Enews April 2023 Archives » Page 2 of 2

By Lauren Middleton, content writer and web designer, River Valley Digital

Industry 4.0 has significantly transformed the manufacturing industry. Manufacturing companies that integrate Industry 4.0 or “Smart Factory” experience better efficiency, improved data insights, better quality control, reduced labor and reductions in cost. However, the associated interconnectedness comes with a cost.

Smart Factory environments have experienced a significant increase in cyberattacks. According to Statista, manufacturing accounted for 23% of cyberattacks in 2021 alone. In fact, manufacturing knocked down the financial services industry from being the most attacked industry by ransomware in 2021. The average loss from a major cyber breach was $1.7 million.

Additional costs also arise related to customer service disruptions, productivity losses and compliance fines. Surprisingly, despite the existential risk to the business, many manufacturers still believe that “this will never happen to my company.” Recovery from a cyber-crime event may not be possible, so what are some of the solutions to the problem? A proven solution is cooperation with a managed service provider.

A managed service provider (MSP) is a third-party company that in cooperation with a company’s internal IT staff remotely co-manages all facets of the corporate information technology infrastructure, OT and IT, including data networks of all devices, office and plant. These services include 24/7 systems management, monitoring and comprehensive security.

Cyberattack risks

The biggest cyber threats to manufacturers originate from ransomware via phishing attacks or other security impairments. Such attacks are malicious and can cause loss of revenue, business downtime and money extortion. Ransomware is the most common type of malware. It allows a hacker to access and cripple computer systems, and keeps systems inoperable and data inaccessible until the affected company pays a ransom.

Chris Scallan, converting superintendent at Delmarva Corrugated Packaging (Dover, Delaware) said cyberattacks are a significant concern in its Delaware facility, and the company has partnered with an IT-managed services provider. “It is a very large concern to make sure attacks do not happen and that the provider makes sure it does not happen,” he said. “And knock-on-wood, since being at the new manufacturing facility in Delaware, there have been no issues.”

The main reasons manufacturers are targeted for cyberattacks frequently are related to their high-value data and significant revenue basis. Hackers know that they have great leverage because the attack can cause extensive damage and the manufacturer has the revenue to pay for the ransom.

Phishing

Chris Scallan, converting superintendent at Delmarva, said cyberattacks are a significant concern in its Delaware facility.

Phishing often is the means of the cyberattack: The attacker disguises themselves as a legitimate source to convince the target. In most cases, a malware or ransomware attack needs the victim to click a link or download an email attachment. So, attackers often embed malware or ransomware code into a phishing email. An unsuspecting, unfamiliar and not sufficiently trained workforce is the most common reason manufacturing facilities fall victim to phishing attacks.

Roughly 26% of manufacturers report that employee errors and omissions are one of the biggest cyber threats faced. Common threats that stem from employee error are falling for phishing attacks, incorrect use of company data on mobile devices, direct abuse of IT systems and machine errors. Manufacturers need to create organization-wide cybersecurity policies and protocols. Managed services providers are ideally positioned to provide guidance in creating these security systems, helping to implement and monitor them.

Remote work

The increase of a remote workforce has led to a significant rise of cybercrime incidences in the manufacturing sector. The main threat to OT systems (plant operational technology) occurred through employees who have had direct access to OT networks while working remotely. The need for remote direct online access to production automation equipment increased suddenly with the arrival of the pandemic.

Not only employees have required this access, but vendors of automation machinery also needed to remote in as travel was restricted or outright not possible. Digital transformation on the factory floor has allowed once isolated operational technology networks to be connected with the rest of the devices of the company’s IT infrastructure. Scallan explained the advantages of having interconnected machines: “Anytime there’s an issue with one of the machines, an employee is able to call the vendor and the vendor can dial into the machine and troubleshoot directly with the employee and that makes it a lot easier than trying to speak over the phone.” Yet this infrastructure requires a whole new network and security configurations with around-the-clock monitoring as threats can surface indiscriminately at any time.

