CYBERSECURITY MANUFACTURING

Cyber Attacks Now Hit 30% of Manufacturers as Supply Chain Risks Escalate

TM
Techmediaglobal
| 4 min read
30%
MANUFACTURERS HIT
71%
LACK SUPPLIER COMPLIANCE
46%
SAW HIGHER COSTS/DOWNTIME
23%
HAVE A DEDICATED CISO

Cybersecurity has become an operational risk for manufacturers rather than a purely technical concern. A new report from Make UK, The Manufacturer's Organisation finds that nearly a third of manufacturers have now been hit by a cyber incident either directly or through their supply chains, exposing production lines, supplier networks, and business continuity to growing threats.

Cyber Resilience Gains Ground

The report highlights that incidents carry particular weight for manufacturers because they connect directly to physical production through operational technology, robotics, and connected machinery. When these systems are disrupted, the result is halted production lines, delayed orders, and frustrated customers.

Those effects don't stay contained to a single company. According to Steve Bradford, Senior Vice President and General Manager for EMEA at SailPoint, manufacturing has long been an attractive target because supply chains tend to be sprawling and complex, with legacy systems and scattered tooling giving attackers easy openings. He notes that compromising just one supplier's credentials can be enough to disrupt an entire supply and demand network.

Digital Systems Introduce New Vulnerabilities

Manufacturing used to run largely in isolation. Today, factory floors are wired into business systems, cloud platforms, supplier networks, and remote monitoring tools, and each connection adds another potential point of entry for attackers.

Of the 30% of manufacturers affected by cyber incidents over the past year, two-thirds managed to mitigate the damage, while the remaining third faced serious financial and operational fallout. Among companies hit by attacks on their suppliers, 31% reported delayed customer deliveries and reduced output, 23% saw material shortages and supplier delays, and 8% experienced logistics disruption and higher costs.

There is a silver lining: cyber assurance is climbing the corporate agenda. Nearly a quarter of manufacturers now ask suppliers to prove their cyber compliance, and a similar share have themselves been asked by customers to do the same. Still, the report finds that 71% of manufacturers have no such requirements in place at all.

"Critical infrastructure, including manufacturing, has long been favoured by cybercriminals."

— Steve Bradford, SVP & GM EMEA, SailPoint

Financial Impact Extends Beyond Ransom

The true cost of an attack goes well beyond any ransom demand. Among impacted companies, 46% pointed to rising operational costs and production downtime as the most common consequence. Supply chain disruption, ransom demands, and data breaches were cited by 15%, while a further 8% reported reduced output and delayed orders.

On the barriers side, cost and lack of awareness of available solutions were cited by 31.8% of respondents as the main obstacle to improving resilience. Over one in seven felt existing solutions weren't relevant to their business, and 18.2% said providers simply don't understand how manufacturers operate.

AI Agents Are Reshaping the Threat Landscape

Bradford notes that British businesses are adding as many as 10,000 AI agents and machine identities every month. While these systems bring real efficiency gains, they also create a new category of insider risk, since they typically require broad access permissions and operate at machine speed.

Frontier AI is also changing how attackers find and exploit weaknesses. Bradford argues manufacturers need to secure their "agentic workforce" just as carefully as their human one — granting system access only when and where it's genuinely needed, and revoking it aggressively when it isn't. Despite these pressures, only 23% of manufacturers currently have a dedicated Chief Information Security Officer, pointing to a meaningful gap in security leadership across the sector.

Key Takeaways

  • 30% of manufacturers have been hit by a cyber incident directly or through their supply chain in the past year.
  • Connected operational technology and robotics mean attacks can halt physical production, not just IT systems.
  • 71% of manufacturers still have no mandatory cyber compliance requirements for their suppliers.
  • Financial damage extends well beyond ransoms, with 46% citing higher operational costs and downtime as the top impact.
  • The rapid rollout of AI agents and machine identities is creating new insider-risk exposure for manufacturers.
  • Only 23% of manufacturers have a dedicated CISO, highlighting a security leadership gap across the sector.
Tags: Cybersecurity Manufacturing OT Cybersecurity Third Party Risk Supply Chain Compromise Cyber Resilience AI Agents