Industry Brief, July 23, 2026: PLC attack warning, Sony-Mitsubishi vision JV, tariff toll

By MillBrief Editorial · July 23, 2026 · Retrospective edition, published September 23, 2026

This is a retrospective edition. The brief did not run on July 23, 2026; we wrote it on September 23, 2026 using only reporting that was published on or shortly before July 23, 2026, and it makes no forecasts.

This is a retrospective edition covering July 23, 2026, using only reporting published on or up to two days before that date. Four items: a wider federal warning about attacks on internet-exposed controllers, a new Sony and Mitsubishi Electric venture for AI vision sensors, a study putting a number on tariff job losses in six Midwest states, and a steady month for factories in the Kansas City Fed’s district. Our own words, links to the original outlet, vendor numbers labelled as vendor numbers.

US agencies widen their warning on attacks against internet-exposed PLCs

On July 22, seven US agencies, including the FBI, CISA and the NSA, updated a joint advisory first published on April 7. It says a group of Iranian-affiliated actors has been disrupting programmable logic controllers (PLCs) since at least March 2026, by tampering with PLC project files and altering what operators see on HMI and SCADA screens. Some victims suffered operational disruption and financial loss. The sectors named are government services and facilities, water and wastewater, and energy. The update widens the scope beyond Rockwell Automation (Allen-Bradley) to Schneider Electric, Siemens and potentially other brands, and lists “potentially all internet exposed PLCs” as affected. Targeted models include CompactLogix and Micro850, Modicon M340 and the Siemens S7-1200 series.

The new material is specific. The agencies say the actors used the makers’ own programming software, including Studio 5000 Logix Designer, EcoStruxure Control Expert and TIA Portal, running on leased hosting, to copy project files off victims’ PLCs. At one US victim, a project file loaded back onto a PLC kept its normal ladder logic but added code that overrode the instructions keeping the process within safe limits. The advisory says modified logic, including Rockwell Add-On Instructions (reusable code modules), disabled shutdown and alarm logic, so systems could reach unsafe conditions without warning operators. The key actions: take PLCs off the open internet behind a secure gateway and firewall, working with IT and OT staff or integrators; search logs for traffic on ports 44818, 2222, 102 and 502, especially from foreign hosting providers; and on Rockwell controllers, put the physical mode switch in the run position.

Why it matters: Small plants are not the named targets, but the entry point is simply a controller reachable from the internet, often left that way for convenient remote support. Ask whoever set up your remote access how it works, and keep a known-good copy of every PLC program so you can spot changes. Our list of questions to ask a system integrator covers who owns the code, and our hidden costs of automation guide treats securing and patching every networked cell as a cost to budget.

Source: FBI, CISA, NSA, EPA, DOE, CNMF and Treasury, July 22, 2026.

Sony and Mitsubishi Electric form a joint venture for AI vision sensors

Sony Semiconductor Solutions announced on July 22 that it and Mitsubishi Electric have signed a definitive agreement to set up a joint venture, Advanced Vision Solutions Co., Ltd., based in Yokohama and owned 60% by Mitsubishi Electric and 40% by Sony. It is scheduled to start operating in October 2026, subject to regulatory approvals. The venture will develop vision sensors that run AI analysis on the image sensor itself, to capture site conditions, product quality, equipment operation and maintenance information, and pass the results on to decisions and control of factory equipment.

Mitsubishi Electric says it will combine the vision data with its Serendie digital platform, and the release says the solutions will pair vision with other factory data to detect changes and early warning signs that a single data type would miss. The companies also say the solutions are meant to be usable without specialist knowledge of optics or AI. In the release, Mitsubishi Electric’s head of factory automation systems, Takayuki Tsuzuki, points to labour savings and unmanned operation as the aims, and Shinji Sashida, president and chief executive of Sony Semiconductor Solutions, describes image sensors as the eyes that let AI understand what is happening on site. No products, prices or dates beyond the October start were given.

Why it matters: Machine vision is often the part of a cell that decides whether it works, and “no expertise needed” is a promise to test, not to assume. When a quote includes vision inspection or guidance, write the parts, lighting conditions and reject rates into the acceptance tests, as our RFQ guide describes, and have them demonstrated before the equipment ships.

Source: Sony Semiconductor Solutions, July 22, 2026.

Study estimates 2025 tariffs cost six Midwest states 41,700 factory jobs

A study dated July 22 by the Midwest Economic Policy Institute and the University of Illinois Project for Middle Class Renewal, written by Frank Manzo IV and Robert Bruno, estimates that the 2025 tariff wave cost manufacturing in Illinois, Indiana, Iowa, Michigan, Minnesota and Wisconsin about 41,700 jobs: 12,400 in Michigan, 9,100 in Indiana, 7,500 in Illinois, 6,100 in Wisconsin, 3,900 in Minnesota and 2,700 in Iowa. The authors attribute about 27,700 of those to higher supply-chain costs and 14,000 to retaliation that cut demand for the region’s exports. The estimate is a model, and it measures the gap against the pre-2025 hiring trend as well as actual job cuts. The six states account for 19% of US manufacturing output.

The report cites survey work finding that tariff changes raised input costs for 73% of surveyed manufacturers in 2025, and says Midwest manufacturers reported tariffs adding between 10% and 48% to their costs. It also notes that the Supreme Court struck down most of the 2025 tariffs in February 2026, after which the administration imposed a 10% global tariff for 150 days. The authors’ recommendations include repealing blanket tariffs and strengthening support for displaced workers.

Why it matters: This is an advocacy-leaning model estimate, so treat the job numbers as one view. The cost finding is the useful part: imported robots, controls and parts may cost more than the last quote you saw. Price the whole delivered project again in the TCO calculator before you commit, and test the payback with your own numbers, as our payback guide describes.

Source: Midwest Economic Policy Institute and University of Illinois PMCR, July 22, 2026.

Kansas City Fed: steady growth, rising optimism, squeezed margins

The Federal Reserve Bank of Kansas City’s manufacturing survey for July, released July 23, put its composite index at 9, down from 11 in June and up from 8 in May. Electrical equipment makers led stronger growth among durable goods producers, while nondurables slowed on declines in food manufacturing. The index of expected activity rose to 20, its highest since July 2022. Month-over-month price indexes for finished products and raw materials dipped slightly, but year-over-year price growth increased further.

Special questions showed pressure on profits. Since the start of the year, 57% of firms reported lower profit margins (43% slightly and 14% significantly), against 27% reporting higher margins and 16% no change. For the rest of 2026, 49% expect demand to be higher, a third expect no change and 18% expect it to be lower. One firm said that, with volumes set to rise on new business, it was assessing plant layout and equipment deficiencies.

Why it matters: Rising demand with shrinking margins is the case for getting more out of existing equipment before buying new. Measure where time and parts are lost with our OEE calculator, then use our guide to what to automate first to pick the station worth fixing.

Source: Federal Reserve Bank of Kansas City, July 23, 2026.