Manufacturers on High Alert: Cybersecurity Incidents Driving Managed Services Adoption

Ryan Spurr

Over the years, the acceleration towards automation, artificial intelligence, and interconnected systems has transformed manufacturing into a powerhouse of efficiency. This digital revolution comes with a cost: an amplified threat landscape. But let’s not blame it all on new technology, as operational environments have long been fraught with a lack of good cybersecurity hygiene and best practices, unpatched or at-risk equipment, long device life cycles, and a disparate approach to infrastructure and integration with the corporation’s balance. Unfortunately, our days of manufacturers ignoring this problem are over, as manufacturing has become the #1 most attacked industry globally for three years, and 61% of successful cybersecurity incidents occur in operational technology environments.

Let’s explore the top cybersecurity risks that can cripple your manufacturing operations:

  • Phishing Attacks: These deceptive emails or messages exploit human error to trick employees into revealing sensitive information or clicking malicious links. Manufacturing facilities, with potentially less tech-savvy workforces, can be prime targets.
  • Ransomware: Ransomware makes up 17% of all manufacturing cybersecurity incidents. This malware encrypts critical data, holding it hostage until a ransom is paid. Manufacturing relies heavily on real-time data for production. Downtime caused by ransomware attacks can be devastatingly expensive.
  • Supply Chain Attacks: Hackers can infiltrate a less secure vendor within your supply chain to gain access to your own systems. This highlights the importance of robust security standards across the entire network. An example that has been on the rise in third-party remote access, which has seen 57% of manufacturers suffer a third-party related breach, where trusted partners in your supply chain access your business systems or directly into operational technology environments to maintain or upgrade equipment remotely.
  • Insider Threats: Disgruntled employees or those with compromised credentials can inflict serious damage, from stealing intellectual property to sabotaging critical equipment.
  • IoT Security Risks: The increasing use of Internet-connected devices (IoT) on the factory floor opens new avenues for attacks. Legacy systems may not have adequate security measures to protect against these vulnerabilities, leaving OT networks wide open to horizontal sprawl of cyberattacks regardless of initial entry vector.

Consequences Are Rising in Significance

A successful cyberattack on a manufacturer can have a devastating domino effect. Production lines can grind to a halt due to ransomware attacks, causing significant financial losses and delays. Stolen intellectual property, like product designs or proprietary processes, can be sold to competitors, eroding a company’s competitive edge. Additionally, data breaches can expose sensitive customer information, leading to reputational damage and regulatory fines.

The consequences of these breaches are far-reaching:

  • Production Disruptions: Downtime due to ransomware attacks or compromised systems can cripple production lines and lead to significant financial losses.
  • Financial Damages: Ransom demands, data recovery costs, and lost sales can create a significant financial burden.
  • Reputational Harm: A data breach can erode customer trust and damage your brand reputation. In the past, this was often hidden from clients or shareholders because the decision to report was left to the business. With changes to US regulatory requirements, public manufacturers are mandated to report material cybersecurity events. These include those that have experienced drops in operational delivery, reduced sales, brand impact, and significant share price reductions.
  • Cybersecurity Insurance Challenges: In a Connection Manufacturing Survey, 57% reported experiencing higher cybersecurity insurance premiums, limited availability, and/or denial of insurance due to their current security posture. A staggering 18% were dropped entirely and bear the full financial burden of future cybersecurity incidents.

Navigating these risks presents a unique challenge for IT and OT (Operational Technology) teams in manufacturing. Here’s why:

  • Cybersecurity Workforce Shortage: The demand for skilled cybersecurity professionals outpaces the supply, making it difficult for manufacturers to build strong in-house teams, keep up with the latest threats, and maximize the benefits of invested tools to achieve the best possible security posture.
  • Heterogeneous OT Environments: Manufacturing facilities often have a mix of old and new systems, making it difficult to implement a comprehensive security strategy. Legacy systems may not be easily patched or upgraded.
  • Limited Cybersecurity Budgets: Balancing security needs with tight budgets can force manufacturers to make difficult choices, leaving them vulnerable.

Partnering for Protection: Why Managed Security Services Are Essential

Given these challenges, it’s no wonder that many manufacturers are turning to managed security services (MSS) providers. Partnering with a managed security services provider (MSSP) in this complex cybersecurity ecosystem can offer a range of services, including visibility and risk planning, threat detection and monitoring, incident response, staff augmentation, and security awareness training.

This allows manufacturers to:

Bridge the Talent Gap: MSSPs offer access to a pool of cybersecurity experts who can augment internal teams and provide specialized skills.

Compliance Services: Managed Cybersecurity and Compliance services are helping manufacturers improve cybersecurity maturity, identify gaps, prove controls, and maintain industry or regulatory compliance.

  • Simplify Security Management: MSSPs can provide a unified security platform to manage diverse OT environments, streamline security operations, and integrate OT and IT cybersecurity in a single “pane of glass”.
  • Optimize Security Spend: By leveraging the expertise and resources of an MSSP, manufacturers can achieve better security outcomes without exceeding their budgets.

Don’t let cybersecurity cripple your operations. Explore how partnering with a managed security services provider can help your manufacturing business stay secure and competitive. Learn more about how managed services from Connection can help to identify IT and OT asset and infrastructure risks, improve cybersecurity posture, reduce operational costs, and maintain industry compliance.

Ryan Spurr is the Director of Manufacturing Strategy at Connection with 20+ years of experience in manufacturing, information technology, and portfolio leadership. He leads the Connection Manufacturing Practice, go-to-market strategy, client engagement, and advisory services focusing on operational technology (OT) and information technology that make manufacturers more digitally excellent.

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