Manufacturing is now the most targeted industry for cyberattacks globally, accounting for over 25% of all incidents, according to IBM’s X-Force Threat Intelligence Index. As manufacturers modernize their IT and connect production systems, the risk centers on uptime, safety, and revenue.
Competitive pressure, supply chain volatility, and rising cybersecurity threats are forcing change across the manufacturing industry. Yet progress remains slow.
Leaders often underestimate how complex modernization becomes in operational environments. What looks like a standard IT initiative quickly becomes high-risk when production lines, legacy systems, and uptime requirements are involved.
This article explains why IT modernization in manufacturing is so complex, what manufacturers often overlook, and why the right IT partner becomes essential for avoiding downtime, overspend, and unnecessary risk.
Key takeaways
- Map IT and OT dependencies before modernization to prevent hidden failures that trigger downtime on production lines.
- Prioritize visibility into assets, data flows, and integrations to eliminate blind spots that stall modernization decisions.
- Align modernization initiatives with uptime, compliance, and supply chain resilience rather than isolated technology upgrades.
- Sequence changes around production realities using staged testing and rollback plans to reduce operational risk.
- Partner with manufacturing-focused IT experts to modernize faster, control risk, and protect throughput during change.
Why IT Modernization in Manufacturing Is So Difficult
Aging OT systems complicate every upgrade
Most manufacturing operations still rely on PLCs, HMIs, and SCADA systems deployed years or even decades ago. These legacy systems run critical manufacturing operations and support robotics, quality control, and automation on the plant floor.
Many of these systems rely on proprietary protocols, outdated firmware, or vendor-specific configurations that cannot be easily patched or upgraded. In some cases, there is no supported upgrade path.
When IT systems, such as ERP or MES, are updated, those changes can unintentionally disrupt OT dependencies. A database change or authentication update may interrupt real-time data flows between machines and higher-level applications. This makes modernization inherently risky.
Uptime requirements leave almost no room for IT change
Manufacturing environments are built around uptime. Scheduled downtime windows are short, infrequent, and tightly coordinated across maintenance, safety, and production teams.
Even a minor IT update can halt production if it affects connectivity, access controls, or system performance.
In fact, 41% of enterprises say one hour of downtime now costs between $1 million and over $5 million, according to ITIC’s 2024 Hourly Cost of Downtime Report.
These disruptions are costly and challenging to recover from once production lines stop.
As a result, IT modernization must be planned with surgical precision. Testing, staging, and rollback procedures are not optional. Without them, modernization initiatives quickly lose support from manufacturing leaders.
Modern tools don’t integrate cleanly into older architectures
Most plants operate across a complex stack: ERP to MES to OT systems, then into cloud-based analytics, IoT platforms, and reporting tools. Each layer depends on the next.
Modern tools promise improved decision-making, real-time visibility, and operational efficiency. But introducing them into older architectures often exposes brittle integrations. One upgrade can break five downstream connections.
Manufacturers rarely see these risks upfront, which is why modernization efforts frequently exceed timelines and budgets.
The Invisible Technical Debt Holding Manufacturers Back
End-of-life systems everywhere
Unsupported servers, outdated Windows versions, and deprecated databases are shared across manufacturing environments. These systems quietly increase cybersecurity risk while also blocking modernization.
New platforms often require supported operating systems and databases. When legacy systems remain in place, modernization stalls or becomes far more expensive than expected.
Identifying and prioritizing these systems is critical to future-proof modernization efforts.
Unknown assets and undocumented integrations
Over decades, manufacturers accumulate “shadow OT.” Custom vendor integrations, undocumented interfaces, and one-off appliances are added to solve immediate problems.
When staff retire or vendors change, knowledge gaps appear. MES connections to ERP, SCADA exports, and custom workflows may exist without documentation.
Without visibility into these assets, manufacturers cannot modernize safely or predict how upgrades will affect production.
Data fragmentation across the entire factory
MES, ERP, SCADA, and IoT tools all capture data differently. Formats, timestamps, and ownership vary across systems.
