Robinson Helicopter Operators Should Prepare for Continued Price Increases and Extended Lead Times for Duration of 2023
As we enter the final quarter of 2022, Rotorcorp has prepared its annual Year End Maintenance Planning guide, designed to provide Robinson helicopter owners, operators, and maintainers who are approaching life limit or calendar overhaul with the information needed to make informed decisions associated with this major expense.
Along with your organization’s maintenance budget and operational considerations; factors like factory lead times, annual price increases, group order dates and tax year expensing can play an important role in planning and optimizing major year-end purchases. Special consideration is also given this year to the influence of labor and raw material shortages, logistics delays and inflationary pressure which is anticipated to be reflected in official 2023 pricing updates from Robinson Helicopter Company.
Robinson Lead Times
The year-end is typically Robinson’s busiest season, and accordingly, overhaul kit leads times tend to increase as the with the approach of the holidays. During a recent visit to Robinson Headquarters, Rotorcorp President Sean Casey discussed lead times and the status of back-ordered items with Lead Customer Service Representative Frank Nieto.
“(Robinson) continues to run into the same problems most major manufacturers are right now with our supply chain, manpower, vendor delays, etc., and we expect this to continue through the end of the 2023,” Nieto told Casey.
Nieto stated that he expects current lead times to reamain about the same through the end of 2022: 14-16 weeks for R22 Overhaul Kits, 18-20 weeks for R44 Raven I and Raven II Overhaul Kits and 8-10 weeks for R66 Overhaul Kits. These lead times may extend in December and January ahead of annual price increases.
Annual Price Increase & Forecast
While prices are always subject to change, Robinson Helicopter Company publishes updated annual retail prices in mid-January of each year. For the past decade, the annual price increase for overhaul kits has averaged 2.3% with an effective publication date around January 15th each year.
However, considering the previously stated factors of supply chain and labor shortages coupled with inflationary pressure across the economy, a significant jump is expected for 2023 to help Robinson recapture these costs.
Indeed, aircraft engine manufacturer Lycoming announced a 3rd Price Increase in July of 2022 and Robinson implemented a first in memory mid-year increase to try and keep up with its spiraling costs of production.
With more than 12 years of price history data, Rotorcorp has applied the formula used in years past and is projecting an approximate 3.5% bump for 2023 overhaul kit prices.
The “forecast” 2023 prices are for estimation purposes only and are not in any way approved or authorized by Robinson Helicopter Company. The method to calculate these forecasts relies on historical data and takes into consideration larger trends like global fleet demand, material costs, labor costs, and data from the Consumer Price Index (CPI) published by the Bureau of Labor Statistics for the Greater Los Angeles area for 2020 to date. Actual prices will not be published by Robinson until January 2023.
Group Orders Save Rotorcorp Customers Money
As one of the largest buyers of Robinson parts, Rotorcorp routinely places large scheduled orders consisting of multiple large customer orders. These scheduled group orders create opportunities for us to provide an even larger discount to our customers who participate in each one.
Considering the longer lead times and planning required, electing to participate in one of Rotorcorp’s scheduled group orders is a great way to save significantly over our everyday low prices.
Our remaining Scheduled Group Order dates are as follows:
- October – Completed
- November 16th, 2022
- December 7th, 2022 (Final calendar 2022 order)
- January 9th, 2023 (Final order with 2022 prices)
In addition to our scheduled group orders, Rotorcorp also processes several ad-hoc orders between the published dates.
If you are interested in learning more about the upcoming year-end opportunities for your parts needs, or if you would like to discuss your options and receive a quote, please contact Rotorcorp today at orders@rotorcorp.com. You can also call us over the phone at +1 404-424-9105 or via WhatsApp at +1 404-991-4208.
