5 IT Compliance Gaps That Threaten Manufacturing Operations

When it comes to IT compliance, manufacturers don’t get a second chance. A single missed requirement can lead to steep penalties, lost contracts, and damage that takes years to recover from. Yet too often, the biggest risks go unnoticed, buried in legacy systems, outdated processes, or vendor relationships that no one’s reviewed in years. 

TL;DR: Manufacturers face rising cyber threats, especially ransomware. Many lack updated IT security, strong access controls, proper network segmentation, reliable backups, and vendor risk management. These gaps put operations, compliance (CMMC, NIST, ISO 27001), and reputation at risk. This blog outlines how to fix them.

 

The threat landscape is escalating fast. Manufacturing IT support services have exploded in recent years, as manufacturing has now ranked as the most targeted industry for ransomware three years running, accounting for 25% of all global attacks.

In early 2025 alone, ransomware incidents in the sector surged by 102%, causing widespread production shutdowns, data theft, and millions in recovery costs. 

Despite this, many small to mid-sized manufacturers are still relying on under-resourced IT teams, unsupported systems, and patchwork solutions to meet growing regulatory requirements like CMMC, NIST, and ISO 27001. 

The result? Critical gaps. Ones that often aren’t discovered until an audit fails, a bid is lost, or a breach brings operations to a halt. 

In this post, we’ll break down five of the most common IT compliance gaps we see inside manufacturing environments, and how to close them before they put your business at risk.

• Compliance Gap #1: Outdated or Incomplete IT Security Policies
• Compliance Gap #2: Weak Access Controls & Missing MFA
• Compliance Gap #3: No Segmentation Between OT and IT Networks
• Compliance Gap #4: Inadequate or Unused Backup & Recovery Plans
• Compliance Gap #5: No Formal Vendor or Third-Party Risk Management 
• Don’t Wait for an Audit,or an Attack,to Find Your Gaps 

IT Compliance Gap #1: Outdated or Incomplete IT Security Policies 

Walk into almost any small or mid-sized manufacturing facility, and you’ll see it: a patchwork of modern systems running alongside machines that haven’t been updated in a decade. CNCs on Windows 7. ERPs no one dares touch. File servers stuffed with sensitive data and no clear protections. 

This kind of tech debt doesn’t just slow you down. This lack of security measures creates glaring compliance risks. 

In many cases, security policies were written years ago and never updated. Others barely exist, because the priority has always been keeping production moving,not staying audit-ready. The result? Gaps in everything from data protection to access controls to incident response, with no paper trail to back you up. 

And without current, actionable policies, you’re wide open to: 

• Phishing attacks that steal credentials and access proprietary data
• Unauthorized users on critical systems or production networks
• Ransomware that halts operations and costs millions to recover

How to Fix It: Build Real-World Policies...and Keep Them Alive 

Update your security policies at least once a year. 

Train your full workforce,including floor staff. 

Create policies for systems you can’t replace (yet). 

IT Compliance Gap #2: Weak Access Controls & Missing MFA 

If your team is still sharing logins to access your ERP, or if critical systems are protected by nothing more than a basic password, your access controls are not just outdated. They are a liability. 

This is one of the most common and dangerous compliance failures we see in manufacturing. Many facilities operate around the clock with lean IT teams and older systems, and access management often gets overlooked as a result. 

In 2024, nearly half of industrial cyberattacks were tied to stolen or compromised credentials. Many of those came from phishing emails or credentials purchased on the dark web. And if your business is pursuing government contracts, CMMC compliance makes strong access controls and MFA mandatory. 

Here’s what weak access controls really mean: 

• Shared logins eliminate accountability and audit trails
• No MFA creates a direct path for attackers to breach systems
• Excess access gives too many people entry to systems they don’t need 

How to Fix It: Control Access and Prove Accountability 

Implement role-based access control (RBAC). 

Enforce MFA across your environment. 

Eliminate shared credentials. 

Require individual logins for everyone, including shift workers. It takes more setup up front but is essential for compliance, visibility, and breach containment. 

