06 Feb 2026

Used Serviceable Material: The Secondary Market’s New Centre of Gravity

When new aircraft parts are delayed, grounded or priced beyond reach, the secondary market stops being a fallback and starts becoming a strategy. Used Serviceable Material, or USM, has moved from the margins of maintenance planning to the centre of operational and asset decisions. What was once treated as a cost-saving alternative is now a lever for reliability, cash preservation, and asset value control.

This shift matters because the aviation supply chain has changed structurally. Long lead times, production bottlenecks, and capital pressure have made access more important than origin. Operators, lessors, and MROs are no longer asking whether USM is acceptable. They are asking whether their USM strategy is robust enough to protect dispatch reliability and residual value at the same time.
 

What is Used Serviceable Material (USM)?

Used Serviceable Material refers to aircraft components that have previously been in service, removed from an aircraft or engine, inspected, certified, and approved for reuse. These parts are sourced from teardowns, part-outs, or surplus inventories and are released back into the market with full airworthiness documentation. USM is not scrap and it is not informal trading. It is a regulated, traceable segment of the aftermarket designed to keep aircraft flying safely while controlling cost and downtime.

 

Why it matters

• USM parts are materially cheaper than new components
• Availability is often faster than OEM supply
• Certification standards mirror those applied to new parts
• USM supports both operational continuity and cost discipline

At scale, USM is not just maintenance input. It is a commercial instrument that affects cashflow, asset value, and lifecycle planning.
 

Why is USM demand rising now?

The rise in USM demand is a direct response to structural pressure in the aviation supply chain. New parts are delayed, repair slots are constrained, and pricing has become unpredictable. In that environment, waiting is no longer neutral. It carries real operational and financial risk. USM provides speed, flexibility, and optionality at a time when certainty is scarce.

 

What is driving the shift

• Extended OEM lead times: New components are often unavailable when needed
• Maintenance bottlenecks: MRO capacity constraints increase downtime risk
• Budget pressure: Operators are protecting liquidity and margins
• Fleet ageing and mid-life exposure: Older assets require faster, more flexible parts access
• Operational reliability focus: Dispatch protection now outweighs brand-new preference

USM demand is not cyclical. It is being pulled by structural changes in how fleets are supported.

 

Who uses USM in today’s market?

USM is used across the aviation ecosystem, not by one type of participant. Its relevance depends on exposure to uptime risk, cost sensitivity, and asset lifecycle stage rather than fleet size or business model. The common thread is the need to balance reliability with capital discipline.

 

Primary USM users

• Airlines:To manage maintenance costs and protect dispatch reliability
• Maintenance, Repair, and Overhaul providers: To reduce turnaround time and manage spares availability
• Aircraft lessors: To support mid-life assets and control maintenance reserves
• Asset owners and investors: To extract value from retired or part-out aircraft
• Part traders and teardown specialists: To optimise asset disassembly and resale strategies

USM sits at the intersection of operations and asset management, making it relevant well beyond maintenance teams.

 

How does USM enter the supply chain?

USM enters the market through controlled and documented processes. Parts are removed, evaluated, certified, and released with traceability that supports airworthiness and regulatory compliance. The value of USM depends on the discipline of this process.

 

How USM is created and supplied

• Aircraft or engine teardown: Assets are disassembled at end-of-life or during fleet transitions
• Component inspection and testing: Parts are evaluated against airworthiness standards
• Certification and documentation: Approved release certificates are issued
• Inventory classification: Parts are categorised by condition, cycles, and applicability
• Market placement or pooling: Components are sold, leased, or placed into rotable pools

A weak process destroys value. A strong one turns retired metal into liquid inventory.

 

What components dominate the USM market?

Not all parts behave the same in the secondary market. Demand concentrates around components that are expensive, failure-prone, or operationally critical. These components drive most USM value and volatility.

 

High-demand USM categories

• Engine components: Blades, casings, and life-limited parts
• Avionics: Line replaceable units and control electronics
• Landing gear and structural assemblies: High-cost, long lead-time items
• Wheels and brakes: Consumables with constant replacement demand

Understanding which parts matter most is central to teardown planning and inventory strategy.

 

What are the risks in relying on USM?

USM delivers value, but only when risk is actively managed. Weak controls, poor documentation, or aggressive sourcing can quickly turn savings into exposure. The risk is rarely mechanical. It is usually commercial or reputational.

 

Key USM risk areas

• Traceability gaps: Incomplete records undermine airworthiness confidence
• Certification quality: Inconsistent release standards reduce market trust
• Price volatility: High-demand components can spike sharply
• Inventory obsolescence: Poor forecasting leads to stranded parts
• Counterfeit exposure: Weak sourcing controls increase compliance risk

USM rewards discipline. It penalises shortcuts.

 

How does USM affect asset value management?

USM strategy is no longer separate from asset value strategy. Decisions taken during mid-life or teardown directly influence residual value, recovery rates, and return on invested capital. Assets are no longer valued only by their remaining flying life, but by the recoverable value of their components.

 

 

USM is where technical, commercial, and financial decisions converge.

 

Conclusion: Is USM a cost lever or a value strategy?

Used Serviceable Material has moved beyond being a cheaper alternative to new parts. It is now a core element of how operators protect reliability, how lessors manage exposure, and how investors extract value from assets across the lifecycle. As supply chains remain tight and fleets age unevenly, the importance of USM will only grow. The differentiator will not be access to parts, but the quality of strategy behind them. Are you managing parts like inventory, or like revenue?
 

FAQs

 

Q. Is Used Serviceable Material safe to use?

A. Yes. USM components must meet the same airworthiness and certification requirements as new parts before entering service.

Q. How much cheaper is USM compared to new parts?

A. Savings typically range from 20 to 60 percent, depending on component type and market demand.

Q. Does USM affect aircraft reliability?

A. When properly sourced and certified, USM supports dispatch reliability by improving parts availability.

Q. Can USM be used on leased aircraft?

A. Yes, subject to lease terms and compliance with technical and documentation requirements.

Q. Why is USM demand increasing across the industry?

A. Supply chain delays, cost pressure, and the need for faster maintenance solutions are driving sustained growth