NEW YORK, Feb. 13, 2025 /PRNewswire-PRWeb/ -- RapidRatings, the leading provider of financial health analytics, has released the results of its 2025 Annual Risk Survey, which found that nearly 7 in 10 (68%) supply chain professionals expect supply chain risks to escalate in 2025. With geopolitical instability, economic turbulence, and tariffs threatening global commerce, the findings of the report indicate that the supply chain crisis which emerged in the aftermath of COVID has only worsened. More than 4 out of 5 (81%) respondents have had their business impacted by supplier disruptions in the past two years.
"Today's supply chain landscape is more volatile than ever," said John D'Aleo, RapidRatings CEO. "Risks are evolving at an unprecedented pace, which is why we went straight to the frontlines—supply chain professionals—to quantify the cost and frequency of disruption. Our survey results provide industry leaders with critical insights into supply chain risks and serve as a foundation for building a robust mitigation strategy in 2025."
RapidRatings surveyed more than 100 senior, highly experienced supply chain professionals, including VPs, Directors and C-Suite leadership individuals in supply chain, procurement, and third-party risk management to assess their biggest supply chain risks and impact of supplier disruption. The survey was conducted between December 15, 2024 to January 15, 2025 and includes respondents from North America, EMEA, APAC, and LATAM regions. The majority of respondents (72%) work at organizations with more than 5,000 employees.
Key findings:
- 62% of respondents perceive global supply chain risks as "high" or "very high," with 68% expecting further escalation in 2025.
- 81% of respondents have had their business impacted by supplier disruption in the past two years.
- With almost 30% of disruptions costing organizations over $5 million each, the stakes are higher than ever.
Regional and Sector-Specific Risks:
- APAC, particularly China, was identified as the highest-risk region, cited by 54.5% of respondents.
- Top at-risk industries include computer and electronic product manufacturing, electrical equipment, and fabricated metal product manufacturing.
- Automotive, aerospace and defense, pharma, healthcare, and financial services sectors remain highly vulnerable to supply disruptions.
Cost and Frequency of Disruption:
- 55% of respondents experienced supplier disruptions in the past six months alone.
- 39% reported an increase in disruption frequency in 2024, and 68% expect a significant escalation in disruption in 2025.
- 30% of supplier disruptions cost organizations more than $5 million each; and 16% of disruptions cost businesses more than $10 million per event.
- Operational costs, revenue targets, and productivity are among the hardest-hit areas, with reputational damage and inventory management also significantly affected.
"As supply chain risks intensify, businesses must shift from reactive to predictive strategies," added D'Aleo. "Financial transparency and risk mitigation are no longer optional; they are essential to survival and growth."
Access RapidRatings' Annual Risk Survey 2025 Whitepaper for deeper data pertaining to the survey and strategies for mitigating disruption in the year ahead.
About RapidRatings:
RapidRatings sets the standard for financial health transparency between business partners, transforming the way leading companies manage enterprise and financial risk. The company provides the most sophisticated analysis of the financial health of public and private companies in over 140 countries worldwide. Through RapidRatings, businesses can build more meaningful relationships and gain visibility into the financial stability of global suppliers, vendors, and other third parties. Learn more at www.rapidratings.com.