ERP systems

Environmental resource planning systems (ERP systems) are one of the top targets for cyberattacks. ERP systems contain company financial data and other sensitive information that is valuable to hackers. When this data becomes compromised, the factory’s critical infrastructure is in danger of shutting down. It is crucial for manufacturers to have cybersecurity measures in place for all ERP systems.

“The company has two ERP systems, two of them working in conjunction. One is further along than the other – it is a special system for the industry – and it is cloud-based,” explained Scallan. “Nothing is local here in Delaware. Instead, the provider takes care of it offsite. If anything happens within the building, the cloud-based disaster recovery kicks in, and the system can be run from anywhere.”

Mergers and acquisitions

Manufacturing experienced a revival after the pandemic slowed down and with it came several mergers and acquisitions. With more mergers and acquisitions occurring, comes the need for M&A cybersecurity strategy and due diligence. Cybersecurity due diligence is especially important in the context of M&A because all parties involved in it must have strong security protocols in place.

Following an acquisition, plant machinery will likely become interconnected at different plant sites. Before an acquisition takes place M&A due diligence assessments should include all its network systems and digital assets. Overlooking and underestimating cyber risks leaves a facility open to potential cyber incidents. There were cases where these risks had gone unnoticed for several years after the merger and acquisition had been completed. These incidents are reported to have cost organizations millions of dollars.

Cyber due diligence

Cyber due diligence involves the following:

Leadership support for cybersecurity due diligence;
data mapping;
quick assessment of cybersecurity practices; and
a risk scoring tool that identifies and prioritizes risks.

By understanding all of the sources of data in an organization, how the data is collected and where the risks of unauthorized access may be, an organization has taken the first step in understanding how to protect itself from cyberattacks.

Organizational leadership must not rely on an IT individual or small team who may be preoccupied with ensuring daily operational technology works properly. Instead, identify the risk, prioritize the needs of the organization and then develop a plan to address those needs … before ransomware halts activity on the production floor.

Tekscape, Inc. is an industry leader in advanced and tailored IT technology solutions. Its mission is to provide a result-driven and business-minded approach to technology services with ease and agility. Tekscape specializes in designing, implementing and managing solutions to help companies in their digital transformation path, enabling effective infrastructure solutions, workforce productivity and implementing a comprehensive cybersecurity strategy.

Lauren Middleton’s firm, River Valley Digital, specializes in working with managed service providers and manufacturers all over the United States.

More information: www.tekscape.com/manufacturing

By Cara Bommarito, sustainability manager, RadTech – UV+EB Technology Nonprofit Association

The ABCs are the building blocks of literacy. They are the most elementary principles to understanding language. Once readers have learned this concept, they gradually move on to reading, writing and grammar. This is an ever-evolving process, which continues to deepen over time. With practices and dedication, humans can take the ABCs and read 1,000-page novels or, better yet, write one of their own. The idea of ABCs also can be an analogy into sustainability.

Most people know the ABCs of sustainability as the 3Ps – or the triple bottom line. There are many variations on this, but the message is people, planet, profit. The concept is more complex and has varying approaches. It is user specific, unlike the ABCs, where A only can mean A sounds. The ABCs of sustainability can be interpreted in vastly different ways. This means sustainability can look different depending on the industry or even the person.

What are the ABCs of sustainability in the energy-curable industry? The best place to find this answer is through RadTech – a nonprofit trade association dedicated to the advancement of the energy-curable industry, which dedicates time and resources to authentically understand which sustainability principles to prioritize. For those who are unfamiliar, UV/EB and LED curing is a means for coatings, inks, adhesives, composites and other materials to be cured (dried). A wide range of industries use energy-curable technologies, including printing and packaging, aerospace and defense, automotive, collision repair and refinish, composites, electronics, metal finishing, medical devices, plastics, wood finishing, building products and 3D printing/additive manufacturing. With such a variety of industries, it is important that RadTech’s sustainability ABCs align with the industry and end users. The ABCs of sustainability for the energy-curable industry are: A – energy conservation, B – reducing greenhouse gas (GHG) emissions and C – encouraging a circular economy. UV/EB and LED have additional sustainability benefits, but this article only will focus on the above three as the foundation. While these sustainability items are the focus in the energy-curable industry, the technology also is a solution energy-curable technology creates for its users. It is an interesting paradigm. It is not only the goals, but also the solutions in at least two of the categories.

