Ransomware in manufacturing is no longer a niche threat. You’ve likely seen headlines about industrial plants brought to a standstill by encrypted data and extortion demands. Small and midsize manufacturers often lack the cybersecurity budgets and expertise of larger corporations but face the same operational pressures, making you an attractive target for criminals. As you adopt more connected equipment and merge information technology (IT) with operational technology (OT), your exposure grows—and so does the need for a proactive, resilient strategy.
In this article, you’ll learn how ransomware trends are evolving, why small manufacturers are at heightened risk, and what the real costs look like when systems go dark. We’ll walk through case studies that illustrate common pitfalls and successful recoveries, then outline practical steps to strengthen your defenses and plan an incident response. Whether you’re aligning leadership around security investments or fine-tuning existing protocols, these insights will help you move from reaction to intentional resilience.
Rising Ransomware Threats
Escalating Incident Rates
Ransomware attacks against industrial organizations have surged in recent years. In 2024, ransomware incidents jumped 87 percent year-over-year, totaling 1,693 events according to Dragos’ Year in Review. Manufacturing remained the most targeted sector:
- 1,693 industrial events in 2024
- 708 incidents in Q1 2025 (up from ~600 the prior quarter)
- 68 percent of Q1 2025 attacks hit manufacturing
- 184 confirmed manufacturer incidents in Q3 2025—the highest of any industry
Between 2018 and October 2024 at least 858 manufacturing companies experienced ransomware breaches, resulting in an estimated $17 billion in losses and average downtime of 11.6 days at $1.9 million per day.
Advanced Attack Methods
Attackers are also refining their tools and tactics:
- AI-powered variants such as PromptLock that adapt encryption methods on the fly
- Bring Your Own Vulnerable Driver (BYOVD) exploits that blind endpoint detection at the kernel level
- Double and triple extortion schemes where data is stolen, systems are encrypted, and OT processes are targeted to amplify pressure
These trends underline why you must treat ransomware as a strategic risk rather than an IT nuisance.
Risk Factors Overview
Small manufacturers face a unique blend of vulnerabilities that elevate their risk profile:
- Legacy System Vulnerabilities
Many plants run outdated control systems and unpatched servers. Exploited vulnerabilities in legacy OT and IT environments caused 32 percent of manufacturing ransomware breaches in 2025. - Downtime Intolerance
For you, every hour offline can mean lost orders, idle workforce, and supply-chain penalties. That pressure often leads to faster ransom payments. - Limited Cybersecurity Resources
In 2025, 42.5 percent of victims cited a lack of in-house expertise, 41.6 percent faced unknown security gaps, and 41 percent lacked essential tools such as encryption and data-loss prevention. - Third-Party Weaknesses
Affiliate-based Ransomware-as-a-Service (RaaS) models allow attackers to enter through vendor and remote-access connections, making supply-chain security a critical concern.
Understanding these risk factors helps you prioritize investments and shape a more resilient security posture.
Assess Potential Impact
Operational Disruption Costs
Ransomware doesn’t just lock files–it halts production lines. Based on historical data:
- Average downtime: 11.6 days
- Daily operational loss: $1.9 million
- Cumulative losses since 2018: $17 billion
Recovery Expenses
Beyond ransom demands—often $1 million or more for manufacturers—recovery costs average $1.3 million per incident. When you include legal fees, regulatory fines, and lost productivity, total expenses can exceed $2.3 million without restoring full operational capacity.
Reputational and Compliance Risks
Double extortion tactics frequently involve data theft. In 2025, 39 percent of manufacturing organizations suffered both encryption and exfiltration, exposing customer details, design files, and trade secrets. That breach can trigger regulatory investigations and erode customer trust.
Examine Real Incidents
Case Study: Backup Failure and Recovery
In 2019, a midsize Tennessee manufacturer clicked a phishing link and triggered a ransomware infection. Criminals demanded 2 bitcoin per server (roughly $10,000), and because the existing backup solution missed key files, the company paid ransom on three critical servers. Operations were down for nine days before data was restored.
After the incident, the manufacturer deployed an appliance with automated ransomware detection and shifted to cloud-based Disaster Recovery-as-a-Service. Restore times fell from days to hours, and critical servers now benefit from a one-hour SLA.
Case Study: Forensics and Monitoring
In 2023, a global producer faced a similar attack originating from an inactive laptop in a shop floor network. With production losing $1 million per day, the company refused to negotiate with attackers. Instead, they:
- Engaged remote forensic specialists to analyze the breach
- Restored data from offline encrypted backups by the Wednesday after the attack
- Adopted continuous endpoint monitoring across their network
These steps allowed a swift return to normal operations and reduced future risk. Learn more about handling a major manufacturing cyberattack.
Strengthen Your Defenses
Preventing ransomware in manufacturing requires layered controls and ongoing vigilance. Key actions include:
- Maintain Offline Encrypted Backups
Keep copies of critical data off-site and air-gapped to ensure recovery even if your network is compromised. - Conduct Regular Assessments
Perform risk evaluations, vulnerability scans, and penetration tests to uncover gaps before attackers do. - Train Your Workforce
Educate employees on phishing recognition, password hygiene, and escalation procedures after suspicious activity. - Secure IT-OT Networks
Segment enterprise and industrial networks to limit lateral movement. Implement managed detection and response with OT visibility to catch threats early it vs ot security. - Adopt Continuous Monitoring
Use real-time analytics and alerting on critical endpoints to detect anomalies and respond before encryption begins. The #StopRansomware Guide by CISA offers detailed recommendations.
Plan Incident Response
A clear, practiced incident response plan helps you move swiftly when seconds matter. Follow a sequential approach:
- Detection and Analysis
Monitor logs and alerts to identify malicious activity. Execute your detection playbooks in the first 48 hours ransomware. - Reporting and Notification
Alert leadership, legal, and external stakeholders. File required breach notifications with regulators. - Containment
Isolate affected machines and network segments to prevent spread. - Eradication
Remove malware, change credentials, and apply required patches. - Recovery
Restore systems from verified backups. Test integrity before reconnecting to production. - Post-Incident Review
Conduct an after-action meeting to refine processes and update your incident response plan.
Regular tabletop exercises and plan updates ensure your team stays sharp and alignment remains strong across departments.
Draw Key Insights
Small manufacturers have become prime ransomware targets due to their operational urgency, legacy technology, and constrained cybersecurity resources. As threats evolve with AI-driven malware and extortion tactics that span IT and OT, you need both solid preventive controls and a battle-tested response plan. By understanding the risks, learning from real-world breaches, and investing in layered defenses, you can reduce downtime, limit financial loss, and maintain trust with customers and partners.
Need Help With Ransomware in Manufacturing?
Need help with ransomware in manufacturing? We connect you with the right specialists to assess your risk, implement robust backup and recovery solutions, and develop an incident response program tailored to your operational environment. Let us help you build resilience across both IT and OT domains. Contact us today to discuss your challenges and find the best path forward.
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