Modernization requires unified data to support forecasting, supply chain coordination, and informed decisions. Most factories lack this foundation.
Until data silos are addressed, digital transformation efforts struggle to deliver real value.
The Human Side: Skills Gaps Slow Every Modernization Attempt
IT teams rarely understand OT systems
IT teams are trained in networking, cloud-based platforms, and cybersecurity. They are not typically trained on PLCs, industrial protocols, or safety-focused operational technology.
This gap creates risk when modernization touches the plant floor.
OT teams rarely understand IT modernization
OT teams prioritize uptime, physical safety, and equipment reliability. Interoperability, data integration, and scalable architectures are not their focus.
This disconnect slows modernization and increases friction between teams.
Workforce constraints compound the issue, with the Manufacturing Institute projecting that 3.8 million manufacturing jobs will be needed by 2033 and nearly 1.9 million at risk of going unfilled.
There’s no time for modernization
Internal teams are overwhelmed with maintaining day-to-day operations. Fires take priority over long-term initiatives.
That lack of capacity is widespread, as 61% of small and mid-sized manufacturers cite workforce operations as their biggest smart manufacturing challenge, according to Auburn University research.
Result: Modernization becomes a patchwork of disconnected, one-off upgrades rather than a strategic roadmap.
Cybersecurity Barriers Manufacturers Can’t Ignore
Legacy OT systems were never designed for internet-connected environments
Many OT systems lack MFA, encryption, segmentation, or basic logging. They were never intended to operate in connected environments.
As connectivity increases, these weaknesses become serious risks.
The scale of that risk is clear, with over $16 billion in losses reported from internet-enabled crime in 2024, according to the FBI’s Internet Crime Complaint Center.
Every modernization step widens the attack surface
More devices, more data, and more connectivity introduce more risk. IoT, cloud-based tools, and AI-powered platforms all expand exposure.
Without strong cybersecurity controls, modernization increases vulnerability instead of resilience.
ENISA’s 2024 Threat Landscape, which analyzed several thousand publicly reported incidents, identifies availability disruption and ransomware as leading threats impacting operations.
Compliance frameworks add pressure
Frameworks such as CMMC, NIST 800-171, and ISO 27001 raise expectations for manufacturers. Modernization often exposes previously hidden compliance gaps.
Addressing security early prevents costly rework later.
Vendor Complexity Makes Modernization Even Harder
Conflicting vendor recommendations
ERP vendors, MES providers, cloud platforms, and OT vendors often give conflicting guidance. One advises rapid upgrades, another says “do not change anything.”
Manufacturers are left reconciling these recommendations without a clear path forward.
Proprietary ecosystems limit flexibility
Many manufacturing technologies lock organizations into proprietary ecosystems. These limit scalability and slow the adoption of new technologies.
Over time, this rigidity undermines modernization efforts.
Vendor timelines don’t match manufacturing realities
OT upgrades may be performed only during annual shutdowns. IT updates occur monthly or weekly.
Coordinating these timelines across vendors is extremely difficult without centralized planning.
Why Manufacturers Need an IT Partner for Modernization (And What Happens Without One)
Modernization touches systems most internal teams have never updated before
ERP, MES, OT, cloud platforms, and cybersecurity overlap in complex ways across modern manufacturing environments. Most internal teams have deep expertise in one area but not across all these functions simultaneously.
An experienced partner helps streamline modernization initiatives, align systems with real business needs, and apply proven use cases that reduce inefficiencies rather than introduce new bottlenecks.
An MSP reduces downtime risk during modernization
Improperly executed upgrades can halt production for hours or days, especially when legacy systems and on-premises infrastructure are involved. This risk increases as manufacturers introduce Internet of Things connectivity, automation, and innovative manufacturing tools.
Experienced partners understand staging, testing, rollback pathways, and OT sensitivities. That discipline helps optimize change windows, support predictive maintenance efforts, and prevent costly disruptions.
