U.S. Electronics Manufacturers May Exit the Defense Market Due to Costs Associated with Cybersecurity Maturity Model Certification
Over one-third (33%) of respondents to an industry survey conducted by IPC say the Cybersecurity Maturity Model Certification will weaken the U.S. defense electronics industrial base, while 18% are unsure.
In a recent IPC industry survey and report, 24% of electronic manufacturers say the costs and burdens of compliance with Cybersecurity Maturity Model Certification (CMMC) may force them out of the U.S. Department of Defense’s (DoD) supply chain. The survey also finds that for many small- to medium-size businesses (SMBs), the costs and burdens of CMMC compliance may outweigh the benefits of doing business with the DoD.
Over one-third (33%) of respondents say the CMMC will weaken the U.S. defense electronics industrial base, while 18% are unsure, highlighting the uncertainties involved. In addition, 41% believe applying the CMMC clause to their suppliers will create other problems in the supply chain.