Cybercriminals are targeting manufacturing

Cyberattacks are hitting U.S. manufacturers harder than ever. With a record 317 reported breaches in 2024 (a 22% jump from the year before), global losses are expected to surge to new highs in 2025.

Manufacturers are particularly vulnerable because of complex infrastructures, legacy systems, reliance on cloud platforms, and vast stores of sensitive data. These factors create more entry points for attackers and raise the stakes of every breach.  

Why Manufacturing Is a Desirable Target

The convergence of Information Technology (IT) and Operational Technology (OT) has significantly expanded the attack surface for manufacturers. As they adopt more connected systems and digital tools, the complexity of their environments grows, making it harder to secure every endpoint and data flow.

One of the most compelling reasons cybercriminals target this sector is the high cost of unplanned downtime. Every minute of halted production can lead to substantial financial losses, missed delivery deadlines, and damaged customer relationships.

Ransomware attacks, which lock down critical systems until payment is made, are especially devastating. They can bring entire operations to a standstill, delay fulfillment, and erode trust. With margins already squeezed by inflation and tariffs, few manufacturers can absorb such shocks without lasting scars.

In addition to operational risks, manufacturers are also targeted because:

• They manage high-value data that is highly sought after on the dark web, such as engineering designs, proprietary production processes, and personal identifiable information (PII) of employees and customers.
• Many still rely on legacy systems and fragmented IT/OT infrastructures, which lack modern security controls and are difficult to monitor comprehensively.
• Cybersecurity programs in manufacturing are often underfunded, leaving gaps that attackers can exploit.

A stark example of these risks materialized earlier this year when a hydraulic components manufacturer suffered a ransomware attack. The breach resulted in the theft of 1.8 terabytes of sensitive data, including engineering files and corporate strategies. This incident disrupted operations and exposed the company to significant reputational and financial damage, underscoring the real-world consequences of inadequate cybersecurity in the manufacturing sector.

What a Manufacturing Breach Can Cost You

The financial and operational impact of a breach in manufacturing is staggering. Ransomware attacks cost manufacturers an average of $1.9 million for every day of downtime, with incidents lasting an average of 11.6 days. That means a single event can easily exceed $20 million in direct losses, not including long-term reputational harm and regulatory costs.

To better understand the full scope of impact, consider the following breakdown of direct and indirect costs:

Direct Costs

• Forensic investigations and emergency incident response
• Legal defense, fines, and regulatory enforcement penalties
• Ransom demands to restore access or prevent data exposure
• Mandatory breach notifications and contract-related penalties

Indirect Costs

• Production halts, missed deadlines, and cascading supply chain disruptions
• Reputational damage and erosion of customer trust
• Increased cyber insurance premiums
• Long-term compliance scrutiny, audits, and reporting obligations

These costs often extend over several years, especially when regulatory bodies require corrective action plans, policy overhauls, and continuous monitoring.

Steps to Take to Reduce the Risk of a Cyberattack

Investing in cybersecurity before a breach occurs is far more cost-effective than responding after the fact. Proactive measures can significantly reduce exposure and build resilience across manufacturing operations.

To strengthen your defenses and minimize risk, consider implementing the following best practices:

• Segment networks to contain ransomware spread
• Enable multi-factor authentication (MFA) and privileged access controls
• Patch systems regularly to close known vulnerabilities
• Back up critical data securely and test recovery processes
• Conduct tabletop exercises to sharpen incident response
• Train employees to recognize phishing and social engineering threats

We Can Help

With ransomware and cyberattacks rising sharply in manufacturing, proactive cybersecurity has become a strategic priority to protect operations, safeguard customer trust, and maintain sustainable growth. By assessing vulnerabilities and strengthening governance, manufacturers can reduce risk, control costs, and position themselves for long-term resilience.

At Elliott Davis, we understand the unique cybersecurity challenges facing the manufacturing industry. Our team helps manufacturers:

• Identify and remediate vulnerabilities across IT and OT environments
• Conduct comprehensive cybersecurity assessments to evaluate current controls and practices
• Recommend scalable security frameworks tailored to manufacturing operations
• Guide organizations through regulatory compliance and risk management requirements

Don’t wait for a breach to expose vulnerabilities. Contact our team today to schedule a tailored cybersecurity assessment and gain the insights needed to protect your manufacturing operations against tomorrow’s threats.

The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.