In recent years, the manufacturing sector has seen a dramatic rise in cyber threats. The industry’s reliance on connected devices and expansive global supply chains has magnified its vulnerabilities, enabling attacks to infiltrate across organizations—especially those without local IT managed services.

Critical infrastructure and intellectual property are especially at risk, exacerbated by legacy systems with inherent security vulnerabilities. As a result, the manufacturing industry faces devastating attacks that can cause physical damage, operational disruption, and financial losses. Let’s take a look at some of the most recent attacks and how your security can improve to prevent similar incidents.

1. Ransomware Is Still a Major Threat

In recent years, ransomware attacks have severely impacted several major players in the manufacturing industry, including the following:

• JBS: JBS faced a debilitating ransomware attack that forced them to temporarily shut down operations for over five days, disrupting the global food supply chain.
• Bridgestone Americas: Bridgestone Americas was not spared in 2022 as they suffered from a ransomware incident that led to a considerable downtime in both North America and Latin America.
• Simpson Manufacturing: Most recently, Simpson Manufacturing faced significant challenges in 2023 when a ransomware attack caused systems to go offline for three months.

Each of these instances led to disrupted operations, halted production, and significant financial losses—$11 million USD for JBS alone. The increasing sophistication of attacks and ransom demands have made ransomware a major threat that businesses in the manufacturing industry cannot afford to ignore.

Key Takeaway: Ransomware remains one of the most dangerous and costly threats for manufacturers. It’s essential to have backup strategies, crisis response plans, and local IT managed services.

2. Supply Chain Vulnerabilities Are Prime Targets

Supply chain vulnerabilities have become a prime target for cybercriminals, allowing them to gain access to multiple organizations simultaneously and completely disrupt operations.

• Applied Materials: In 2023, Applied Materials (a multi-billion dollar business) experienced a supply chain attack that resulted in significant production delays, affecting their ability to deliver critical components to tech companies worldwide. This led to a $250 million loss.
• Toyota: In 2022, Toyota faced a severe supply chain cyberattack that forced 14 production plants to halt operations temporarily, leading to about 13,000 vehicles of lost output.

A breach at one supplier can ripple through and disrupt global manufacturing operations. These attacks highlight the widespread impact of a single point of vulnerability, and how the interconnectivity of global supply chains exposes weak links that can be exploited easily.

Key Takeaway: Organizations need to assess and fortify the weakest points in their supply chains to prevent widespread disruptions from cyberattacks.

3. Personal Data is a Growing Target

Personal data has become an increasingly valuable target for cybercriminals, who exploit the stolen information for identity theft, financial fraud, and unauthorized access to secure systems.

• Brunswick Corporation: Brunswick Corporation suffered a data breach in 2023 that exposed sensitive personal information, including names, social security numbers, mailing addresses, driver’s license numbers, health information, and payment card data of employees and customers.
• Bridgestone Americas: In addition to the ransomware incident, Bridgestone Americas faced a personal data breach where employee and customer data files were compromised. The breach not only jeopardized personal privacy but also damaged trust and posed legal challenges.

The world is seeing a trend of attackers exfiltrating personal data. Often seen as a valuable commodity, it’s a growing target that is more lucrative than merely disrupting operations. Unfortunately, these data leaks lead to massive financial and reputation damage, especially in cases similar to Brunswick Corporation, which had to file notice with their Attorney General’s Office as per state laws.

Key Takeaway: Manufacturers need to adopt stronger data privacy and encryption practices from local IT managed services—not just for operational data, but also to protect customer and employee information.

4. Long-Term Consequences for Business

The aftermath of cyberattacks can have lasting effects on a business’s operational capabilities and market reputation.

• Simpson Manufacturing: Simpson Manufacturing experienced a profound impact when their systems remained offline for three months following a significant ransomware attack. This prolonged downtime led to a noticeable drop in their stock value.
• Toyota: Toyota, on the other hand, continues to grapple with the long-term consequences of customer data exposure following its supply chain cyberattack. The ongoing issue of data breaches has eroded customer trust and subjected the company to potential legal and regulatory challenges.

Successful cyberattacks can affect your company’s stock value, customer trust, and future sales. Without proper local IT managed services and cyber resilience strategies, businesses can struggle to fully recover from the consequences of a cyberattack.

Key Takeaway: The long-term costs of cyberattacks can extend far beyond immediate losses, impacting brand reputation and stock prices.

5. Paying Ransoms Is Not a Reliable Solution

Paying ransoms to cybercriminals can seem like a quick fix when facing the immediate consequences of a cyberattack, but it often contributes to the longevity and proliferation of these threats.

• JBS: This food processing giant opted to pay the attackers $11 million in hopes of securing their data. However, they ultimately managed to restore their systems independently and continue to face ongoing security questions, highlighting how ransom payments don’t guarantee the problem is solved.
• Johnson Controls: While less publicized, Johnson Controls had to spend $27 million on remediation despite not confirming whether the ransom was paid, demonstrating how ransom demands are just one part of the financial fallout

These examples illustrate the importance of prioritizing prevention, resilience, and avoiding a response plan that relies on ransom payments. Investing in strong local IT managed services and comprehensive security strategies is crucial to mitigating the impact of potential cyber threats and avoiding the pitfalls associated with ransom settlements.

Key Takeaway: Paying ransoms might seem like a quick fix, but it often leads to further complications and financial losses with no guarantee that attackers won’t strike again.

Avoid the Pitfalls of Cyberattacks With Local IT Managed Services From IronEdge

As the manufacturing industry continues to face evolving cyber threats, it’s essential to proactively protect your business with strong local IT managed services. IronEdge offers comprehensive cybersecurity solutions tailored specifically for businesses in the manufacturing sector. Don’t let your business become the next victim—contact IronEdge now to secure your data, operations, and reputation.