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The Hidden IT Risks That Quietly Shut Down Manufacturing Companies

What Would 7 Days of Production Downtime Cost You?

Most small-to-midsize manufacturers don’t fail because of competition. They fail because operations stop for many reasons, including but not limited to IT. When it comes to IT, you need a provider who truly understands the unique demands of manufacturing. We specialize in supporting manufacturing environments, giving us a deeper level of experience than general IT companies. While every operation is different, most manufacturers share core IT requirements — and we know exactly how to support them.

The Reality No One Talks About

If you run a manufacturing company, your entire business depends on:

  • ERP working
  • CNC file transfers working
  • Inventory accuracy
  • Vendor access
  • Email functioning
  • Accounting online
  • Backup actually restorable

One ransomware incident.

One corrupted server.

One failed backup.

Production stops.

The 7 Manufacturing IT Risks That Keep Owners Up at Night

1. ERP Downtime

No orders. No shipping. No invoicing.

IT Solution: If your ERP is in the cloud, ensure you have multiple backup internet streams that work in tandem. So, one fails, and another one can take the load without any IT involvement. While a power outage may not have an IT solution, we can work with you on finding backup power solutions. If your ERP is on-premise, keep ERP servers on backup and a disaster recovery system so they can take over if one server fails.

2. Ransomware

Average downtime: 5–10 days.

Real impact: $100,000–$250,000+ for a $5M shop.

IT Solution: Set up a system to recover operations in hours—not days.

Solution:

  • 3 copies of data
  • 2 different storage types
  • 1 off‑site
  • 1 immutable (undeletable) backup

Why it matters: Ransomware typically encrypts local backups too. Immutable/cloud‑isolated backups guarantee recovery.

3. Insider Data Theft

CAD files walking out the door.

IT Solution: Implement Data Loss Prevention (DLP), Enforce Zero‑Trust + Role‑Based Access, and enable File Activity Monitoring & Alerts to track downloads, USB transfers, and unusual access in real time.

4. Vendor Remote Access Vulnerabilities

Your weakest vendor is your biggest risk.

IT Solution: Put vendor systems in their own VLAN so you can interact with them, but they cannot without your work network. These include heavy machinery, security cameras, etc.

5. Outdated Shop Floor PCs

Legacy Windows machines controlling equipment = open doors.

IT Solution: Look at replacing legacy PCs because the one-time cost (over 3-5Yrs) of replacement is a drop in the budget compared to the risk of using unsupported hardware.

6. Backup That Has Never Been Tested

Having backup does not necessarily mean being able to restore.

IT Solution: Ensure those backups are tested regularly. There are automated systems available that can do that without significant downtime. In addition, perform mock Disaster Recovery periodically because those mock tests will reveal any gaps in successful recovery. For e.g., if your organization uses a backup domain controller as an additional primary domain controller, but what if your backup domain controller cannot function when the primary domain controller is intentionally shut down? Those types of gaps will surface when you perform disaster recovery mock tests.

7. Cyber Insurance Denial

Many claims are denied due to missing controls.

IT Solution: Cyber insurance claims can be denied if required security controls are missing — even if you marked them as ‘in place’ on the application. Avoid filling out the cyber insurance application yourself; let your IT team handle it. They can identify gaps and recommend solutions before you attest to having a control. The last thing any business wants is to face a cyber incident only to learn their coverage is denied.

Why Your Competitors Are Pulling Ahead

Smart manufacturers are investing in:

  • Network segmentation
  • MFA everywhere
  • Tested disaster recovery
  • Real-time production dashboards
  • Secure remote access
  • IT documentation and compliance readiness
  • Reputation protection from inside and outside threats.

They’re winning bids because they look secure and stable.

What It’s Really Costing You

Every manufacturing company is different, but here is an example for a $5M manufacturing company:

  • 2% productivity gain = $100,000/year
  • 1% scrap reduction = $50,000/year
  • Avoiding one ransomware event = $200,000+

Modern IT isn’t overhead. It’s operational insurance.

Get a Manufacturing IT Risk Snapshot

Let us identify the risks quietly threatening your production — before they cost you six figures. Consulting with us won’t cost you anything. How to reach us? Call us at (951) 777-2004 or email us at [email protected].