Strengthening cybersecurity in manufacturing

Gerry Pitt David Zey

March 10, 2025

Cybersecurity in the manufacturing industry involves protecting computer systems, networks and data from cyber threats to ensure the integrity, confidentiality and availability of critical information.

This is crucial as manufacturing operations increasingly rely on interconnected systems, digital technologies and automation that has replaced highly manual processes.

Common cyber threats faced by manufacturers include:

• Ransomware – which can lock down essential systems and demand payment for restoration
• Industrial espionage – where sensitive data and intellectual property are stolen

The impact of cyberattacks on manufacturing operations can be severe – potentially leading to production downtime, financial losses, compromised product quality and disrupted supply chains.

These attacks can impact customer trust, damage reputations and result in significant recovery costs, highlighting the need to strengthen cybersecurity measures in the manufacturing sector.

SMB targeting in manufacturing

Small- and medium-sized businesses (SMBs) in the manufacturing sector are increasingly targeted by cyberattacks.

In its recent Growth Opportunities in Manufacturing report, the Wisconsin Center for Manufacturing and Productivity (WCMP) shared that in 2023:

• 22% of manufacturers reported being hacked – a 38% increase over 2021
• 17% of manufacturers with fewer than 50 employees faced data breaches – a 13% increase over 2021

These businesses are often seen as easy targets due to their perceived weaker defenses and valuable intellectual property, such as proprietary designs and trade secrets.

Common attacks on SMBs include:

• Phishing – where attackers trick employees into revealing sensitive information
• Ransomware – which locks down critical systems until a ransom is paid

These attacks can lead to significant financial losses, operational disruptions and damage to the company’s reputation.

Lack of IT resources in SMBs

SMBs in the manufacturing sector can face significant challenges in implementing robust cybersecurity measures.

Limited budgets often restrict their ability to invest in advanced security technologies and hire specialized cybersecurity personnel, leaving them with only basic internal resources and controls to maintain security standards.

Many companies also struggle with outdated technology, which can make them more vulnerable to cyberattacks.

Additionally, employees often need to focus on multiple responsibilities, which can leave little time to dedicate to cybersecurity efforts.

These resource constraints make it difficult to establish comprehensive security protocols and maintain up-to-date defenses.

As a result, they can become attractive targets for cybercriminals who perceive them as easier to breach.

The lack of adequate cybersecurity measures can increase the risk of successful attacks.

Reliance on consistent practices

Consistent cybersecurity practices among smaller teams are crucial for protecting manufacturing companies from cyber threats.

Training and awareness programs play a vital role in ensuring all employees understand and follow best practices, such as recognizing phishing attempts, using strong passwords and regularly updating software.

Effective cybersecurity practices include implementing multi-factor authentication, conducting regular security audits and establishing clear protocols for reporting suspicious activities.

These measures can help promote a security-conscious culture within the organization, providing attainable and consistent successes while minimizing the risk of human error. 

However, the rise of advanced threats – such as AI-driven attacks – pose significant challenges. 

These sophisticated threats can exploit even minor lapses in security – reinforcing the need for ongoing education.

The rise of AI in cyberattacks

Artificial intelligence (AI) is increasingly being leveraged by cybercriminals to launch more sophisticated and automated attacks that can be scaled up in frequency, making SMBs an easier target.

AI enables attackers to automate tasks – such as vulnerability scanning, data gathering and even the execution of attacks – making them faster and more efficient.

For instance, AI-powered phishing attacks use machine learning to craft highly personalized and convincing emails that trick recipients into revealing sensitive information.

Automated vulnerability-scanning tools can rapidly identify and exploit security flaws in networks and applications, allowing cybercriminals to launch attacks at an unprecedented scale and speed.

These AI-driven threats pose significant challenges to traditional cybersecurity measures and amplify the need to consider the adoption of more advanced AI-based defenses to stay ahead of malicious actors.

Security of moving to cloud services

Cloud services can offer significant benefits for SMBs in manufacturing, including scalability and cost-effectiveness.

By leveraging cloud solutions, these companies can easily scale their IT resources up or down based on demand, avoiding the need for substantial upfront investments in hardware. Additionally, cloud services often operate on a pay-as-you-go model, which can help SMBs manage their IT budgets more efficiently.

However, security considerations are crucial when moving to cloud services.

Ensuring data encryption both in transit and at rest, implementing robust access controls and regularly monitoring for security breaches are essential practices.

Best practices for securing cloud-based systems include using multi-factor authentication, conducting regular security audits and choosing reputable cloud service providers with strong security track records.

Internet service redundancy is also required for cloud services to ensure connectivity.

New secondary technologies – such as Starlink – offer reliable service that includes rural and northern regions of the state.

By following these guidelines, SMBs can enjoy the benefits of cloud services while maintaining a secure IT environment.

Incident response plans

Having a practical and scalable incident response plan is crucial for SMBs in the manufacturing sector to effectively manage and mitigate the impact of cyberattacks.

An incident response plan outlines the procedures to follow in the event of a cybersecurity breach, ensuring a swift and organized response to minimize damage.

Key steps to create an effective incident response plan include:

• Identifying potential threats and vulnerabilities
• Establishing a response team with clearly defined roles and responsibilities
• Developing communication protocols for internal and external stakeholders

The response team should include your cyber insurance carrier along with their legal and forensics representatives and contacts from each of your vendors that are identified as critical to business continuity.

The plan should also include procedures for detecting and analyzing incidents, containing and eradicating threats and recovering affected systems.

Regularly testing and updating the incident response plan is essential to ensure its effectiveness.

By having a practical and well-practiced incident response plan, companies can reduce downtime, protect their assets and maintain customer trust in the aftermath of a cyberattack.

Use of fractional IT services

Fractional IT services offer SMBs in manufacturing access to specialized IT expertise on a part-time or as-needed basis, providing a potential cost-effective alternative to hiring full-time staff.

These services allow businesses to tap into the knowledge of experienced IT professionals without the financial burden of a full-time salary.

For example, businesses can leverage fractional IT for cybersecurity by engaging experts to conduct security assessments, implement advanced security measures and provide ongoing monitoring and support.

Strategies for reducing IT and cybersecurity costs without compromising security include optimizing existing resources, utilizing open-source tools and implementing no-cost or low-cost solutions – such as regular employee training and basic security practices, like strong password policies and multi-factor authentication.

By adopting these approaches, companies can enhance their cybersecurity posture while managing their IT budgets effectively and building accountability while gaining the benefits of involving a neutral party to the organization.

Proactive cybersecurity measures

Proactive cybersecurity measures are crucial for protecting manufacturing companies from the ever-evolving landscape of cyber threats.

Gone are the days of a company being too small to be attacked.

By staying ahead of potential attacks, businesses can safeguard their operations, intellectual property and customer trust.

Cybersecurity assessments help identify vulnerabilities, ensure compliance and prioritize risk. 

Investing in AI tools for real-time threat detection, leveraging fractional IT services for specialized expertise, adopting secure cloud solutions and creating an incident response plan are all effective strategies for enhancing cybersecurity without overwhelming budgets.

These investments not only strengthen defenses but also ensure that SMBs in manufacturing remain resilient in the face of sophisticated cyberattacks.

Staying vigilant, continuously updating security practices and fostering a culture of cybersecurity awareness are essential for navigating the digital age securely and successfully.

A small investment in prevention can save millions in potential cryptocurrency ransom payments.