The pandemic has had a major impact on the aerospace and defense industry, affecting the aerospace supply chain in many unique ways that have left businesses with different challenges to overcome in the next few years.
As production begins to ramp up again and new technologies come into the fold, aerospace and defense businesses may find it difficult to keep up and find the solutions they need to stay ahead of their competitors.
Read on to learn more about the challenges aerospace businesses are facing today within their complex supply chain and the solutions available to overcome them.
Aerospace Supply Chain Challenges
Staying Up to Date on New Technologies
Like many industries, the aerospace and defense industries can struggle to stay up to date with constantly changing technology that completely changes the way business processes are done. Stagnating with legacy systems or moving too slowly to adopt new technology can leave you at a competitive disadvantage now and in the future.
To always have access to the latest and greatest technology available, and stay one step ahead of your competition, you need innovation experts whose job is to know what businesses need and how to implement the technology to help them.
At Impact, our team of specialists are from many disciplines of business technology and are always looking for new ways to use technology to optimize and streamline processes.
Rising Costs of Equipment and Materials Within an Aerospace Supply Chain
With the rising demand and rising costs, cutting unnecessary costs can make a big difference for aerospace businesses. With automation and other technologies, businesses can save money by:
- Reducing wasted supplies by automating replenishment orders
- Minimize downtime due to breakdowns or part failures with preventative maintenance and proactive ordering of replacement parts
- Eliminate paper-based processes and digitize aerospace supply chain management
- Automate processes like data gathering, reporting, and analysis to free up human resources
Warehouse and Supply Chain Management
With the rise of industry 4.0 and the industrial internet of things, managing warehouses, factories, and supply has become more automated and streamlined than ever before.
Businesses that implement these new technologies can reap the benefits by reducing waste on supplies and taking advantage of a more transparent system for proactive repairs.
Additionally, the information gathered by more comprehensive data collection can give businesses more insights into their processes and operations to discover where they can be better optimized to increase productivity and efficiency.
Maintenance and Potential Downtime
A big challenge presented to businesses in aerospace and defense is having the right parts at the right time and in the right place. Doing this makes preventative maintenance easier which reduces the amount of downtime businesses experience day to day, ensuring that production never gets halted.
Having more transparency in an aerospace supply chain by implementing new technology improves monitoring and reporting which helps businesses get a better understanding of their systems to make more informed predictions. This lets businesses predict when a part might fail or when a machine will need maintenance and order replacements before the need becomes critical.
Related Blog: How Big Data is Changing the Aerospace Industry
Aerospace businesses can stay ahead of their needs and prevent unnecessary downtime by changing their supply chain approach from reactive to proactive.
Demand for Industry Talent
One challenge that businesses in many different industries are facing within their supply chain is finding and retaining top talent. A worker shortage can cripple business operations in many different areas, especially in aerospace and defense which requires specially trained, and in-demand, MBAs and specialists.
To combat this problem, businesses need to find and engage with the right potential applicants and improve employee experience through the use of new technologies and marketing strategies.
Recruitment marketing is a subsection of digital marketing that focuses on finding talent and making sure your business is seen as a desirable place to work. By expressing your core values, establishing strong messaging, and positioning yourself where your target applicants are looking, you can improve how applicants view your brand and culture.
Keeping Up with Cybersecurity Compliance & the Need for It
Because of the industry’s sheer complexity and constant evolution, cybersecurity compliance is a major challenge for most aerospace companies, but especially for those working with the Department of Defense (DoD). It’s tough for many reasons, mostly though because a lot of aerospace organizations operate with legacy systems, fragmented supply chains, and a mix of IT and operational technology—all of which must meet strict security standards.
Regulations like CMMC, NIST 800-171, and NAS9933 are extensive, detailed, and frequently updated, making continuous compliance a moving target. Adding to the difficulty, aerospace firms often rely on hundreds of partners and vendors, each of whom must meet the same standards to avoid introducing vulnerabilities.
How Does Cybersecurity Compliance Affect an Aerospace Supply Chain?
Because aerospace projects often involve hundreds of interconnected suppliers—each handling sensitive technical data—one weak link can jeopardize the entire network. Many of the modern regulations now require not only prime contractors but also their subcontractors to meet strict cybersecurity standards. Noncompliant vendors risk being removed from contracts, delaying production, and increasing costs across the supply chain.
This means aerospace companies must thoroughly vet, monitor, and support their suppliers’ compliance efforts, ensuring that every partner can securely handle critical and protected data.
Cybersecurity compliance strengthens the entire supply chain, building a trusted and resilient network capable of withstanding both regulatory scrutiny and real-world cyberthreats.
Important Cybersecurity Certifications for Aerospace Companies
1. CMMC: Without CMMC compliance, many aerospace contractors will lose access to DoD projects and funding opportunities. CMMC is a DoD framework that ensures all contractors and subcontractors handling Controlled Unclassified Information (CUI) meet specific cybersecurity standards.
Quick Facts:
- It’s mandatory for companies in the Defense Industrial Base (DIB), including aerospace firms
- Demonstrates the ability to safeguard sensitive defense data and maintain eligibility for government contracts
- Moves beyond self-attestation—requiring third-party verification for higher levels of compliance
2. NIST: Meeting NIST 800-171 is often the first step toward CMMC readiness and a signal that your systems are secure enough for defense work. NIST 800-171 outlines how organizations must protect CUI in non-federal systems. It forms the foundation of CMMC and is often a baseline requirement for federal aerospace suppliers.
Quick Facts:
- Helps establish strong cybersecurity hygiene, including access control, incident response, and system integrity
- Provides a roadmap to identify gaps and prepare for future CMMC audits
- Builds trust with partners by showing a commitment to standardized data protection
3. ITAR: This compliance protects both national security and your organization’s standing within the defense supply chain. ITAR regulates the export and handling of defense-related materials and technical data. Aerospace companies working with defense technologies must ensure that no unauthorized access—foreign or domestic—occurs.
Quick Facts:
- Requires strict control over digital data, including encryption, access control, and secure storage
- Violations can lead to severe fines, contract loss, or criminal penalties
- Encourages a higher level of cybersecurity maturity to prevent accidental export or data leakage
4. NAS9933: This bridges the gap between aerospace and defense cybersecurity standards—ensuring that every link in the supply chain meets consistent, measurable security requirements to protect critical aerospace data and systems.
NAS9933 is an emerging aerospace-specific cybersecurity standard developed by SAE International to help suppliers and manufacturers align with the growing cybersecurity demands of major aerospace OEMs and government contractors.
It provides a consistent framework for managing cyber risks across the aerospace supply chain.
Quick Facts:
- Tailored specifically to aerospace industry operations, addressing both IT and operational technology (OT) systems
- Aligns closely with NIST 800-171 and CMMC, helping suppliers demonstrate compliance with broader government and defense requirements
- Promotes uniform cybersecurity expectations across the entire aerospace ecosystem, reducing confusion from varying customer demands
- Helps smaller suppliers benchmark and mature their cybersecurity posture to meet OEM and DoD expectations
In Conclusion
New and innovative technologies are constantly changing the way things work within an aerospace supply chain. By automating old processes, streamlining operations, increasing performance, and gaining additional insights, businesses can use these innovations to improve the way they operate.
With the help of a managed service provider (MSP) like Impact, you can have access to a team of specialists who are always up to date on the newest trends and technology. We know exactly how to find the right technology and how to effectively implement it into your business.
Explore more ways that the modern supply chain is changing and what technologies have become must-haves for businesses in our new eBook: What Does a Modern Supply Chain Look Like? Or, explore our collection of blogs, videos, and other helpful content on our Resource Center.