A – Energy conservation

The A of the ABCs is energy conservation. At the moment, there is a global energy crisis, particularly in Europe. Energy costs are soaring, and energy no longer is affordable and reliable. Now, more than ever, it is important to find innovative solutions to help conserve energy. How does UV/EB and LED help conserve energy? Almost all conventional methods where an oven is required for curing use about 50% more energy than energy-curable processes. Energy-curable technology eliminates the oven and replaces it with a curing lamp, which draws less energy. A real-world example can be found in the textile industry. When using UV, up to 75% of energy can be saved in comparison to classic thermal drying. UV curing is applied at room temperature, so thermal-sensitive materials can be used.¹ Energy reduction can be found across all industries, which have chosen to implement energy-curable processes into production facilities. It is an important solution that has potential for even more energy savings. This is why it is the first letter in the sustainability priorities.

B – Reducing greenhouse gases

Next is B, reducing greenhouse gases and other harmful emissions. GHGs are attributed to climate change, making this is a global problem. Energy-curable technology can help reduce the GHG emissions in some industries. One example of the savings that already have been achieved using the technology is a major industry study of a UV can-coating process line, which found an over 65% reduction in GHG emissions. The study compared UV curing to a water-borne coating line equipped with incineration. There also was a documented 80% reduction in the total amount of energy used by the facility’s UV can coating process, compared to a conventional thermal system.² Another important factor to consider is the vast reduction in volatile organic compounds (VOC) using energy-curable technology. Instead of using large-molecule polymers, UV/EB and LED use short-chain oligomers. This contributes to the overall curing effects that generate almost 100% solids and low or no VOCs. In many cases, energy-curable technology meets or exceeds the most stringent air quality standards. Air quality and reduction in GHGs are vital to sustainability. The UN sustainable development goals (SDG) list air quality as the following: SDG target 11.6.2, which aims to reduce the environmental impact of cities by improving air quality. The reduction of GHGs is of global importance and therefore is one of the foundations of the sustainable ABCs.

C – Circulatory

The final letter is C for circulatory, which coincidently starts with C. Circulatory is an important building block of sustainability. As defined in article written by Anne Velenturf, fellow in circular economy at the University of Leeds, “A sustainable circular economy involves designing and promoting products that last and that can be reused, repaired and remanufactured. This retains the functional value of products, rather than just recovering the energy or materials they contain and continuously making products anew.”³ The RadTech sustainability committee recently drafted three studies in circularity: two in recyclability and one in compostability. The goal of these studies is to understand whether UV-, EB- and LED-technology inks and adhesives have any effect on the recyclability or compostability of products that use energy-curable technology. It is important to the committee to be authentic in its findings and be forward thinking to ensure energy-curable technology does not negatively impact circularity. The results are not yet published on these studies and should be available in the early part of 2023. This is an important step to understanding energy-curable technology and its impact on circularity and sustainability.

Sustainability is about continuous improvement. The sustainability ABCs of energy-curable technology are impactful and, most importantly, quantifiable. They can be proved and measured so the industry confidently can back up the claims around sustainability. With the ABCs of sustainability, the industry hopefully can take these building blocks and expand further into other important sustainability issues and take the best practices to understanding the fundamentals in sustainability as they pertain to the energy-curable industry.

Cara Bommarito is the sustainability manager at RadTech. RadTech, located in Chevy Chase, Maryland, is a nonprofit serving the UV and EB industry and market. Learn more at www.radtech.org.

Managed Service Providers are Critical to Securing Smart Factory