Maintenance Repair & Operations (MRO) Procurement Intelligence

In this Maintenance Repair & Operations (MRO) procurement intelligence report, we have estimated the key cost components associated with the service. Labor, warehousing, rent and utilities, technology or IT infrastructure, and overheads. Other costs can include transportation, marketing, legal or tax. Labor forms the largest component, accounting for a 40 - 50% share of the total cost structure. For proper maintenance management, technology or IT infrastructure plays an important role and can have a significant impact on the total cost. This can further include engineering systems, computerized maintenance management systems (CMMS), enterprise resource planning (ERP) software, and e-procurement systems.

There is an increasing demand for CMMS and e-procurement software from small and medium-sized organizations. Over the last four years, MRO suppliers have increasingly focused on letting their clients acquire commodities or materials through their online e-procurement system. With the help of these systems, companies in heavy industries are able to achieve 15 - 30% in cost savings. Companies have increased their indirect spending by 7 - 10% since 2021 as per McKinsey estimates.  It has also been found that chemical industries allocate around 11 - 17% of the total spending budget for their MRO spend. MRO spending in the steel industry accounts for only 14% of the total budget.

Similarly, on the other hand, transportation costs have increased by 15.5% in 2022 as per the Bureau of Transportation Statistics in the U.S. In the European region, due to high fuel prices and labor shortages, road freight transportation rates have increased by 13% in 2022. Supply chain problems are increasing for clients as a result of inflation, as it reached 6.9% in 2023. Profit margins are reducing for clients as a result of higher material costs. 

Order your copy of the Maintenance Repair & Operations (MRO) category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Operational Capabilities - Maintenance Repair & Operations (MRO)

  • Years in Service - 22%
  • Industries Served - 20%
  • Geographical Service Provision - 16%
  • Employee Strength - 13%
  • Revenue Generated - 13%
  • Certifications - 8%
  • Key Clients - 8%

Functional Capabilities - Maintenance Repair & Operations (MRO)

By Types of Services and Supplies

  • Infrastructure Repair and Maintenance - 20%
  • Production Equipment Repair and Maintenance - 20%
  • Material Handling Equipment Maintenance - 20%
  • Tooling and Services - 20%
  • Others - 20%

Rate Benchmarking

The geographical location, supply chain complexities, and scale of business play a vital factor in analyzing the rate benchmarking of the Maintenance Repair & Operations (MRO) category.

Labor costs vary significantly across developed and developing nations and can dramatically push up service costs. For instance, in 2023, the average salary for MRO managers ranged between USD 57,000 - 69,000 annually in developed countries such as the U.S., U.K., and Germany. Entry-level MRO positions can start from USD 41,000 annually. Most of the companies use automation to reduce labor cost or contract it to countries with low labor costs such as China or India. Most of the MRO-related jobs in India have a salary range of USD 6,000 - 8,000 annually. Salaries can increase based on other factors such as years of experience, industry, and knowledge expertise.

Supplier Newsletter

  • In November 2023, Henkel purchased Critica Infrastructure. The acquiree is a U.S.-based company that provides composite MRO services across critical oil and gas transmission lines and water supply systems. The deal aims to expand Henkel’s MRO business line and thereby strengthen its related support services.
  • In May 2023, A letter of intent has been signed between Rubix and Siemens for the distribution of Siemens' low-voltage motors. This is a pan-European partnership agreement where Rubix will be able to provide Siemens’ motors quickly to production sites and factories across the region. As part of carbon reduction efforts, these motors will not only help companies reduce electricity consumption by almost 70% but also provide better cost savings.
  • In April 2023, MSC Industrial Supply joined forces with MachiningCloud to be its exclusive e-commerce distributor of their MRO and metalworking products in the North American region. The latter’s advanced platform provides end-to-end machining application requirements through seamless integration into their CAD/CAM programming system. As per this partnership agreement, end users or consumers will be able to buy products or tools directly through MachiningCloud’s digital platform.
  • In April 2023, Rubix purchased Gapp Automation Ltd, which specializes in supplying motors, gearboxes, machine controls, transmission objects, and other automation products across a wide range of industries. The latter would become a part of the acquirer’s “Motion Control & Automation” business division. The deal would help the companies to expand its capabilities in the U.K. and the Irish markets and strengthen Rubix’s MCA sector.

List of Key Suppliers

  • Adolf Würth GmbH & Co. KG
  • Air Liquide S.A.
  • Applied Industrial Technologies, Inc.
  • MSC Industrial Direct Co., Inc.
  • Rubix Group International Limited
  • Linde Engineering
  • ERIKS Group
  • Sonepar Group
  • WESCO International, Inc.
  • W. W. Grainger, Inc.
  • RS Group (formerly Electrocomponents plc)
  • Critica Infrastructure (Henkel) 

Browse through Grand View Research’s collection of procurement intelligence studies:

Maintenance Repair & Operations (MRO) Procurement Intelligence Report Scope 

  • Maintenance Repair & Operations (MRO) Category Growth Rate : CAGR of 2.2% from 2024 to 2030 
  • Pricing Growth Outlook : 8% - 15% (Annually) 
  • Pricing Models : Cost Plus pricing, contract-based pricing model 
  • Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence 
  • Supplier Selection Criteria : By types of services and supplies (industrial and production equipment, construction and infrastructure repairs, material handling equipment, tools and supplies, etc.), operational and functional capabilities, quality measures, standards followed, certifications, regulations, and others 
  • Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to): 

  • Market Intelligence involving – market size and forecast, growth factors, and driving trends
  • Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
  • Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
  • Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions