How zero-trust data exchange protects manufacturing’s private data beyond factory walls

What you’ll learn:

Zero-trust data exchange applies rigorous security controls directly at the data layer.
Vulnerability stems from increasingly complex and globalized supply chains made up of numerous third-party partners.
End-to-end encryption ensures manufacturing data remains encrypted throughout its entire journey.

Manufacturing faces unprecedented cybersecurity challenges in today’s interconnected environment. With proprietary designs, production data, and supply chain information regularly exchanged between manufacturers and their network of third-party partners, traditional security approaches no longer provide adequate protection.

This sensitive intellectual property represents the lifeblood of manufacturers—yet many continue to share critical data through unsecured channels, exposing themselves to significant risks.

The concept of zero-trust data exchange applies rigorous security controls directly at the data layer—ensuring every file transfer, document sharing, and system integration involving sensitive manufacturing information is continuously verified, encrypted, and monitored, regardless of where the data travels. Manufacturing technology people concerned with protecting their company’s most valuable assets, zero-trust security represents a strategic imperative.

Manufacturing supply chains: Prime targets for data theft

Manufacturing companies have become primary targets for cybercriminals seeking to steal intellectual property. According to recent data, manufacturing represented the most targeted sector, with the Department of Homeland Security identifying it as one of 55 national critical functions facing the highest risk of cyberattacks in the U.S.

This vulnerability stems from increasingly complex and globalized supply chains made up of numerous third-party partners who require access to sensitive data while demanding assurances that they can control who sees that information.

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This complexity creates multiple attack vectors, as breaches can originate at any tier of the supply chain. With each additional partner and digital touchpoint, the attack surface expands, creating more opportunities for malicious actors to exploit security weaknesses.

Manufacturing’s susceptibility to cyber threats is further compounded by the sector's critical role in national security and economic stability. As manufacturers increasingly adopt digital technologies to enhance productivity and maintain competitive advantage, the potential impact of successful attacks grows correspondingly.

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The stakes are extraordinarily high when sensitive manufacturing data is compromised. Stolen design specifications, proprietary process documentation, and confidential production data can erode competitive advantage, damage reputation, and result in significant financial losses.

The infamous NotPetya cyberattack serves as a sobering reminder of these risks, having caused billions in financial losses for multinational companies by crippling their operations worldwide.

Persistent risks of unsecured data exchange

Traditional approaches to securing sensitive manufacturing data focus primarily on the network perimeter, assuming anyone inside can be trusted. This outdated security model creates significant vulnerabilities across organizational boundaries.

In typical manufacturing environments, implicit trust is granted once users are authenticated, with broad access permissions lacking granular controls. This approach provides limited visibility into data movement and usage, making dangerous assumptions about the trustworthiness of internal users and partners.

Data protection gaps abound in conventional systems—single layers of encryption, limited audit trails, and reactive threat detection all leave sensitive manufacturing information vulnerable. Static access controls and an inability to verify secure data handling leave organizations with limited control over their data once shared.

These shortcomings translate directly into business risks: data oversharing, unauthorized access, compliance gaps, and data leakage through seemingly legitimate but unmonitored channels.

Zero-trust data exchange: New paradigm for manufacturing?

Zero-trust data exchange transforms how manufacturing organizations protect sensitive information by applying zero-trust principles directly to the data layer. This approach operates on the fundamental principle that no person, device, or system should be inherently trusted—even those within the organization's network.

At its core, zero-trust data exchange enforces a “never trust, always verify” philosophy for every interaction with sensitive manufacturing data. Every data access request—whether from an internal engineer or external supplier—must be authenticated, authorized, and audited.

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Data-centric security independent of network location ensures that security controls travel with the data itself, providing protection wherever information flows—across networks, organizations, and throughout the supply chain. Complete visibility into all data interactions enables security teams to detect unauthorized access attempts, identify suspicious behavior patterns, and respond to emerging threats before significant damage occurs.

Data exchanges in manufacturing environments

Implementing zero-trust data exchange in manufacturing environments requires a structured approach focused on protecting sensitive information at every touchpoint.

Role-based access with least privilege defaults creates a foundation where users can only access specific manufacturing data necessary for their job functions. Engineers might access design files, while procurement specialists view supply chain information—but neither can access data outside their specific domain without explicit authorization.

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Data-based risk policies enable more nuanced protection for different types of manufacturing information. Critical intellectual property like proprietary designs might require stricter controls than general production schedules, allowing security teams to align protection measures with the sensitivity and value of each data type. This approach balances security requirements with operational needs, ensuring that protection doesn't impede essential business functions.

Continuous authentication and authorization represents a critical component of effective zero-trust data exchange. Unlike traditional login methods that verify identity just once at the beginning of a session, continuous authentication monitors user behavior, device signals, and other contextual factors in real-time throughout the entire interaction period. This capability is particularly valuable when external suppliers access internal systems.

Secure viewing options for controlled access to sensitive specifications enable sharing critical information without relinquishing control, while possessionless editing capabilities allow collaboration without granting full possession of underlying files.

End-to-end encryption ensures manufacturing data remains encrypted throughout its entire journey—from sender to recipient—without being decrypted at any intermediate point, keeping it indecipherable to unauthorized parties even if intercepted.

Ensuring regulatory compliance

Zero-trust data exchange frameworks help manufacturing organizations address evolving regulatory requirements. For defense contractors and suppliers, this approach satisfies many security requirements of the Cybersecurity Maturity Model Certification 2.0, which establishes verification systems to certify protection of Federal Contract Information and Controlled Unclassified Information.

Beyond CMMC, manufacturers must contend with frameworks such as ISO 27001 and TISAX (Trusted Information Security Assessment Exchange). Zero-trust data exchange contributes to compliance by providing systematic methodologies for implementing, operating, and maintaining information security controls.

Comprehensive audit trails generated through continuous monitoring enable teams to demonstrate compliance during regulatory examinations and produce documentation of all sensitive data access.

Best practices for implementing zero-trust data exchange

Successfully implementing zero-trust data exchange in manufacturing environments requires a methodical approach based on established best practices. Organizations should begin by establishing granular data governance policies that define how different types of manufacturing information should be protected, who can access specific data categories, and what actions can be performed with protected information.

Implementing end-to-end encryption for all sensitive information represents another critical step. By encrypting proprietary designs, production specifications, and other valuable intellectual property both at rest and in transit, organizations ensure that data remains protected throughout its entire lifecycle. For particularly sensitive information, double encryption at both the file and disk level provides additional security against sophisticated attack methods.

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Context-aware access controls enable more dynamic security responses based on factors like user role, device type, location, and access timing. These intelligent controls adapt to changing conditions, automatically adjusting permission levels based on risk indicators and suspicious behavior patterns. For example, a supplier attempting to access design files outside normal business hours or from an unexpected location might trigger additional verification requirements.

Comprehensive audit logging creates detailed records of all interactions with protected manufacturing data—capturing who accessed what information, when the access occurred, what actions were performed, and whether any policy violations were detected.

Deploying suspicious activity detection capabilities identifies potential security incidents early, before significant damage occurs, while careful integration with existing manufacturing systems ensures security controls don't impede essential business operations.

As manufacturing organizations navigate an increasingly complex threat landscape, zero-trust data exchange offers a comprehensive approach for protecting sensitive information, securing supply chains, and ensuring compliance. By eliminating implicit trust and implementing continuous verification, organizations significantly reduce vulnerability to both external threats and insider risks.

For manufacturing leaders concerned with protecting valuable assets and maintaining competitive advantage, zero-trust data exchange represents a strategic imperative. By embracing these principles throughout their supply chain ecosystems, manufacturers can confidently exchange sensitive information with partners while maintaining the integrity and confidentiality of proprietary data.