RELATED READING: CMMC 2.0 Compliance For DoD Contractors 

IT Compliance Risk #3: No Segmentation Between OT and IT Networks 

Most manufacturing environments weren’t built with cybersecurity in mind. CNC machines, PLCs, and other production systems were designed for uptime and precision, not to defend against ransomware. 

The problem is many of these machines are still connected to the same network as your office systems. That means if someone clicks a malicious link on a front office computer, an attacker could gain access to production systems in minutes. 

We’ve seen it happen. One manufacturer had an old Windows 7-based CNC machine sitting on the same network as their email server. A single phishing attack took down the entire production line. 

If you're aiming for CMMC or NIST compliance, this kind of network setup is a red flag. Without segmentation, you're not just vulnerable. You're already out of bounds. 

Here’s what poor segmentation puts at risk: 

• Attackers can move laterally from IT to OT systems
• Production equipment can be compromised remotely 
• Compliance frameworks like NIST 800-82 and CMMC are violated
  

How to Fix It: Create Clear Boundaries Between IT and OT 

Segment your OT network from your IT systems. 

Remove internet access from legacy machines. 

Document your segmentation strategy. 

IT Compliance Risk #4: Inadequate or Unused Backup & Recovery Plans 

Most manufacturers assume their backups are good enough,until they aren’t. Whether it’s ransomware, hardware failure, or accidental deletion, an outdated or poorly tested backup plan can bring production to a standstill. 

In 2024, the average cost of a data breach in the manufacturing sector hit $105,000 for small businesses. Worse, the average time to identify and contain the breach was 277 days. That’s nearly nine months of exposure, risk, and potential compliance violations. 

Many manufacturers still rely on local backups stored on the same network as their primary systems. That’s a recipe for disaster. We’ve worked with businesses that lost access to both their data and their backups during an attack because everything lived on the same network. 

Here’s what happens when your backup strategy falls short: 

• Ransomware can encrypt both your systems and your backups
• Backups fail during recovery because they were never tested
• You fall short of compliance requirements for resilience and recoverability 

How to Fix It: Make Backup and Recovery a Business Priority 

Use offsite and cloud-based backups with immutable storage. 

Segment your backup infrastructure. 

Test your disaster recovery plan regularly. 

IT Compliance Risk #5: No Formal Vendor or Third-Party Risk Management 

You might be locking down your own systems,but what about the vendors who have access to them? From ERP providers to equipment suppliers to outsourced IT support, third parties can introduce major vulnerabilities into your environment. 

Too many manufacturers operate without a formal process to evaluate or monitor vendor security. We’ve seen IT providers that never implemented MFA, and ERP vendors with full system access and no audit trail. If you’re in the government contracting space, this lack of oversight doesn’t just increase your risk. It can directly impact your SPRS score and your ability to win or retain contracts. 

Here’s what’s at stake: 

• Vendors with weak security can serve as entry points for attackers
• No vetting means no visibility into who is putting your data at risk
• Supply chain security is now a required part of CMMC compliance

How to Fix It: Make Vendor Risk Part of Your Security Strategy 

Create a formal vendor risk management process. 

Review contracts and remove unnecessary access. 

Bring your IT provider into vendor conversations. 

Don’t Wait for an Audit or Attack to Find Your IT Regulatory Compliance Gaps 

If you’re like most small to mid-sized manufacturers, you’re balancing tight production schedules, aging infrastructure, and evolving compliance demands,often without the internal bandwidth to keep up. 

But compliance isn’t just about ticking boxes. It’s about safeguarding your contracts, protecting your operations, and staying competitive in a high-risk landscape. 

From unsecured CNC machines to missing MFA and unmonitored vendor access, these five gaps are more common than you think,and they can quietly put your entire business at risk. 

Ready to See Where You Stand?

If you're unsure whether your IT systems and vendor relationships can stand up to a compliance audit,or you're navigating requirements like CMMC, NIST, or ISO 27001, our team is here to help. Let’s identify your hidden risks before they impact your bottom line!