Microeconomic analysis of military aircraft bearing restoration

The risk and cost of a bearing restoration by grinding program was analyzed. A microeconomic impact analysis was performed. The annual cost savings to U.S. Army aviation is approximately $950,000.00 for three engines and three transmissions. The capital value over an indefinite life is approximately ten million dollars. The annual cost savings for U.S. Air Force engines is approximately $313,000.00 with a capital value of approximately 3.1 million dollars. The program will result in the government obtaining bearings at lower costs at equivalent reliability. The bearing industry can recover lost profits during a period of reduced demand and higher costs.