As remanufacturing grows and embraces modern day digital tools, cybersecurity risks are rising—read on to discover why strong cybersecurity measures are needed to protect the industry's future.
The remanufacturing industry is growing as businesses embrace more sustainable practices and the idea of the circular economy. Remanufacturing extends the lifecycle of products by restoring used components to like-new or better conditions, reducing waste, saving money, and conserving overall resources. However, as the industry becomes more digitized with tools like artificial intelligence and machine learning, it also becomes more vulnerable to cyber threats (UpGuard). Cybersecurity is now a serious concern for remanufacturing operations, as it poses a risk to all aspects of the organization. “In 2022, manufacturing had the highest share of cyber-attacks among leading industries worldwide and the third quarter of 2023 marked a 15% increase over the previous” (The World Economic Forum).
Cyberattacks can target vulnerable systems and cause major issues such as production disruptions, data breaches, and theft of intellectual property. With remanufacturing often involving reverse engineering, valuable product designs or customer data may be stolen during an attack. To combat these risks, companies must implement strong cybersecurity protocols, such as encryption and multi-factor authentication to protect their information as much as possible.
Supply chain vulnerabilities also pose significant risks, as a cyberattack on any supplier can disrupt the entire production process. Additionally, compliance with industry-specific regulations is essential, particularly in sectors like automotive and electronics. “Heightened connectivity and data transparency has made manufacturing the most targeted sector for cyberattacks for three years in a row. It now accounts for 25.7% of attacks, with ransomware involved in 71% of these incidents” (The World Economic Forum). This is why, at AER, we take many thought-out preventative measures to ensure that our digital information and stored data are behind an airtight cyber fortress. Many of our clients trust us with sensitive material and we refuse to cut corners when it comes to safety.
Ultimately, having strong cybersecurity protocols in place not only protects operational integrity but also builds trust with customers and partners. Companies should not take these threats lightly, and those that prioritize online safety will be better positioned to compete in a digitalized remanufacturing world.
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