More than half of manufacturers have been the victim of cyber-crime, and a third of those have suffered some financial loss or disruption to business as a result, according to a new report published today.
Manufacturing sector is the fifth most targeted for attack in 2019, behind government systems and finance. Yet manufacturing - which has 2.6 million employees, provides 10 per cent of UK output and 70 per cent of business research and development – remains amongst the least protected sector against cyber-crime in Britain.
The new report, “Cyber-Security and Manufacturing – A Briefing for Manufacturers by Make UK”, revealed the full extent of the threat across the sector from loss of data, theft of capital and intellectual property along with disruption to business and catastrophic impact on the trading reputation of a business. Alarmingly, all expert opinion points to the fact that many more attacks will have gone undetected, with businesses woefully prepared to protect themselves against this ever-growing threat or to detect a breach after the event.
Cyber threat is increasingly a business-critical issue, with 41% of manufacturers reporting that they have already been asked by a customer to demonstrate or guarantee the robustness of their cyber security processes. Yet, when asked if they would be able to do this successfully, 31% of businesses said they would be unable to give those guarantees of cyber safety if asked.
Investment in the latest digital technologies is also being hampered, with many companies holding back from implementing the latest innovations for fear of increased exposure to cyber-attack. Some 35% of businesses admitted they are currently not fully investing in new digital processes even when not doing so will leave them unable to compete in an ever-changing and developing global marketplace.
Commenting Stephen Phipson, CEO of Make UK, the manufacturers’ organisation said: “Digitisation is revolutionising modern manufacturing and no facet of our sector will be untouched. The rewards are obvious - technological leaps in the design, development, fabrication and operation of the goods and services the UK makes. But the cyber security threat to manufacturers is growing and evolving with it.
“No business can afford to ignore this issue any longer and too many are still burying their heads in the sand. This is a strategic threat; failing to get this right as a nation could cost the UK economy billions of pounds and put thousands of jobs at risk.
“Make UK recognises the vital role we can play in supporting manufacturers in the face of this challenge. That is why we are partnering with leading cyber security experts Vauban Group to make sure we are able to help our members with the latest protective technologies and support to deliver new cyber security services that will help manufacturers mitigate against current and future threats.”
Mitch Scherr, CEO of Vauban Group, said: “As manufactures continue to innovate and invest in new technologies, there has never been a greater need for more effective cyber defences to mitigate against the increasingly sophisticated cyber threats we’re seeing today.
“Make UK continues to lead the way for manufacturing in the UK and we’re pleased to be working closely with them, delivering services and solutions that meet both the business and cyber security needs of all manufacturers, including SMEs, ultimately improving the resilience of the UK’s manufacturing industry in these uncertain times.”