---
title: The State of Aerospace & Defense | RapidRatings
description: RapidRatings conducted a stress test on the Aerospace & Defense supply chain modeling a rapid defense production ramp scenario against...
image: https://info.rapidratings.com/hubfs/Landing%20Page%20Images/Preview%20Images/A%26D%20Whitepaper%20Preview%202026.jpg
---

[![RapidRatings](https://info.rapidratings.com/hubfs/Rapid%20Ratings/images/Rapid%20Rating%20logo.png)](https://www.rapidratings.com/)

RapidRatings Whitepaper

# The State of Aerospace & Defense Supply Chains

RapidRatings conducted a stress test on the Aerospace & Defense supply chain modeling a rapid defense production ramp scenario against a simultaneous cost inflation shock - 3% across COGS, staff, and operating expenses, with costs scaling faster than revenue. The scenario reflects two concurrent pressures: a demand-side surge driven by accelerated defense spending, and a cost-side shock driven by a major Middle East conflict causing uncertainty for critical shipping in the Strait of Hormuz and triggering broader energy market volatility.

#### What's Inside:

- Overall High and Very High Risk rises from 17.6% to 20.3% post-stress — a net +2.7 percentage point deterioration across the 4,309-company universe.
- Privates are significantly more stressed than publics, with HR+VHR increasing from 22.1% to 26.7% (+4.6%), versus publics moving from 15.9% to 17.9% (+2.0%).
- Energy-intensive and materials-dependent sectors bear the heaviest stress: Petroleum & Coal (+21.9%), Iron & Steel (+26.1%), and Nonresidential Construction (+30.8%) show catastrophic HR+VHR escalation.
- The Aerospace sector (the largest tracked) shows meaningful deterioration (+6.1%), making it a priority focus for ongoing supplier health monitoring.

[Download the full report (PDF)](https://info.rapidratings.com/hubfs/Documents%20and%20Collateral/PDFs/Whitepapers%20and%20Reports/RR%20Whitepaper_Aerospace%20and%20Defense%20whitepaper%202026.pdf?hsLang=en)

Click report to enlarge

[![A&D Whitepaper Preview 2026](https://info.rapidratings.com/hubfs/Landing%20Page%20Images/Preview%20Images/A%26D%20Whitepaper%20Preview%202026.jpg "A&D Whitepaper Preview 2026")](https://info.rapidratings.com/hubfs/Documents%20and%20Collateral/PDFs/Whitepapers%20and%20Reports/RR%20Whitepaper_Aerospace%20and%20Defense%20whitepaper%202026.pdf?hsLang=en)

Copyright © 2026 Rapid Ratings International, Inc. All Rights Reserved.