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UK manufacturers face rising hacking risk as survey shows 30% were hit last year

Created at 10 Aug · 5:16 AM1 source↑ Market-relevant
IN SHORT

A survey by MakeUK reveals that 30% of British manufacturers experienced a cyber-attack in the past year, impacting production and costs. The report highlights the increasing threat from sophisticated hackers, exacerbated by generative AI, and notes that only half of affected companies have response plans.

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Key Numbers

30%manufacturers hit by cyber-attack
12 monthsperiod of cyber-attack survey
£14.7bnannual cost of cybercrime to UK economy
£1.9bnestimated cost of JLR cyber-attack
30%manufacturers reporting supply chain attack impact

Who's Involved

MakeUK
lobby group for British manufacturers that conducted the survey
JLR
automotive employer hit by a major cyber-attack
Cyber Monitoring Centre
provided analysis on the cost of the JLR hack
National Cyber Security Centre (NCSC)
involved in the response to the JLR attack
Jonathon Ellison
director of national resilience at NCSC
IMI
FTSE 100 valve maker that reported a cyber-attack
Smiths Group
FTSE 100 components maker that reported a cyber-attack
Marks & Spencer
retailer that suffered a costly data breach
Co-op
retailer that suffered a costly data breach
Harrods
retailer that suffered a costly data breach

↳ Why This Matters

The increasing frequency and sophistication of cyber-attacks pose a significant threat to the UK manufacturing sector, impacting production, costs, and the broader economy. The lack of preparedness among many companies highlights a critical vulnerability that could have far-reaching consequences.

Key facts

  • 30% of British manufacturers experienced a cyber-attack in the past 12 months, according to a MakeUK survey.
  • Half of the affected manufacturers had no plan in place to respond to a cyber-attack.
  • The JLR cyber-attack, attributed to Russian hackers, cost the UK economy at least £1.9bn.
  • Generative AI is contributing to the increasing sophistication and urgency of cyber threats.
  • Supply chain attacks resulted in delivery delays or output cuts for about 30% of affected manufacturers.

Nearly a third of British manufacturers have been targeted by cyber-attacks, either directly or through their supply chains, according to a new survey highlighting the escalating threat to the sector. The report by MakeUK found that 30% of manufacturers experienced a cyber-incident in the past 12 months, resulting in lost production time and increased costs. Alarmingly, only half of these companies had a plan in place to respond to such an event. The increasing sophistication and number of hackers, often backed by hostile states, are driving this trend. The UK government estimates that cybercrime costs the economy £14.7 billion annually. The emergence of generative AI systems capable of autonomous hacking has added further urgency to the need for enhanced defenses. Manufacturers' efforts to boost productivity through factory connectivity have inadvertently expanded the potential impact of breaches. The JLR automotive company, Britain's largest automotive employer, suffered a significant attack that halted production for weeks. British law enforcement concluded that Russian hackers were responsible, and the incident is estimated to have cost the UK economy at least £1.9 billion, potentially making it the most expensive cyber-attack in Britain's history. Other notable attacks in recent years include those on FTSE 100 companies IMI and Smiths Group. In the retail sector, Marks & Spencer, the Co-op, and Harrods also experienced costly breaches. Jonathon Ellison of the National Cyber Security Centre emphasized that cybersecurity is a business-critical priority for all manufacturers. Among manufacturers affected by supply chain attacks, approximately 30% reported delays in customer deliveries or cuts in output. Furthermore, nearly a quarter experienced delays in component and material deliveries or shortages due to these attacks.

Frequently asked questions

According to a survey by MakeUK, 30% of British manufacturers experienced a cyber-attack in the past 12 months.

The JLR cyber-attack is estimated to have cost the UK economy at least £1.9 billion, primarily due to lost output.

Generative AI systems, some capable of autonomous hacking, have added extra urgency to efforts to upgrade defenses against cyber threats.

About 30% of manufacturers affected by supply chain attacks reported delays in customer deliveries or output cuts, and almost a quarter reported supplier delivery delays or shortages.

What Happens Next

01Manufacturers are urged to strengthen their cyber defenses.
02The NCSC is working to assist organizations in improving their cybersecurity.

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Cadence

How It Developed

A survey by MakeUK found 30% of British manufacturers experienced a cyber-attack in the past 12 months.
These attacks led to lost production time and increased costs for many manufacturers.
Only half of the manufacturers surveyed had a plan in place to respond to a cyber-attack.
The risk of attacks has increased due to more numerous and adept hackers, often state-backed.
Generative AI systems capable of autonomous hacking have added urgency to defense upgrades.
Connected factories, while improving productivity, also increase the scope for harm once systems are breached.
JLR experienced a significant attack that halted production for weeks, costing the UK economy at least £1.9bn.
British law enforcement concluded Russian hackers were behind the JLR attack.

Sources

T1
UK manufacturers face rising hacking risk as survey shows 30% were hit last yearThe Guardian

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