The confidence that manufacturing executives have regarding future business prospects fell from March 2023 to August 2023, according to a recent survey.

In a report published by the technology firm Sikich, entitled “Industry Pulse Manufacturing + Distribution, 2023, Vol 2,” the average optimism score of executives fell to 6.76 out of ten in August after coming in at 6.88 during March.

Interest rates were found to be the biggest factor contributing to a lack of optimism followed by poor economic conditions, labor costs and increased labor shortages.

The study also showed that 92% of manufacturers successfully implemented at least one technology project into their operations over the last three years.

Executives said that they believe marketing would be the department that would benefit the most from artificial intelligence, followed by customer service. Meanwhile, 19% of respondents said they have already begun implementing AI into their daily operations.

Manufacturers are feeling good about their cybersecurity initiatives because executives said that they ranked their cybersecurity a seven out of ten on average. Still, 34% of responders said that they have experienced an information security breach over the last five years.

Almost three-quarters of responders (73%) said that they have at least three cybersecurity measures in place at their company. Conversely, 27% of those interviewed said they have two or fewer cybersecurity measures.

“Many companies, especially manufacturers, don’t realize just how prone they are to attacks and feel that they are more protected than they actually are,” said Thomas Freeman, director of IT solutions and cybersecurity for Sikich. “Manufacturers continue to be prime targets for hackers and cyber terrorists because of their willingness to pay ransoms to avoid factory floor shutdowns. We expect this trend to continue as companies explore new technologies like artificial intelligence.”

Sikich surveyed over 100 manufacturing and distribution executives during August 2023 for the study.