Manufacturers are facing growing pressure in light of the new Cybersecurity Maturity Model Certification (CMMC) regulatory compliance requirements for organizations that handle sensitive federal information.
While some manufacturers were already required to meet NIST 800-171 cybersecurity requirements, CMMC 2.0 introduces a new system of checks and balances to help strengthen the Department of Defense (DoD) supply chain.
The new federal regulation, which went into effect in December 2024, establishes a new, system of compliance and assessment standards at three different levels.
Under the new system, contractors that handle federal contract information (FCI) and controlled unclassified information (CUI) and their subcontractors that the data flows down to must implement the required cybersecurity controls and undergo an assessment for their designated level.
Language for CMMC 2.0 has already started showing up in contracts.
In this article, we’ll explore why manufacturers are under the microscope for CMMC compliance. We’ll provide steps you can take now to get compliant, and we’ll also outline ways managed IT can help you navigate the complex security mandates.
With this information, you’ll be able to jumpstart your compliance efforts to make sure you can continue doing business with the DoD and grow your manufacturing business.
Cybersecurity companies are facing growing compliance pressures for several reasons. Some of the top reasons are listed below.
Manufacturers remain a top target of threat actors because of their valuable data, extensive supply chain, aging IT equipment, and often inadequate cybersecurity guardrails.
These and other factors have led a steady rise in cyber incidents involving industrial organizations of all sizes.
According to the Center for American Progress, ransomware attacks on industrial businesses jumped 87 percent last year, led by the manufacturing sector.
Data breaches cost industrial organizations an average of $5.56 million per breach, up from $4.73 million in 2023, according to IBM’s 2024 Cost of a Data Breach report. Those breaches led to significant or critical disruptions for 70 percent of affected manufacturing companies.
A shortage of qualified cybersecurity professionals has put many manufacturers with little or nonexistent in-house cybersecurity staff in a difficult situation.
Related Article: How The Cybersecurity Staffing Shortage Can Put Your Business At Risk
Without sufficient internal expertise, manufacturers may not know which security measures are acceptable to satisfy each CMMC security requirement for their level. Businesses at CMMC Level 2 must meet the requirements outlined in NIST 800-171.
In addition, while a select few will be able to perform a self-assessment every three years, most will be required to get audited by a certified third-party assessor organization (C3PAO).
Failing to get compliant and pass your CMMC audit could hurt your relationship with the DoD, and even jeopardize your existing contracts or eligibility to win new ones.
Without an in-house cybersecurity expert with an-depth knowledge of the regulatory requirements, some manufacturers within the Defense Industrial Base (DIB) may be struggling to understand the complex security and assessment requirements outlined in CMMC 2.0.
For instance, some businesses may be unclear about CUI markings and where to find CUI within their environment in order to properly scope their CUI boundary. Still others may be unsure which specific security measures would be considered acceptable to third-party auditors as proof of compliance.
Without a compliance readiness plan, these and other uncertainties could result in inadvertent mistakes and missed security flaws, leading to a failed audit.
The new requirements are intended to give the federal government assurance that contractors and subcontractors doing business with the DoD have implemented the necessary security controls to safeguard the FCI and CUI they store, process, and transmit.
Many manufacturers within the industrial industry, however, have not implemented robust security measures to limit cyber risks.
Related Article: How Zero Trust Can Streamline NIST & CMMC Compliance For Your Business
For instance, manufacturers often have aging hardware and software. In an effort to cut costs, businesses may have put off investing in new technology.
In doing so, this has increased the chances of a cyber incident since those devices and software programs are no longer being supported by the manufacturer with technical support or critical security patches.
In addition, the government has been actively going after contractors and organizations found to be not in compliance with NIST and CMMC under the U.S. Department of Justice’s Civil Cyber-Fraud Initiative (CFI) and through lawsuits filed under the False Claims Act.
In one example, the government settled its lawsuit against Cambridge, Mass.-based MORSE Corporation, Inc. for $4.6 million.
In the settlement, announced in March of this year, the defense contractor admitted to knowingly misrepresenting its cybersecurity posture, failing to meet NIST 800-171 controls, and not having a documented cybersecurity plan, among other violations.
Other organizations have also been hit with significant fines and penalties for not meeting the cybersecurity requirements outlined in the DoD contracts. In addition, the government can seek treble damages, forcing noncompliant organizations to pay triple the government’s costs.
Small and medium-sized manufacturers also often face limited access to capital and tight budgets, making it difficult to undertake costly capital infrastructure upgrades and implement necessary physical security and cybersecurity controls.
Also, steadily rising costs for basic business necessities like overhead, parts, labor, insurance, and shipping have also hampered many organizations’ ability to take proactive measures to strengthen their security defenses.
Using a managed IT service provider with a cybersecurity expert can significantly streamline your compliance process, helping ensure that nothing gets overlooked and that you can pass your assessment and get CMMC certified.
Using a qualified MSP can provide a strategic readiness roadmap toward CMMC compliance.
The right provider can help you:
Related Article: CMMC Step 4: SSP Documentation–What’s Your CMMC Compliance Evidence?
Don’t let compliance confusion, other priorities, or a lack of internal expertise cause your compliance efforts to stall.
As a small or medium-sized manufacturer, your DoD contract is critical to your organization’s future. Don’t risk your relationship with the DoD by waiting until the last minute and achieve CMMC certification.
A knowledgeable, experienced managed IT partner can provide a customized CMMC readiness roadmap so that you can get compliant, pass your assessment, and keep or win DoD contracts.