Manufacturing operations have undergone dramatic changes over the past several decades. Today, with widespread network connectivity and the rise of smart factories, protecting intellectual property and production systems is just as crucial as producing high-quality products and building a strong brand. For those interested in factory security measures, please see our guide, How to Advance Factory Security Measures and Key Points.

With the evolution of IIoT (Industrial Internet of Things), OT (Operational Technology) systems, and global supply chain integration, cyber threats have become increasingly sophisticated. At the same time, customer and partner expectations continue to rise. They demand efficient and stable production and supply systems while expecting uncompromising data protection and system security.

This article explores why cybersecurity for manufacturing is indispensable, how threats have evolved, and the most effective strategies to protect modern manufacturing companies. For a deeper discussion on related topics, please also refer to our Best Practices for Data Protection in Manufacturing.

Why Cybersecurity Is Essential in Modern Manufacturing

Digital transformation (DX) in manufacturing has rapidly advanced worldwide, with smart factories and IIoT adoption expanding globally. While these innovations improve production efficiency and quality, they also increase the connectivity between IT and OT systems and the number of networked devices, expanding the attack surface for cyber threats.

Many North American manufacturers are investing heavily in DX, and network connectivity is expected to increase further. The interconnected environment, along with sensitive data such as design files, manufacturing processes, customer information, and operational data, presents attractive targets for attackers. Hackers use ransomware, targeted attacks (APTs), industrial espionage, and supply chain attacks to infiltrate IT networks and OT systems, aiming to steal information or disrupt production.

Security breaches can have far-reaching consequences beyond data leaks, including production line shutdowns, reduced product quality, supply chain disruptions, threats to employee safety, and environmental impacts. As DX and smart manufacturing continue to advance, exposure to cyber threats is unavoidable, making strong cybersecurity for manufacturing more critical than ever.

Supply Chain Security Risks Threaten Trust and Partnerships

Cybersecurity in the manufacturing industry is vital not only for business continuity but also for maintaining overall corporate trust. Customers and suppliers want assurance that confidential information (contracts, specifications, purchase orders) and product safety and quality will not be compromised by cyberattacks.
Manufacturers face significant financial and reputational risks if they fail to protect critical information, production systems, and product integrity. Cybersecurity for manufacturing is no longer just an IT issue—it is a foundational element of modern manufacturing and supply chains.

Customers expect stable parts supply and product quality. Convenience and efficiency alone are insufficient; concerns about data breaches, production stoppages, or malware contamination can severely damage trust. Data breaches or production incidents can erode confidence in products and the company, causing long-standing clients and potential new customers to seek safer, more reliable suppliers.

Even a single major publicized attack can spread concern throughout the industry. Small breaches can also cause reputational damage that spreads unexpectedly. Since corporate reputation depends heavily on reliability and stable supply, regaining lost trust can be costly and time-consuming.

Example: Kojima Press Industries, a major supplier for Toyota, was hit by a ransomware attack, causing all 14 domestic factories to temporarily halt production and impacting the production of 13,000 vehicles. While recovery was swift, this incident highlighted how cybersecurity events can disrupt the supply chain.

The Financial and Legal Fallout of Poor Cybersecurity

Inadequate cybersecurity assessment for a manufacturing company brings severe financial and legal risks.

Financial losses include:

• Lost profits from production halts
• Forensic and system recovery costs
• Damages from leaked proprietary data
• Compensation for affected customers

These costs can escalate further with regulatory fines related to GDPR, CCPA, or industry-specific safety standards. Legal consequences may include lawsuits or partner claims leading to costly settlements.
Example: The 2019 ransomware attack on Norsk Hydro led to nearly $71 million in damages and disrupted global production—demonstrating the critical need for robust OT security in the manufacturing sector.

The Expanding Attack Surface in Manufacturing

Previously, security threats involved the physical theft of blueprints or factory access. But the introduction of internet-connected IT systems and the convergence of IT/OT environments created new vulnerabilities. Now, manufacturers must manage risks from software flaws, OT protocol exploits, and ransomware attacks.

Globalization Amplifies Risk

As manufacturing becomes more globalized, parts are sourced worldwide, and operations span multiple countries. While this improves scalability, it also attracts sophisticated attackers from regions with weaker law enforcement. APT (Advanced Persistent Threat) groups—sometimes state-sponsored—pose significant risks.

For more insights, read our blog on 7 Key Supply Chain Security Best Practices.

Key Vulnerabilities in Manufacturing Environments

OT and ICS Systems: A Prime Target

OT (Operational Technology) and ICS (Industrial Control Systems) like PLC, SCADA, and DCS, are critical to plant operations but vulnerable due to minimal downtime allowances for security updates. Malicious access can cause widespread disruptions or hazardous conditions.

Attack vectors include:

• Unsafe IT-OT integration
• Insecure use of USB drives or mobile devices
• Lack of visibility into OT assets

In 2020, Honda was hit by Snake/EKANS malware, targeting ICS processes. The ransomware disrupted internal factory servers and hinted at a deliberate OT-focused attack.

IT Systems (MES, ERP, PLM): Securing the Digital Backbone

IT systems such as Manufacturing Execution Systems (MES), Enterprise Resource Planning (ERP), and Product Lifecycle Management (PLM) store:

• Sensitive design data (CAD drawings)
• Quality and inventory records
• Production schedules and proprietary know-how

Weak access controls or outdated security patches can lead to data theft or manipulation. Remote access for vendors or remote employees introduces further risks, especially if VPNs and authentication processes are not robust.

Security Breaches: Real-World Impacts and Takeaways 

Manufacturing remains a top target for ransomware and espionage. IBM’s 2023 report ranked manufacturing fifth for highest average breach costs ($4.73 million).

