Unbeknownst to many, manufacturing firms actually face an unprecedented level of cyber threats. While cyber security is often associated with industries such as finance, healthcare and IT, manufacturing firms are increasingly becoming a prime target for cyberattacks.

Despite this growing risk, many manufacturers still underestimate the importance of cyber security or see it as a secondary concern. However, the consequences of neglecting cyber security can be devastating, leading to operational disruptions, financial losses, intellectual property theft, and even safety risks.

Here's why manufacturing firms should consider their cyber security strategy as a vital part of their business operations.

The rise of cyber threats in manufacturing

The integration of digital technologies, such as the Internet of Things (IoT), industrial control systems (ICS), and automation, has revolutionised the manufacturing industry. However, with this digital transformation comes increased vulnerability to cyberattacks.

According to a 2022 report by IBM, the manufacturing industry became the most targeted sector for cyberattacks, surpassing sectors like finance and healthcare.

Hackers are attracted to the manufacturing sector for several reasons:

• Valuable intellectual property: Trade secrets, designs, and proprietary processes are valuable to competitors or malicious entities.

• Operational disruption: Attacks on critical systems can halt production, causing massive financial losses.

• Extortion: Ransomware can cripple manufacturing plants, forcing companies to pay large sums to restore their operations.

  
  

Operational downtime and financial losses

In manufacturing, time is money. A cyberattack that disrupts production processes can lead to significant downtime, costing the company millions.

For example, if a manufacturer’s network or equipment is compromised, it can halt the assembly line, delay product delivery, and negatively impact supply chain operations. The longer the disruption, the greater the loss.

Ransomware attacks, in particular, have become a serious threat. In such attacks, cybercriminals encrypt a company's data and demand payment to release it. Even if the ransom is paid, there's no guarantee that all systems will be restored immediately or that the data will remain intact.

A survey from the National Association of Manufacturers found that more than 90% of manufacturers reported some level of cyber-related disruption. These disruptions can have a cascading effect across the business ecosystem, affecting customers, partners, and suppliers alike.

Intellectual property theft and Competitor Espionage

Manufacturing firms often handle sensitive information, including blueprints, proprietary processes, and research and development data. Hackers can steal this intellectual property (IP) and sell it to competitors, leading to a loss of competitive advantage. Competitor espionage can also come in the form of cyberattacks aimed at uncovering a company's trade secrets or undermining product quality.

For example, a sophisticated hacker group might infiltrate a firm’s network to steal the designs of a new product before its launch, giving competitors an unfair advantage. Protecting IP is essential not only for maintaining market leadership but also for ensuring long-term business growth.

The growing complexity of supply chain cyber security

The modern manufacturing ecosystem is highly interconnected, with companies relying on a vast network of suppliers and partners for parts, materials, and services. A cyberattack on one supplier can have a domino effect, potentially disrupting an entire supply chain.

In addition, many manufacturers are now connected to global networks through industrial IoT devices and sensors. These devices often have vulnerabilities that can be exploited by hackers, allowing them to gain access to critical systems.

As more supply chain operations become digital, it becomes increasingly important for manufacturers to secure not only their own networks but also those of their partners and suppliers.

Compliance and regulatory requirements

Many manufacturing firms operate in sectors with strict regulatory requirements for data protection and cybersecurity, such as automotive, aerospace, and defence. These sectors must comply with standards like ISO 27001 or the NIST Cybersecurity Framework to ensure that sensitive data is protected from cyber threats.

Failure to comply with cybersecurity regulations can lead to fines, lawsuits, and reputational damage. Moreover, companies that fail to meet security standards may lose business opportunities, as more clients demand stringent cybersecurity practices from their suppliers.

Safety risks and threats to physical infrastructure

In the manufacturing world, cyber security is not just about protecting data; it’s also about protecting physical infrastructure and human lives. Many manufacturing plants use industrial control systems (ICS) to manage machinery, robotics, and production lines. These systems are often linked to operational technology (OT) networks, which control physical processes like temperature, pressure, and movement.

A cyberattack on ICS or OT systems can have dangerous consequences, such as machinery malfunctions, chemical spills, or even explosions. In some cases, cybercriminals may deliberately target these systems to cause physical harm or put workers at risk. Ensuring the cyber security of these systems is critical for safeguarding both the workforce and the surrounding environment.

Brand reputation and customer trust

A cyberattack on a manufacturing firm can erode customer trust and damage brand reputation. In today's transparent digital landscape, news of a breach spreads quickly, and customers expect manufacturers to take responsibility for protecting their data and ensuring the security of their products.

Manufacturers who fail to protect their systems and data risk losing the confidence of customers, partners, and stakeholders. Rebuilding that trust can be costly and time-consuming.

Furthermore, damaged reputations can lead to lost sales, reduced market share, and long-term business impact.

Future-proofing with cyber security investments

Cyber security is not just a defensive measure - it's also an investment in the future. As manufacturing firms continue to adopt advanced technologies like artificial intelligence, big data analytics, and 5G, their exposure to cyber risks will increase.

Companies that take proactive steps to build robust cyber security measures now will be better positioned to capitalise on the opportunities of Industry 4.0 while mitigating risks.

This involves:

• Regularly updating software and hardware systems.

• Implementing strong encryption and authentication protocols.

• Conducting regular cybersecurity audits and vulnerability assessments.

• Training employees on cybersecurity best practices.

• Collaborating with cybersecurity experts to build a secure infrastructure.

  
  

Conclusion

Manufacturing firms can no longer afford to view cyber security as a back-office concern. As cyber threats continue to evolve and become more sophisticated, manufacturers must prioritise cyber security to protect their operations, intellectual property, and reputation. By taking proactive measures, manufacturers can ensure business continuity, stay competitive, and thrive in the digital age.

In the race toward digital transformation, cyber security is not a hurdle - it's a safeguard for long-term success.

By ensuring your manufacturing firm integrates a strong cyber security framework, you can protect the future of your operations, employees, and customers from the ever-growing digital risks of the modern world.

Reporting

Report all Fraud and Cybercrime to Action Fraud by calling 0300 123 2040 or online. Forward suspicious emails to report@phishing.gov.uk. Report SMS scams by forwarding the original message to 7726 (spells SPAM on the keypad).