According to www.thescxchange.com, more than 80% of U.S.-based CEOs estimate that up to 20% of their revenue would be at risk if their top three suppliers were disrupted for two weeks.
Risk Exposure and Revenue Impact
The findings come from Proxima’s Global Supply Chain Resilience Outlook, based on a survey of more than 500 CEOs globally whose companies generate over $500 million in annual revenue. Among the 104 U.S.-based CEOs included in the analysis, the remainder reported that 21% to 40% of revenue would be jeopardized under the same two-week supplier disruption scenario.
Willingness to Pay for Resilience
CEOs demonstrated strong financial commitment to mitigating supply chain risk: the 104 U.S.-based CEOs surveyed indicated they would accept an average cost increase of 17% on third-party supplier expenses to guarantee resilience. 70% said they would accept an increase of 11% or more. When asked how they would fund those increases, 38% cited implementing internal cost-saving measures, 36% planned to pass price hikes on to customers, and 27% said they would absorb the costs through reduced margins.
Top Threats and Underestimated Risks
Conflict and geopolitical tensions ranked as the greatest financial threat to supply chains for 30% of U.S. CEOs—the highest share across all markets surveyed. Emerging technologies and sustainability targets/regulatory requirements each received 20% of responses as top threats. Notably, U.S. CEOs believe their peers most underestimate those same two risks: 25% cited emerging technologies and 25% cited sustainability targets and regulatory requirements as the most overlooked challenges.
Cybersecurity Gaps Persist
Cybersecurity remains acute: 47% of U.S. CEOs confirmed their business had experienced a supply chain disruption caused by a cyber incident in the past 24 months. Meanwhile, 37% agreed that significant business revenue would be at risk if a key supplier suffered a cyberattack. Yet fewer than 39% reported having conducted a full cyber resilience stress-test across critical suppliers in the past year—and only 41% said they believe their organization has real-time visibility into the cyber risk exposure of those suppliers.
Executive Perspective on Strategic Imperative
Simon Geale, executive vice president at Proxima, emphasized urgency in response to the findings.
“We are seeing first-hand how U.S. businesses are being impacted by geopolitical uncertainty, with the ongoing conflict in Iran and President Trump’s tariffs regime leaving many CEOs feeling exposed. Amid this backdrop, businesses cannot afford to lose focus on supply chain resilience, and it is no surprise that many are willing to pay more to reduce their risk.” — Simon Geale, Executive Vice President, Proxima
He added that, in an increasingly litigious society, boards must recognize resilience as non-negotiable—not just operationally, but legally—given potential shareholder challenges against unprepared leadership.
Source: thescxchange.com
Compiled from international media by the SCI.AI editorial team.
