The Cost of Cybersecurity vs. the Cost of Downtime in Manufacturing

An abridged version of this article will appear in the October 2026 issue of MiMfg Magazine. Read the full issue and find past issues online.

Every manufacturing leader eventually faces the same budget question. Cybersecurity shows up as a recurring line item with a clear price tag, while downtime is a risk that may or may not happen. It is tempting to treat security spending as a cost to minimize and downtime as a problem to deal with if it ever arrives.

The latest industry data tells a different story. When you put the numbers side by side, the comparison between what manufacturers spend on cybersecurity and what they lose to downtime is not close. This article breaks down both sides of that equation, what downtime actually costs when production stops, what a cyber incident adds on top of it, and how to think about security spending as a decision about uptime rather than an IT expense.

A cyberattack doesn’t just cause downtime. It can cost clients, contracts and your reputation.

Understand the Cost of Manufacturing Downtime

Manufacturing depends on connected systems, including production equipment, ERP platforms, plant networks, inventory tools and supplier systems. When one becomes unavailable, production can slow or stop, shipments can fall behind and recovery costs can quickly grow.

Research by Aberdeen Strategy and Research found that a typical manufacturing business loses about $260,000 for every hour of unplanned downtime. While the actual cost will vary between manufacturers, the figure shows how quickly even a short interruption can become a major financial issue.

Furthermore, downtime rarely affects production alone. Delayed orders can affect customer commitments, employees may be unable to complete their work, suppliers may need to adjust schedules and manufacturers may face overtime or expedited shipping costs after systems return.

This is why the true cost of downtime needs to be viewed across the entire business, not only at the production line.

Consider What a Cyber Incident Adds

A cybersecurity incident can create an even more complicated disruption. Restoring systems is only part of the response because the organization also needs to understand how an attacker entered, which systems were affected, whether access remains active and whether sensitive information was compromised.

According to IBM, it takes an average of 204 days to detect a breach and a further 73 days to contain it. The question then is for manufacturers: how much of this disruption can your business take?

This statistic does not mean a manufacturer will be completely offline for that entire period. They demonstrate how long a security incident can remain active within an organization and why early detection, monitoring and containment are so important.

Moreover, cyber incidents can create costs beyond downtime itself. Manufacturers may need security specialists, data restoration, credential resets, legal support, customer communication and additional recovery resources while already managing an operational interruption.

Manufacturing is Becoming More Dependent on Technology

The technology used across manufacturing continues to grow. Automation, connected equipment, cloud applications, remote access, operational technology and artificial intelligence are becoming increasingly important to production and business operations.

More than half of manufacturers already use AI, and 80 percent say it will be essential to grow or maintain their business by 2030, according to the National Association of Manufacturers.

That increased reliance on technology can create major opportunities but it also makes cybersecurity more closely connected to uptime. When more production processes depend on digital systems, interruptions to those systems can have a greater operational impact.

Furthermore, security needs to be considered when new technologies are introduced. Access controls, monitoring, backup, data protection and recovery should be part of the planning process rather than something addressed after implementation.

Where Cybersecurity Spending Can Protect Uptime

Cybersecurity spending should not simply mean adding more tools. Manufacturers should identify the systems that would create the greatest disruption if they became unavailable and prioritize protection around those systems.

Firstly, manufacturers need visibility into suspicious activity so incidents can be identified sooner. Continuous monitoring can help teams recognize unusual account activity, malicious software and unexpected network behavior before a problem spreads.

Secondly, access to critical systems should be controlled carefully. Employees, vendors, contractors and equipment providers may all require access but permissions should be limited to what each person or system actually needs.

Lastly, recovery needs to be part of the cybersecurity budget. Secure backups, tested recovery processes, clear responsibilities and an incident response plan can help reduce the amount of time critical systems remain unavailable.

Cybersecurity, disaster recovery and business continuity should therefore work together. The objective is not only to prevent an incident, but also to reduce its impact and restore operations safely when disruption occurs.

Final Thoughts

Cybersecurity has a visible cost because manufacturers can see exactly what they spend on it. Downtime can be easier to underestimate because the expense remains hidden until production stops.

With manufacturing downtime estimated at approximately $260,000 per hour, breaches taking an average of 204 days to identify, and technology becoming more deeply connected to production, cybersecurity needs to be considered as part of operational planning.

Cybersecurity Awareness Month is a good opportunity to review that calculation. Instead of asking only how much cybersecurity costs, manufacturers should also ask what it would cost if critical systems became unavailable and whether the business is prepared to recover quickly when that happens.

About the Author

John Stephensis Chief Information Security Officer at Convergence Networks, bringing over 20 years of experience in cybersecurity, penetration testing, compliance and IT security leadership. He may be reached at _____.

Convergence Networks is an MMA Premium Associate Member and has been an MMA member company since June 2016. Visit online: convergencenetworks.com.