Release date : 2022-10-07

Supply Chain Challenges Faced by Aviation

Aerospace supply chains have become more fragile due to greater globalization, increased complexity, as well as price inflation. Staffing shortages have caused airports to cancel thousands of flights, while aircraft manufacturers are experiencing longer lead times on their production lines.

The economic unrest has instigated a wave of new challenges, with sanctions and conflict restricting the flow of critical resources.

As demand for commercial, civil and defense aviation recovers, the difficulty for companies is returning employee headcount to pre-pandemic levels and possessing all the fundamental skills.

The combined effects of these underestimated disruptions has made it even more evident that supply chains, no matter how mature, are far more unadaptable than to be believed. Operational strategies currently focused on digital should also include a strong risk preparedness component, greater transparency and sustainability.

This is not the first time, nor will it be the last, when a major disruption in aviation industry has presented itself; the key question is how can respond now, and in the future. Maintaining profitability and a healthy balance sheet during such an event is certainly achievable.

Underestimating the next set of global disruptions is perhaps inevitable (we cannot know the future). However, companies which take proactive balanced steps to mitigate supply chain risks and increase supply chain visibility and durability are more likely to be able to enjoy continued success and profitability.