Small aerospace firms struggling in the wake of the financial crisis could pose a threat to supply chain security, it has been suggested.
Alex Dorrian, chief executive of the UK branch of Thales, the French defence electronics group, said that smaller aerospace companies failing could lead to severe problems further down the supply chain.
Speaking at the Reuters Washington Aerospace and Defence Summit, Mr Dorrian said: "There is a significant risk that some key suppliers will find themselves in difficulties."
Such a domino effect of companies failing highlights the importance of strong supply chain management, which can make the difference between a company going under along with a supplier and one which can adapt its supply chain quickly.
Ensuring a supply chain is as responsive as possible is one of the critical aims of supply chain management, as with markets changing in such a volatile manner at present, changes to businesses are likely to be quick and without notice.
Thales executive Dorrian explained that around 100 companies are now crucial to its own success, such is the importance of a reliable supply chain.
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