Australian businesses face the highest supply chain vulnerability among major economies, with only 5% able to sustain operations between 4-6 months during a major supply chain shock according to new research by procurement and supply chain consultancy Proxima.

Just over half (51%) of global CEOs surveyed say their businesses are unable to maintain day-to-day operations for over three weeks should a major supply chain shock occur tomorrow. Australia, however, faces the greatest vulnerability the lowest among all markets surveyed.

More concerning, 21% of Australian businesses can only survive disruption for 1-2 weeks, and 59% would fail within three weeks.

The findings come from Proxima’s 2026 Global Supply Chain Resilience Outlook, based on a survey of 515 CEOs from businesses generating over $500m in revenue across the UK, US, Australia, Singapore and Germany.

Australia’s vulnerability and opportunity

“Australian businesses face a unique vulnerability due to geographic isolation and extended lead times,” says Lara Mujico, Senior Vice President at Proxima Australia.

“A supply chain shock that other markets might weather for longer creates a crisis for Australian operations within weeks. But we’re seeing something positive in that businesses are responding with strategic discipline. They’re investing in resilience, building local relationships, and reconsidering concentration risk.”

Despite facing the tightest timelines for supply chain recovery, Australian CEOs are taking a disciplined approach to resilience investment. Rather than passing costs to customers, 47% of Australian businesses would fund supply chain resilience through cost-saving measures, the highest proportion among all countries surveyed.

Only 34% would pass costs to consumers, and just under one in five (19%) would accept reduced margin.

The survey also found that uncertainty around global supply chains is driving increased demand for local and regional sourcing in Australia with 51% saying protectionist policies increased domestic demand for their products.

“Australian businesses are actively reconsidering geographic concentration, nearshoring to Asia-Pacific, and building supplier relationships in markets with shorter lead times,” says Ms Mujico.

“This shift reflects a strategic realisation that resilience requires proximity.”