Cybersecurity continues to be a top challenge for manufacturers running industrial facilities, but IT/OT collaboration can improve cybersecurity. Despite this, only 19% of firms have collaborative IT/OT teams. Currently, cybersecurity and AI top the charts of planned investments for the next one to two years, according to Cisco’s 2024 State of Industrial Networking Report for Manufacturing.
About the 2024 State of Industrial Networking Report for Manufacturing
Cisco, along with Sapio Research, commissioned the study to discover the highest business and technical priorities for industrial networks today. The report, which provides insights from 739 industry professionals from management to the C-suite, reveals how manufacturing companies are overcoming challenges, where the opportunities lie and how to align resources with success.
Overcoming challenges in manufacturing
Section 1 of the “2024 State of Industrial Networking Report for Manufacturing” provides a comprehensive overview of the current landscape in the manufacturing sector, focusing on obstacles to growth and the strategies firms are employing to overcome these challenges. The report names inflation as the primary external barrier to growth, particularly pronounced in North America, where 55% of respondents cite it as a significant issue. Other external factors include a shortage of skilled workers (40%) and cybersecurity risks (37%). Internally, organizations face difficulties in efficiently deploying new technologies (36%), defending against cyber threats (34%) and retaining employees (33%).
To address these internal challenges, manufacturers are increasingly investing in upskilling their workforce (42%) and adopting AI technologies (39%). Additionally, collaboration between IT and OT teams is being emphasized, with 35% of firms increasing efforts in this area to enhance efficiency and security. Despite these initiatives, only 19% of companies have collaborative IT/OT teams making decisions about industrial infrastructure, indicating substantial room for improvement. Investment priorities within the sector are shifting towards operational technology (OT), with 86% of firms maintaining or increasing their OT expenditure.
Key drivers for this investment include improving efficiency (35%), increasing production (32%), enhancing cybersecurity (25%) and achieving cost savings (25%). Notably, AI-enabled devices (31%) and cybersecurity solutions (30%) are highlighted as the top investment areas, reflecting a growing recognition of the importance of advanced technologies in bolstering manufacturing capabilities. While manufacturing firms are grappling with significant external and internal challenges, they are actively seeking solutions through technological investments, workforce development and enhanced collaboration between IT and OT teams.
The emphasis on AI and cybersecurity reflects a strategic pivot towards modernizing infrastructure to ensure resilience and competitiveness in an evolving industrial landscape.
Download the report
The 24-page report details a growing urgency for IT/OT collaboration, how network infrastructure is being refreshed to benefit from AI-powered efficiencies, and how firms are investing in cybersecurity solutions to protect increasingly connected infrastructure and smart factories. Download the full report to learn more.
