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Manufacturers Grapple with Escalating Cyber Threats to Supply Chains

As Cyberattacks Target Manufacturing, the Industry Adapts to Safeguard Supply Chains Amidst a Web of Threats.


In an unprecedented twist, manufacturers find themselves on the frontline of cyberattacks, signalling a paradigm shift in the threat landscape. As global supply chains face multifaceted challenges—from geopolitical crises to climate-induced disruptions—the spectre of cybercrime looms large. In the wake of a turbulent era, securing downstream supply chains proves as pivotal as fortifying the core business against cyber threats.


Manufacturers in the Crosshairs


A significant surge in cyber threats has placed manufacturing companies under the spotlight, with last year marking the sector as the primary target for cyberattacks, surpassing financial services and insurance, according to IBM's X-Force Threat Intelligence Index 2022. The interconnectedness of global supply chains further amplifies the stakes, as cyber breaches in wider supplier networks cause production bottlenecks, hobbling supply chains.


Digital Transformation: A Double-Edged Sword


The rush to adopt digital technologies for enhanced productivity on the factory floor has inadvertently exposed manufacturers to heightened cyber risks. Automation technologies, including robotics and the Internet of Things (IoT), expand the attack surface for hackers, creating new vulnerabilities. As manufacturing embraces digitisation, the need for resilient supply chains becomes imperative.


Tackling Challenges in Building Resilience


Crafting resilient supply chains presents a myriad of challenges for company executives, encompassing secure deployment of manufacturing technologies, evaluation of weaknesses in supplier networks, and the management of third-party security threats. Third-party vulnerabilities pose a particular risk, with smaller suppliers often lacking the financial resources of larger counterparts, rendering them attractive targets for cybercriminals.


Toyota's Wake-Up Call


The vulnerability of supply chains is underscored by real-world incidents, such as Toyota's encounter with a cyber breach at a critical supplier. The aftermath led to a shutdown of the auto giant's Japanese factories, impacting the production of around 13,000 vehicles in a single day. For industry leaders like Toyota, reviewing supplier networks to unearth cyber vulnerabilities becomes a critical step.


Navigating the Cybersecurity Landscape


Establishing robust cybersecurity measures involves more than seeking certifications. While standards like ISO 27001 provide a starting point, the focus must shift to safeguarding interconnected systems in the era of Industry 4.0. Manufacturing groups are urged to employ security experts for vendor qualification, conducting thorough mapping of the factory floor to ensure robust security processes.


The Human Factor


As the adage goes, a chain is only as strong as its weakest link. Recognising the human factor in cybersecurity, particularly in smart factories, is crucial. Production engineers designing, building, and maintaining systems must receive special attention to prevent breaches caused by human error, omission, or negligence. Education on strong cybersecurity practices becomes paramount.


Addressing Intellectual Property (IP) Crime


Beyond traditional cyber threats, manufacturers grapple with intellectual property (IP) crime. The theft and illicit sale of patents, trademarks, and industrial designs pose a growing risk. Mitigating this threat requires creating layers of defence around both technology and personnel, emphasising the importance of cybersecurity education and securing connected devices on the factory floor.


Looking Ahead: Automating with Caution


As the manufacturing landscape shifts towards automation and digitisation, the industry faces a pressing need for comprehensive cybersecurity measures. The challenge extends beyond individual companies, with a collective responsibility to secure the entire supply chain. Education, collaboration, and proactive cybersecurity practices emerge as essential components in navigating the evolving cyber risks to supply chains.


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