Misconceptions That Undermine Risk Posture, Revenue, and Trust

For many manufacturers, SOC 2 compliance is still viewed as a “software company problem”—irrelevant to operational technologies or supply chains rooted in the physical world. That misconception is not just outdated. It’s dangerous.

As manufacturers expand their digital footprints, adopt IoT-enabled infrastructure, and integrate with enterprise clients via APIs and cloud platforms, data exposure has moved beyond the plant floor. What used to be isolated systems are now integrated, networked, and increasingly targeted.

The reality? SOC 2 compliance is no longer optional for manufacturers that want to stay in the game.

What Manufacturers Get Wrong About SOC 2

1. “We don’t store customer data, so it doesn’t apply.”
If your systems interact with customer networks, devices, or data pipelines—especially through APIs, web portals, or third-party integrations—you are part of the attack surface. SOC 2 evaluates how you secure those interactions.

2. “Our IT team can handle this when it comes up.”
SOC 2 readiness is not a task for IT to manage reactively. It involves control structures, governance documentation, risk assessments, vendor due diligence, and access controls—functions that require executive visibility and cross-functional ownership.

3. “Our customers haven’t asked for it.”
They will. SOC 2 reports are increasingly a standard requirement in supplier onboarding, particularly for Tier 1 and Tier 2 vendors servicing healthcare, aerospace, defense, and other regulated sectors. Waiting until it’s requested often means losing the deal.

Why SOC 2 Matters in a Manufacturing Environment

  • Industrial networks are no longer air-gapped.
    From MES to ERP to cloud-based analytics, most manufacturing environments have become interconnected. That means your cybersecurity maturity is on display—and subject to audit.
  • Procurement teams are under pressure.
    Enterprise customers are now held accountable for the security posture of their suppliers. Without a SOC 2 report (or equivalent), you’re an unnecessary risk.
  • Cyber incidents are rising—and regulators are watching.
    Manufacturers are increasingly targeted for ransomware and supply chain disruption. SOC 2 demonstrates you have formal, enforceable policies and controls in place to mitigate that risk.

What Executives Should Be Asking

If you’re leading operations, security, or finance in a manufacturing organization, the right question isn’t “Do we need SOC 2?” but rather:

  • What are we exposing by not having a validated controls framework?
  • How will lack of certification impact customer renewals, new contracts, or regulatory scrutiny?
  • Are our suppliers and partners relying on our systems to be secure—and do we have proof?

ERP and MES systems also play a crucial role in manufacturing, handling everything from inventory to production scheduling. If these systems aren’t secure, neither is your business. and SOC 2 compliance helps safeguard these critical operations, ensuring that your most valuable data stays protected.

SOC 2 Isn’t Just About Passing an Audit. It’s About Staying Competitive.

In manufacturing, margins are tight and client expectations are high. SOC 2 gives your organization:

  • A verified framework to demonstrate security and control discipline
  • A competitive advantage in B2B procurement cycles
  • A path to broader certifications like ISO 27001 or CMMC (especially for defense contractors)
  • Internal alignment between IT, operations, and compliance functions

How Alchemi Advisory Group Supports Manufacturers

We help manufacturing organizations implement and align SOC 2 programs—starting with scope definition, readiness assessments, and policy development. Our team understands the unique constraints of operational environments and tailors compliance structures to work alongside production—not against it.

We don’t force enterprise SaaS models onto physical systems. We build practical, defensible compliance programs that hold up under audit, align with your risk profile, and support long-term growth.

Ready to get ahead of the next procurement requirement or customer audit? Let’s talk.

Interested in learning more or have questions?
Reach out anytime – we’re here to help.Contact:
Lori Barber
lorib@lux24.com
214-906-6633