July of 2022.
The announced increases will be applied “roughly” as follows:
New Engines: 10% Increase
Rebuild “Zero Time” Engines: 15% Increase
Overhauled Engines: 12% Increase
Cylinder kits: 15% Increase
Parts: 10% Increase
While the current increase is a little more targeted, when combined with the jump from July, these add up to 25-30% increases for crucial engines and spares required for the continued airworthiness of the global general aviation aircraft fleet. Additionally, Lycoming’s increases are at a rate nearly three-times the admittedly high US inflation rate of 7.3% for the preceding 12 month period according to website Statista. By comparison, Helicopter manufacturer Robinson Helicopter Company increased prices by just 4% for the 2022 period, or about half the inflation rate- despite that the company faces many of the same challenges cited by Lycoming.
Perhaps the most challenging issue out of Lycomig is not just the spiraling prices, but the extended and growing lead times. At time of this writing, Rotorcorp is still waiting on Cylinder kit orders placed in July of 2021 and has had lead times “bumped” numerous times to in excess of 12 months for some parts. Engines are now in excess of 8 months.
Rotorcorp is responding with increased rolling inventory replenishment orders to maintain critical spares stock to support our customers, but we are HIGHLY encouraging customers approaching 2200 hour service, or needing engine overhaul/replacement to place their cylinder and engine orders up to 9 months ahead of anticipated delivery.
We are diligently monitoring the situation and striving to deliver creative solutions to this critical and growing problem.