According to the New Jersey Manufacturing Extension Program (NJMEP), cyberattacks targeting manufacturers have surged in recent years, with ransomware emerging as one of the most disruptive threats to production and supply chain stability.
Once considered an issue for large corporations and financial institutions, ransomware has evolved into a weapon cybercriminals use against small and mid-sized manufacturers—businesses often seen as easier targets due to weaker cybersecurity defenses.
For manufacturers, the stakes are high. A single ransomware attack can halt operations, delay shipments, compromise sensitive data, and result in costly ransom payments. Worse, many companies without a cybersecurity recovery plan never fully recover from an attack.
With threats increasing in both frequency and severity, cybersecurity is no longer an option—it’s a necessity. Manufacturers must take proactive steps to protect their operations, or risk becoming the next cautionary tale.
Why Are Hackers Targeting Manufacturing?
Cybercriminals target manufacturers for a simple reason: they cannot afford downtime. Unlike a company that primarily deals with digital data, a manufacturer relies on physical production to stay operational. If systems are locked down by ransomware, production halts, deadlines are missed, and losses accumulate rapidly.
Other factors that make manufacturers attractive targets include:
- High Stakes for Ransom Payments – A ransomware attack can shut down production entirely, making manufacturers more likely to pay a ransom just to get operations back online. Hackers know this and exploit it.
- Aging Infrastructure and Legacy Systems – Many manufacturers still rely on outdated software and unpatched systems, making them easy targets for cybercriminals looking to exploit vulnerabilities.
- Supply Chain Weaknesses – Manufacturing is deeply interconnected, and hackers often target small suppliers or third-party vendors as an entry point to larger networks.
- Lack of Cybersecurity Awareness – Many employees are unfamiliar with modern cyber threats, making them more susceptible to phishing attacks, which are the most common entry point for ransomware.
Unlike financial institutions or government agencies, many manufacturers don’t have dedicated cybersecurity teams, making it easier for attackers to breach their systems unnoticed.
How Ransomware Attacks Happen
Ransomware attacks follow a simple but devastating pattern: hackers gain access to a company’s network, encrypt critical files, and demand a ransom for their release. The longer a company takes to respond, the higher the cost in lost productivity and potential ransom payments.
Common Entry Points for Ransomware in Manufacturing:
- Phishing Emails & Social Engineering – Employees unknowingly download malware by clicking on deceptive links or opening infected attachments.
- Unpatched Software & Legacy Systems – Hackers exploit known vulnerabilities in outdated operating systems, machines, and software.
- Compromised Credentials – Weak or stolen passwords allow attackers to gain access to internal systems and production networks.
- Supply Chain Attacks – Hackers use third-party vendors as an entry point to infect manufacturers through trusted but unsecured connections.
Without proactive monitoring and security measures, an attack can spread across production lines, inventory systems, and customer databases, causing widespread disruption.
The Cost of a Cyberattack: A Real-World Example
To understand the true impact of ransomware, look no further than the 2021 cyberattack on JBS Foods, one of the world’s largest meat processing companies. Hackers gained access through a compromised account, encrypting files and halting operations across the U.S., Canada, and Australia.
The result?
JBS paid an $11 million ransom to regain control of its systems.
Factory shutdowns caused massive supply chain disruptions across multiple industries.
The attack exposed vulnerabilities that regulators and businesses are now scrambling to address.
JBS was fortunate—they recovered their data and resumed operations. But the attack exposed a massive vulnerability in industrial cybersecurity. If a company of that size can be compromised, any manufacturer can be next.
