For machine shops, keeping up with government standards is a constantly evolving challenge. Manufacturers cannot afford complacency. Defense and aerospace manufacturers, specifically, must comply with stringent standards and documentation procedures. A critical example of compliance necessity comes via the U.S. Department of Defense’s (DoD) Cybersecurity Maturity Model Certification (CMMC). Non-adherence is not an option, as failing to comply with ever-changing requirements leads to severe repercussions, including revenue losses and impediments to growth. As DoD suppliers are unable to collaborate with non-compliant shops, manufacturers must ensure they do not meet that description.
It is critical for machine shops to address this challenge proactively and urgently. Anticipating and preparing for compliance requirements can ensure that manufacturers in the defense and aerospace sectors are well-positioned for success, now and in the future.
A large number of regulations mandate that companies handling national security information implement stringent cybersecurity measures tailored to the type and sensitivity of the data. Recently, the U.S. Congress passed the Fiscal 2024 National Defense Authorization Act allotting $883.7 billion to the U.S. Dept. of Defense. While this presents a lucrative opportunity for job shops, it comes with a critical caveat—they must meet the technological standards required to comply with constantly evolving regulations.
For machine shops with smaller teams or limited resources, achieving compliance can be a significant challenge. Compliance may require additional help because, regardless of difficulty, it remains mandatory. To properly adhere to standards amid limited workforce availability, those shops must leverage technology that can automate processes, monitor and protect against cyber-attacks, and update operations in real time. Relying on pen and paper or other manual methods consumes substantial time and resources, negatively impacting the bottom-line, especially when budgets are tight and demands are increasing.
Consider a small aerospace and defense manufacturer that relies on manual systems to track compliance with DoD certification standards. As new, more stringent data-security standards are introduced, the shop’s outdated tools make it difficult to efficiently update and retrieve compliance data, increasing risk for the business and its customers. This strains their small team and diverts resources from core production activities.
In times of continuous change, using outdated tools will only impede the progress of job shops. To properly prepare for the exciting growth opportunities that are emerging, machine shops must ensure they have the requisite safeguards and infrastructure to remain compliant in place.
Demand for flexible solutions
Although phase 1 of CMMC 2.0 will not be fully implemented until the end of this year, it is important for defense contractors to start preparing now, as achieving compliance may exhaust significant time and resources. The DoD is proposing a comprehensive and flexible evaluation system to ensure that defense contractors and subcontractors operating in the CMMC program have implemented the required security measures. This would expand current security standards and introduce new requirements for certain priority programs. To remain compliant and continue supplying the DoD, job shops must enhance their data security ahead of these changes.
Given their often-limited resources, manufacturers seeking maximum efficiency should leverage solutions that align with their contractual requirements and CMMC implementation strategy. Cloud-based enterprise resource planning (ERP) technology can assist in various ways, including centralized data management, compliance features, and enabling scalability and risk management.
For small job shops with personnel limitations and lesser financial flexibility, managing data security in-house can be overwhelming. Tasks like creating encryption protocols, setting up access controls, keeping audit logs, and monitoring data protection require significant time and resources that many job shops simply cannot afford today.
A cloud-based ERP solution offers a practical alternative. ERP systems have built-in features such as encryption, access controls, and audit trails that comply with CMMC standards, ensuring compliance without the heavy burden on resources. As job shops navigate defense and aerospace markets, being CMMC-ready not only ensures compliance but also supports growth and scalability. Cloud-based ERP systems are adaptable to evolving compliance requirements and include risk management features to address cybersecurity vulnerabilities. This helps manufacturers stay compliant, save time and money, and avoid penalties and missed opportunities.
Planning for future success
By using a cloud-based ERP system to automatically update compliance processes and manage cybersecurity risks, manufacturers can quickly adapt to new DoD standards. This safeguard allows the manufacturer to complete production without interruption and deliveries on time. And as a result, a job shops can maintain strong customer trust by consistently meeting requirements.
CMMC-compliant ERP solutions give businesses a competitive edge by meeting complex security standards, maintaining best practices in cybersecurity, and ultimately opening doors to work with government contractors. This proactive approach is crucial as CMMC deadlines approach, offering long-term benefits in data security and business growth.
Manufacturers need to embrace adaptable, future-forward solutions to stay compliant and lay a foundation for future success, particularly as the new CMMC standards take effect in months ahead. Neglecting to invest in the necessary technology will impede growth and prove more costly than the initial investment. Secure, agile solutions offer the visibility and compliance required by the government and strategically position manufacturers for long-term success.
