Cybersecurity as an Equipment Manufacturing Business Imperative

By Danny Gavin, Communications Coordinator, Association of Equipment Manufacturers (AEM) --

As equipment manufacturers continue to integrate advanced digital capabilities into their products, cybersecurity is rapidly shifting from a niche concern to a critical business priority. OEMs must now rethink how they approach every aspect of their business, from product design to risk management and long-term system security.

During AEM's recent 2026 Product Safety & Stewardship Conference and Liability Seminar, PlaxidityX Director of Sales Jason Cole outlined a clear message to manufacturers: cybersecurity is now a fundamental requirement for maintaining market access, protecting customers, and safeguarding the integrity of modern equipment.

"Cybersecurity is no longer an option for manufacturers. We now have to fall in with this regulatory landscape which compels many OEMs to engage in cybersecurity," said Cole.

Learn more about AEM's Safety & Product Leadership service area, and all the ways it helps AEM members and the industry maintain market access and comply with ever-evolving regulations.

A Growing Risk Landscape

Equipment is more connected than ever. Sensors, telematics, GPS tracking, and various sensors are now standard across many new machines in the field, all of which may be connected to cloud storage. While these innovations deliver significant value improving efficiency, uptime, and fleet management, they also introduce openings for vulnerabilities.

Equipment is also susceptible to a wide range of risks, including ransomware attacks, data theft, unauthorized system access, and even GPS signal manipulation. These threats reflect real-world tactics that continue to evolve alongside the technology they target.

Motivations behind these attacks vary. In some cases, attackers seek financial gain through ransom demands, effectively locking users out of their own equipment. In others, individuals attempt to bypass subscription-based features to gain unauthorized access to proprietary capabilities.

Supply chains also represent a growing area of concern, as third-party components and software integrations have the potential to introduce additional vulnerabilities.

Regulation Is Raising the Stakes

Alongside the rise in cyber threats, and as a result of them, regulatory frameworks are tightening. One of the most significant developments is the European Union's Cyber Resilience Act (CRA), which establishes mandatory cybersecurity requirements for products with digital elements sold within the EU.

The CRA introduces a comprehensive lifecycle approach to security, requiring that manufacturers address cybersecurity at every stage, from design and development to deployment and maintenance. Products must meet essential security requirements, and compliance is necessary to obtain CE marking.

"CE marking is something that you would see on anything sold in Europe," explained Cole. "It's not a quality indicator or a certification mark, but it indicates that that product can be sold and traded withing the EU on its own and it complies with all applicable regulatory requirements on that product."

Importantly, the CRA carries substantial penalties for non-compliance. Organizations could face significant financial consequences, including fines tied to overall company revenue. Full enforcement is expected by Dec. 11, 2027, following a transition period that began in Dec. 2024.

For manufacturers operating globally, this regulatory shift underscores a broader trend: cybersecurity is becoming a prerequisite for market participation, not just a competitive differentiator.

From Compliance to Competitive Advantage

Cybersecurity also delivers tangible business benefits. Customers increasingly expect secure, reliable platforms that protect their data. At the same time, manufacturers face growing liability if vulnerabilities lead to operational disruptions.

And secure products enhance brand reputation, strengthen customer trust, and create long-term value. As a result, forward-looking OEMs are beginning to view cybersecurity not simply as a compliance exercise, but as a strategic investment.

Building Security into the Product Lifecycle

To effectively address cybersecurity risks, Cole recommends that companies take a structured approach that integrates security throughout the product lifecycle.

1. Conduct comprehensive risk assessments. Manufacturers must identify, evaluate, and mitigate potential attack paths across their equipment systems. This process is often referred to as a cybersecurity or threat risk assessment, and it helps organizations understand where vulnerabilities exist, as well as prioritize remediation efforts.
2. Embrace "secure by design" principles. Cybersecurity cannot be an afterthought. Instead, it must be embedded into the earliest stages of product development. The CRA explicitly requires manufacturers to design products that minimize exploitable vulnerabilities before they reach the market.
3. Implement ongoing vulnerability management. Security does not end at product launch. Manufacturers must continuously monitor, identify, and address vulnerabilities over time. This includes deploying updates, issuing patches, and proactively testing systems to detect risk.
4. Strengthen organizational readiness. Organizations must establish clear processes for incident response, communication, and remediation before a product hits the market. In some industries, such as the on-road automotive industry, cybersecurity flaws are already being treated similarly to product recalls - a trend that may expand to non-road equipment manufacturing.

The Path Forward

"Hackers are constantly changing their attacks, and companies need to be constantly changing their strategies to adapt to ever-changing conditions," said Cole.

Cole also notes that many organizations still operate with fragmented security systems, which can lead to inefficiencies and challenges such as "alert fatigue," where teams are overwhelmed by high volumes of notifications and may miss critical threats.

To address this, manufacturers are increasingly adopting integrated security frameworks that combine event management, network detection, and centralized monitoring. These systems provide greater visibility and enable faster, more effective responses to potential attacks.

Ultimately, cybersecurity threats will continue to change, the regulatory environment surrounding non-road equipment technology will continue to evolve, and manufacturers must remain agile to keep up. For OEMs, the message is clear: investing in cybersecurity today is essential to ensuring resilience, maintaining market access, and delivering reliable, secure products in the future.

About AEM's Product Safety & Stewardship Conference and Liability Seminar

The Product Safety & Stewardship Conference is setting the stage as the industry's only event designed to provide attendees with first-class access to the latest insights on product liability, safety design standards, regulatory requirements, and potential risks to avoid.

In addition to these core themes, the conference also explores emerging topics such as cybersecurity and AI, technical writing, electrification, and chemical compliance, ensuring a comprehensive view of the evolving landscape of product safety and stewardship.

Next year's conference is set for April 19-22, 2027, in Bloomington, Minnesota. For more information, visit the official event website.