Common Breach Methods Include:

• Phishing and social engineering
• Vulnerability exploits
• Credential theft
• Supply chain compromise
  

While high-profile cases like Norsk Hydro make headlines, many small and mid-size manufacturers suffer damaging breaches that go unreported. From intellectual property loss to factory shutdowns, the consequences of a cyberattack are wide-ranging.

Lessons Learned in Cybersecurity for Manufacturing

High-profile cyberattacks on manufacturers like Toyota, Norsk Hydro, and Honda expose clear patterns: hackers often take advantage of unpatched systems, weak network segmentation between IT and OT environments, poor authentication practices, and a lack of employee security training.

The root causes? Ongoing use of outdated systems, low prioritization of cybersecurity, and unique OT challenges—like minimal tolerance for downtime—that delay critical updates.

Consequences are severe: major financial losses, halted production, lawsuits, reputational damage, and in some cases, even environmental or safety hazards.

Proactive Cybersecurity for Manufacturing’s Future

Waiting for a cyber incident is no longer an option. Today’s manufacturing industry must embrace proactive cybersecurity strategies that strengthen people, technology, and processes. A layered defense approach is the best way to minimize risk, detect threats early, and respond fast. An integrated plan that protects both IT and OT environments is essential.

Boost Employee Cyber Awareness

Phishing is still a top attack method. In modern factories, employees receiving deceptive emails may unintentionally click harmful links or share login credentials, giving attackers an easy way into IT networks, and eventually OT systems.

Key employee-focused tactics:

• Regular cyber awareness training for all staff, including factory floor teams, engineers, and maintenance crews.
• Phishing simulations and practical OT security tips.
• Access to ongoing cybersecurity resources.

Creating a strong security culture helps lower the chances of human error and social engineering attacks.
Explore our guide: “Build a Human Firewall.”

Implement Strong Technical Defenses

The Zero Trust security model is now critical for the manufacturing industry’s cyber resilience. It treats every user, device, and connection as a potential risk—requiring strict verification and constant monitoring.

Top technical defenses include:

• Multi-factor authentication (MFA): Essential for VPNs, ERP, MES, HMI, and remote access.
• Encryption: Protect sensitive data at rest and in transit.
• IT/OT segmentation: Prevent attackers from moving laterally across networks.
• OT-specific protections: Firewalls, intrusion detection (ICS-IDS/IPS), endpoint security for legacy systems, and secure removable media handling.

For more insights, check out our article, “Ransomware and Remote Work: Evolving Threats and Solutions.”

Strengthen Security Assessments

Ongoing cybersecurity assessments for manufacturing companies are crucial. These assessments help detect vulnerabilities and measure compliance with industry frameworks like NIST CSF and IEC 62443.

What to include in your assessments:

• Patch management status
• System misconfigurations
• Legacy software risks
• Recovery workflows aligned with business continuity
• Supply chain risk management and SBOM usage 
  

Support Production Efficiency Without Sacrificing Security

Security must enable—not hinder—operations. In sectors like cybersecurity for food & beverage manufacturing, seamless production is non-negotiable. Security systems should be automated, non-intrusive, and risk-based.

Best practices include:

• Automating access controls and anomaly alerts.
• Embedding checks into workflows without slowing teams down.
• Adjusting controls based on asset or process criticality.
• Communicating your security strategy clearly to employees, customers, and vendors.
  

Transparency builds credibility. Statements like “We follow IEC 62443-compliant security protocols” reassure your partners.

From Quick Wins to Long-Term Growth

Don’t get overwhelmed. Building robust cybersecurity for manufacturing is a journey. Start with low-effort, high-impact actions, then scale up.

Short-Term Checklist:

• Map your IT/OT assets and networks.
• Patch known vulnerabilities—carefully managing OT environments.
• Remove unused accounts and enforce password policies.
• Conduct phishing awareness training.
  Lock down external connections (USBs, remote access).
• Back up critical data—use offline or immutable formats.
• Minimize IT/OT interconnections to reduce exposure.
  

Start here: “Basic Security Measures Checklist.”

Long-Term Goals:

• Schedule annual or biannual cybersecurity assessments for your manufacturing company.
• Build an integrated IT/OT security roadmap with executive buy-in.
• Partner with MSSPs or internal teams to monitor and respond 24/7.
• Invest in advanced tools: EDR/XDR, OT visibility platforms, SOAR, and threat intel.
• Gradually move to Zero Trust architecture.
• Audit your suppliers and demand strong security from them.
• Run drills to refine your incident response and recovery playbooks.
  

Tie these goals to business outcomes to win leadership support, like integrating security into smart factory plans or vendor onboarding. Regular progress reports (e.g., “MFA now covers 95% of systems”) show ROI and maintain momentum.

Turn Cybersecurity into a Competitive Edge

Solid cybersecurity for manufacturing isn’t just protection—it’s a market advantage. It signals product safety, business continuity, and trustworthiness to your customers and partners.

Clearly communicate your security practices:

• "We’re compliant with IEC 62443."
• "Customer data and IP are fully encrypted."
• "We require third-party audits for all key suppliers."
  

Publicizing these efforts—in brochures, on your website, or during sales meetings—positions your company as reliable, stable, and secure.

Conclusion: Embrace Cybersecurity as a Growth Enabler

Cybersecurity in manufacturing is no longer optional—it’s a core business requirement. By taking proactive steps, companies not only prevent downtime and data breaches, but also strengthen customer confidence, secure their supply chain, and unlock long-term growth. When you treat cybersecurity as a strategic investment—not a burden—you build a resilient, future-ready operation.