Robinson Helicopter Operators Should Prepare for Continued Price Increases and Extended Lead Times for Duration of 2024
Overview
As we enter the final quarter of 2023, Rotorcorp has prepared its annual year-end Maintenance Planning Guide. This guide is designed to provide Robinson helicopter owners, operators, and maintainers who are approaching life or calendar limit overhaul, or the replacement of major components 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 & mid-year price increases, group order dates and the end of the tax year are important factors in planning and optimizing major year-end purchases. This is especially as critical as delivery dates for engines, overhaul kits and major components extend further into the future. Like 2022 and 2023, the new post-covid reality for 2024 is that labor shortages, supply chain issues, and vendor delays, and inflationary pressure will continue to increase the time and cost of production.
Projected Robinson Overhaul Kit 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. If you are planning to overhaul in the first half of 2024, we are suggesting operators begin their orders 6-7 months in advance…this means orders placed by year end 2023 may realistically not deliver until June or possibly July of 2024. It is expected that lead times will reduce slightly after the January price increases take effect and order volume reduces into Q1 2024.
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Annual Price Increase & Forecast
While prices are always subject to change, Robinson Helicopter Company historically publishes updated annual retail prices in mid-January of each year. For the past 13 years, the annual price increase for overhaul kits has averaged 3.6%. Since January of 2022, the average overhaul kit price increase has climbed to 5.48% each year. Considering the previously stated factors of continued supply chain and labor shortages coupled with inflationary pressure across the economy, a significant jump is expected for 2024.
In both 2022 and 2023, Robinson implemented interim price increases in July of each year. Unless there are significant shifts to a multitude of factors, Operators should be prepared for a mid-year price increase in July of 2024.
Be advised that these forecast 2024 prices are not official and are not in any way approved or authorized by Robinson Helicopter Company. Rotorcorp performed an analysis of historical data, global fleet demand, and increased material and labor costs to calculate these forecasts. Calculations rely on historical data and takes into consideration larger trends like increased global fleet demand, increased material and labor costs. We also referenced Consumer Price Index (CPI) data published by the Bureau of Labor Statistics for the Greater Los Angeles area for 2023 to date. Actual price changes, if any will not be published by Robinson until January 2024.
Historical & Forecast Overhaul Kit Pricing
Group Orders
As one of the largest suppliers of Robinson parts, Rotorcorp routinely places large scheduled orders consisting of multiple large customer orders to Robinson. 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 our scheduled group orders is a great way to save significantly over our everyday low prices.
Remaining Scheduled Group Order Dates:
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October 16th, 2023
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November 15th, 2023
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December 8th, 2023(Final calendar 2023 order)
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January 8th, 2023 (Final order with 2023 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 us.
Message From Rotorcorp CEO Sean Casey
As Rotorcorp concludes its 12th year in business, our team is filled with gratitude for the opportunity to serve our customers around the world. For us, 2023 began and ended with a singular focus of delivering impactful solutions to Robinson owners, maintainers and pilots. I could not be more excited to announce the launch of two new Rotorcorp initiatives that achieve this goal: The R66 12-Year Inspection Kit and our Engine & Overhaul Kit Reservation Program designed to soften the negative impact our customers are experiencing from continued long lead times. From all of us at Rotorcorp, thank you!
Engine & Overhaul Kit Reservation Program
Rotorcorp has committed $3.5M to secure a total of 60 Lycoming Engine positions with deliveries through 2025. You can secure these positions with just a small deposit, then be matched with an airframe overhaul kit coordinated to deliver with the arrival of your engine. With our managed approach, Rotorcorp stands in line for you- our customer.
Delays of major components can be expensive and frustrating. Not only do we handle the wait, but you get hassle-free, cost-effective and on-time delivery of your helicopter parts anywhere in the world!
R66 12- Year Inspection Kit
With its original FAA type certificate approval in November 2010 and production commencing in 2011, the first wave of Robinson R66 helicopters are now reaching their 12-year calendar limit in 2023. In 2022, Robinsons turbine R66 surpassed the company’s flagship Raven II in sales, a trend that is expected to continue. With nearly 1400 of the incredibly successful helicopters now in operation, the number reaching 12 year limits will scale up rapidly going forward.
The well-provisioned R66 12-Year Kit developed by Rotorcorp provides operators with enhanced control over their helicopter’s maintenance schedule and budget.
