Manufacturing Industry Focuses On Security

Growing cybersecurity threats and data privacy regulation have made security a major focus for manufacturers, reveals ISG Provider Lens™ report.

North American manufacturing enterprises are investing in new technologies and services to compete during a period of significant change, according to new research from global technology research and advisory firm Information Services Group (ISG).

Economic shifts, evolving customer expectations, and advancements in technology are forcing companies to adapt or replace traditional approaches to product design and production, according to the 2024 ISG Provider Lens™ Manufacturing Industry Services and Solutions report for North America. Many are changing the way they run factories, optimizing supply chains, increasing sustainability and integrating after-sales services into their business models.

“North American manufacturers have embraced the factory of the future,” said Bob Krohn, partner at ISG. “Working with service providers, many companies are using AI and the cloud to make production systems more efficient and resilient.”

Manufacturing Industry Security
(Image: Adobe Stock / Generated with AI by Imsuniyah)

Companies in the region are aggressively investing in digital technologies, especially artificial intelligence (AI) and machine learning (ML), for product design and production, according to ISG. Under pressure to bring new products to market faster, manufacturers are using AI-enabled tools for more efficient design and rapid prototyping. Generative AI platforms are already in use at some companies, streamlining product design and engineering.

To increase both revenue and customer satisfaction, North American manufacturers are introducing services alongside or instead of traditional products, finds the report. They are partnering with service providers to implement business models that may include offering subscription, pay-per-use and asset-as-a-service options. An increasing focus on after-sales servicing, repairs and condition monitoring can also help companies extend product life cycles.

Security Is A Major Focus For Manufacturers

Growing cybersecurity threats and data privacy regulation have made security a major focus for manufacturers, according to ISG. In North America, they are especially focused on the cybersecurity of critical infrastructure. Most operational technology (OT) systems are outdated and lack built-in security, while OT networks are becoming more complex and harder to protect as they incorporate new kinds of devices.

Manufacturing supply chains have gone from one disruption to another in recent years, from COVID-19 to wars and increased tariffs, so North American manufacturers are investing in new technologies and strategies to gain resilience, the report says. To predict and avoid disruptions, they are adopting cloud-based supply chain management, advanced analytics, real-time IoT tracking and AI-enabled optimization. Moving production to closer countries, such as Mexico, is also part of manufacturers’ playbooks.

“The changes of the past several years have spurred manufacturers into action,“ said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Digital transformation and a culture of continuous improvement can position them for long-term success.”

The report also explores other manufacturing industry trends in North America, including the growing use of AI in employee training and an increasing focus on sustainability in response to regulatory and investor pressures.

Read more about business resilience in the manufacturing industry on Continuity Insights.

Artificial Intelligence, Business Continuity, Cyber, Enterprise Risk, Facility Management, Featured, Productivity, Security, Technology

Artificial Intelligence (AI), Critical Infrastructure, Cybersecurity, Data Privacy, Information Services Group (ISG), machine learning, Manufacturing, North American Manufacturing, security, Supply Chains

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