Discover the top five aerospace and defense supply chain challenges of 2024 from Resilinc’s exclusive EventWatchAI data.
The aerospace and defense sectors operate in some of the most complex and highly regulated supply chains in the world. With geopolitical uncertainties, rapid technological advancements, and increasing demands for efficiency, aerospace and defense supply chains faced a unique set of challenges in 2024. In this blog, we’ll explore the top five aerospace and defense supply chain challenges, along with insights into how organizations can use aerospace and defense supply chain risk management to mitigate risks and adapt to the shifting landscape.
Top 5 Aerospace and Defense Supply Chain Disruptions in 2024
According to Resilinc EventWatchAI data, aerospace and defense supply chain disruptions increased a notable 35% YOY from 2023 to 2024—up from 9,188 disruptions in 2023 to 12,356 disruptions in 2024. Below is an overview of the top five disruptions to aerospace and defense in 2024:
- Factory Fires (1,305 Disruptions)
- Labor Disruptions (1,182 Disruptions)
- Business Sales (828 Disruptions)
- Extreme Weather (770 Disruptions)
- Factory Disruptions (723 Disruptions)
#1 Factory Fires
Factory fires continued to pose a major supply chain risk, causing production disruptions, inventory loss, and transportation delays. In 2024, they remained the top disruption for the aerospace and defense industry and all sectors tracked by Resilinc for the sixth consecutive year. However, incidents are declining, with a 25% drop in aerospace and defense and a 20% decrease overall year over year. This improvement stems from stricter factory inspections and maintenance post-pandemic. According to Bindiya Vakil, Co-Founder and Executive Chairwoman at Resilinc, better cleaning, electrical inspections, and adherence to safety protocols—previously deprioritized during COVID—have helped reduce fire risks.
#2 Labor Disruptions
Labor disruptions in aerospace and defense surged 33% in 2024, reaching 1,182 incidents compared to 887 in 2023, driven by strikes, layoffs, and protests. The most significant strike was the 53-day Boeing machinists’ strike which lasted from September 13 to November 4, involving 33,000 workers and costing Boeing and its suppliers $9.7 billion. The company also reported $6 billion in quarterly losses and later announced layoffs affecting 10% of its 170,000 employees.
#3 Business Sales
Business sales led to 828 disruptions in 2024, often linked to bankruptcies, mergers, and acquisitions. Bankruptcies surged 146% year-over-year (YOY), while corporate restructurings rose 110% YOY. Mergers and acquisitions (M&A), ranking as the sixth-largest disruption in aerospace and defense, saw 628 recorded incidents in 2024. Notable bankruptcies and restructurings included Spirit Airlines filing for Chapter 11 in the U.S., while Lynx Air and Jetlines ceased operations in Canada. Major M&As included Boeing’s $4.7B acquisition of Spirit AeroSystems, AeroVironment’s $4.1B acquisition of BlueHalo, and Honeywell’s $1.9B acquisition of CAES, all aimed at strengthening aerospace and defense capabilities.
#4 Extreme Weather
Extreme weather disruptions surged 121% YOY. Floods increased 216%, power outages nearly 200%, and hurricanes 101%, aligning with an above-average hurricane season featuring 18 named storms. These events caused widespread flight disruptions, delays, and operational challenges, increasing costs and safety risks for airlines. In 2024, the Department of Defense (DOD) released its “Climate Adaptation Plan” to tackle climate-related threats. The plan prioritizes climate-informed decision-making, a climate-ready force, and resilient infrastructure.
#5 Factory Disruptions
Factory disruptions—including shutdowns, evacuations, and labor accidents—rose 28% YOY, contributing to a 230% surge in supply shortages. The Boeing machinists’ strike played a major role, halting production of key aircraft models like the 737 Max, 777, and 767. After the strike ended, Boeing paused production in November to implement a safety management system before resuming operations in December. Further complicating matters, the FAA capped Boeing’s 737 Max production at 38 units per month following the Alaska Airlines 737-9 Max door plug incident in early 2024. This restriction, combined with supplier issues, nearly halved Boeing’s output in Q1 2024.
Navigating Future Aerospace and Defense Supply Chain Challenges
The aerospace and defense supply chain faced significant challenges in 2024, from factory disruptions and labor strikes to extreme weather and supply shortages. As the industry navigates an evolving landscape shaped by geopolitical shifts, regulatory changes, and economic pressures, staying informed is crucial for building resilience and maintaining a competitive edge.
To stay ahead of these challenges, download our Spotlight on Aerospace and Defense Supply Chain Trends. This in-depth report provides exclusive data on key disruptions, commodities to watch, emerging policies, and proven strategies to strengthen supply chain resilience. Gain the insights you need to anticipate risks, adapt to industry trends, and optimize your aerospace and defense supply chain strategy for the future.
