Sikich Report Finds That Manufacturers and Distributors Neglect Key Cybersecurity Activities

Less than 40% of respondents in Sikich's 2020 Manufacturing and Distribution Report said they perform important data breach prevention activities, such as penetration testing, phishing exercises on employees and assessments of vendors' data security efforts. However, manufacturers and distributors remain vulnerable to breaches. Nearly half of respondents said their companies experienced cyberattacks during the past 12 months. "Cybersecurity is an essential part of a company's operations, but too few manufacturers and distributors take the necessary precautions to protect sensitive data," said Brad Lutgen, partner-in-charge of Sikich's cybersecurity team. "The coronavirus pandemic, which sent many office workers to insecure remote environments, has only elevated the risk these companies face. Manufacturers and distributors must commit to a comprehensive cybersecurity strategy that includes everything from technical updates to employee training." The report also reveals extensive use of some advanced technologies, but stubbornly slow adoption of others. Eighty-six percent of respondents said their companies use cloud storage and solutions, and more than 60% use forecasting software, data-driven customer service technologies, advanced analytical tools, data visualization, and the internet of things. But only about half of the executives surveyed said their companies use robotics, robotic process automation and 3D printing/additive manufacturing. And 39% said they use blockchain and augmented virtual reality.