A partner provides visibility manufacturers typically don’t have
Asset inventories, network mapping, vulnerability exposure, and dependency tracking are essential for safe modernization. Many manufacturing companies lack this visibility due to decades of undocumented changes.
A partner uncovers hidden assets, data bottlenecks, and integration gaps, enabling stakeholders to make informed decisions and prioritize modernization efforts that deliver cost savings and operational efficiency.
A partner ensures modernization aligns with long-term business goals
Scaling production, adding new facilities, improving supply chain resilience, and meeting compliance requirements all depend on coordinated modernization.
Internal teams often modernize reactively. Partners modernize strategically, helping manufacturing leaders align technology investments with competitive advantage, future-ready growth, and evolving business needs.
What happens without a partner
Failed ERP migrations, broken MES integrations, ransomware exposure, and extended downtime are common outcomes. These disruptions ripple into procurement delays, missed shipments, and lost customer trust.
For many organizations in the manufacturing sector, hundreds of thousands of dollars in cost savings are lost to poor planning, rework, and stalled digital transformation.
Why Keystone Is Uniquely Positioned to Support Manufacturing Modernization
25+ years specializing in manufacturing IT environments
Keystone has supported manufacturing operations across diverse production models, from highly automated facilities to hybrid environments, balancing legacy systems and new technologies.
This experience helps manufacturing leaders modernize with confidence rather than through trial and error.
Teams who understand ERP, MES, SCADA, ICS, and cloud
Keystone teams understand how ERP, MES, SCADA, ICS, and cloud-based platforms interact in real-world manufacturing use cases. This includes hybrid architectures that combine on-premises systems with Microsoft cloud services.
That domain overlap allows Keystone to design scalable architectures that support artificial intelligence, analytics, and automation without destabilizing production.
Proven track record of modernization without downtime
Keystone plans modernization around production calendars, maintenance cycles, and safety constraints. Projects are sequenced to minimize risk while supporting advancements such as robotics and predictive maintenance.
This approach helps manufacturing companies modernize while protecting uptime and throughput.
Cybersecurity-first methodology aligned with NIST and CMMC
Cybersecurity is embedded in modernization from the start, not added later. Architectures are designed to protect data, devices, and workflows as connectivity expands.
This approach supports compliance while enabling innovative manufacturing initiatives to scale securely.
Local, dedicated support teams
Manufacturing modernization requires hands-on engagement. Keystone’s local teams work directly with plant personnel, IT leaders, and other stakeholders.
That partnership model helps streamline execution, address real-world constraints, and keep modernization aligned with both operational and strategic goals.
Final Thoughts: Modernization Isn’t a Technology Project, It’s a Business Transformation
Manufacturing IT modernization is complex because it spans people, processes, machines, data, and cybersecurity. It is not just about upgrades or new tools.
The companies that succeed do not do it alone. They partner with experts who understand both IT and OT realities.
Manufacturers planning modernization in 2025–2026 often start with a readiness assessment. Keystone can help you understand risks, timelines, and what to prioritize next.
FAQs
What makes IT modernization in manufacturing so risky from a cybersecurity perspective?
IT modernization in manufacturing is risky because legacy OT systems were never designed for internet-connected environments. Connecting ERP, MES, and OT expands the attack surface without built-in security controls. Manufacturers should prioritize segmentation, asset visibility, and security testing before enabling new connectivity.
How can manufacturers modernize IT systems without causing downtime?
Manufacturers reduce downtime during IT modernization by sequencing changes around production schedules and testing updates in staged environments first. This includes dependency mapping, rollback plans, and validating changes against OT constraints. Working with an MSP experienced in manufacturing environments significantly lowers disruption risk.
When should manufacturers partner with an MSP for IT modernization?
Manufacturers should partner with an MSP when modernization spans ERP, MES, OT, cloud, and cybersecurity simultaneously. Internal teams rarely have cross-domain expertise to manage these dependencies safely. A manufacturing-focused MSP provides visibility, risk reduction, and execution discipline that internal teams typically lack.
