Date of Graduation
12-2024
Document Type
Thesis
Degree Name
Bachelor of Science in Business Administration
Degree Level
Undergraduate
Department
Supply Chain Management
Advisor/Mentor
Scott, Marc
Abstract
The aerospace industry, a key driver of the global economy, generates annual revenues exceeding $750 billion and is projected to reach $1.38 trillion by 2030. A substantial portion of this revenue—approximately $300 billion—stems from raw materials, which are integral to the manufacturing of aerospace components. These materials, including titanium, aluminum alloys, palladium, and neon, are essential due to their unique properties, such as lightweight strength, heat resistance, and suitability for extreme conditions.
However, the industry's dependence on limited geopolitical suppliers has exposed vulnerabilities in global supply chains. The Russo-Ukrainian War has significantly disrupted the availability of critical materials like titanium, neon, and palladium, as both countries are major global suppliers. This disruption has led to severe shortages, inflated costs, and operational challenges for aerospace manufacturers. For instance, titanium sponge production in Russia and Ukraine, crucial for aerospace-grade alloys, has been severely impacted, while neon and palladium shortages have hindered semiconductor and thermal regulation technologies essential for modern aircraft.
In response, the aerospace industry faces urgent calls to diversify supply chains, explore alternative materials, and invest in sustainable practices such as recycling and advanced manufacturing techniques. These strategies aim to mitigate risks, reduce costs, and enhance resilience amidst geopolitical tensions. By addressing these challenges, the aerospace industry can sustain its pivotal role in advancing aviation, space exploration, and global technological innovation.
Keywords
Russo-Ukrainian War; Aerospace; Raw Materials; Global Supply Chain Management
Citation
Magness, A. (2024). How the Russia & Ukraine War is Contributing to Raw Materials Shortages in the Aerospace Industry. Supply Chain Management Undergraduate Honors Theses Retrieved from https://scholarworks.uark.edu/scmtuht/50
Included in
Business Administration, Management, and Operations Commons, Operations and Supply Chain Management Commons
