The Wisconsin Center for Manufacturing & Productivity says cybersecurity may be the “Achilles’ heel” for manufacturers as online threats become more sophisticated thanks to AI.
The WCMP recently released its Growth Opportunities in Manufacturing report, ahead of insights from the more in-depth Wisconsin Manufacturing Report being unveiled in early October through a series of readout events.
Buckley Brinkman, executive director and CEO of the WCMP, underlines the importance of continued growth, calling it the “lifeblood” of any successful manufacturing business.
“The emphasis on domestic manufacturing plays to our strengths as a state and major investments in AI and green manufacturing provide additional momentum during 2024,” he said in the report. “The manufacturers who lean into growth and take advantage of these opportunities will thrive into the future.”
The report notes companies that “focus too intently” on reducing costs may undermine their own future growth, while investing in automation and boosting productivity can help reduce workforce pressures. Large companies are able to adopt automation more quickly, while smaller manufacturers are finding it “much more challenging” to deploy automation technology and benefit from it.
“The inability to implement automation projects increases the productivity gap between large and small companies, placing small companies in a precarious long-term position,” report authors wrote.
The differences between small and large manufacturers also come into play in cybersecurity, as the report notes larger companies present more prominent targets for hackers. But at the same time, smaller companies with fewer cybersecurity resources “may make a more attractive target,” report authors noted. Still, larger companies are reporting getting hacked more often.
Last year, 39% of manufacturing companies with 50 or more employers were hacked, marking a 129% increase from 2021, according to the report. Meanwhile, 17% of those with fewer than 50 employers were hacked last year — a 13% increase from 2021.
WCMP says cybersecurity threats will continue to increase as more machines are controlled remotely through computers rather than manually, while hackers using AI and other new technologies can “launch increasingly sophisticated attacks” against companies. The report urges manufacturers to constantly adapt their defensive strategies to these threats and create plans for responding to an incident.
See the report and get more info on the upcoming Wisconsin Manufacturing Report.
