A Omdia study revealed a striking increase in cyber attacks targeting the manufacturing sector, with 80% of firms reporting a significant rise in security incidents last year. Alarmingly, only 45% of these companies feel adequately prepared to combat these escalating threats.
The study, conducted in partnership with Telstra International, surveyed over 500 technology executives worldwide about the convergence of Information Technology (IT) and Operational Technology (OT) within their operations. As manufacturers embrace digital transformation—termed Industry 4.0—by integrating cloud computing, AI, and the Internet of Things (IoT), they inadvertently broaden their attack surface, making them more appealing targets for cybercriminals, particularly ransomware.
Manufacturers that have fallen victim to cyber attacks have experienced substantial financial losses, reporting costs ranging from US$200,000 to US$2 million due to issues affecting resilience or availability. The most significant impacts occur when incidents disrupt enterprise systems or production control processes.
Geraldine Kor, head of Global Enterprise Business at Telstra International, stressed the necessity of greater connectivity between IT and OT to leverage advanced technologies for manufacturing innovation. However, she cautioned that this integration heightens the risk of security breaches. “Very few firms are mature in protecting and defending against such cyber risks,” she noted, highlighting a fragmented approach to security responsibility that leaves many businesses directionless.
The study underscores the importance of establishing clear security responsibilities and integrating them into the organisational framework. A cohesive security strategy is essential, as a lack of accountability can hinder a firm’s ability to respond effectively to cyber threats.
Ganesh Narayanan, global head of Cyber Security at Telstra International, pointed out that many manufacturing sectors have historically relied on “air gapping,” a method where OT systems are isolated from corporate IT systems to mitigate external threats. However, with the increasing integration of IT and OT, this outdated strategy is no longer sufficient.
He suggests that organisations must address the risks associated with IT-OT convergence to unlock its potential benefits. He recommends prioritising security across six core areas: collaboration and planning, strategy definition, bolstering technical expertise, assigning responsibility, leveraging appropriate tools, and expediting readiness with established standards.
Omdia emphasised the need for firms to understand the critical attack vectors and lessons learned from previous incidents.
“Most firms have faced expensive outages and security incidents while their traditional security measures struggle to keep pace,” explained Adam Etherington, senior principal analyst at Omdia,
As the manufacturing sector continues to evolve, it is clear that enhanced awareness and preparedness are essential to protect against the rising tide of cyber threats. With downtime costs reaching alarming levels, proactive measures are imperative for safeguarding operations and maintaining competitive advantage in an increasingly digital landscape.