The wider impact of the JLR cyber attack on West Midlands firms is revealed in a survey from the region's three chambers of commerce.
Greater Birmingham, Black Country and Coventry & Warwickshire chambers have together conducted a snap survey in a bid to understand the fallout from the attack last month.
JLR, which is headquartered in Coventry, was forced to pause production at its º£½ÇÊÓƵ plants across the West Midlands and on Merseyside and in Slovakia, Brazil, India and China following the cyber attack which shut down its systems on August 31.
The cost of the prolonged period of disruption could reach into the hundreds of millions for the manufacturer which produces around 1,000 cars a day globally.
The company, which makes the Jaguar, Range Rover and Land Rover brands, employs around 30,000 people and supports ten of thousands of other jobs in the supply chain.
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Eighty-four businesses, representing nearly 30,000 employees in the West Midlands, were consulted by the three chambers.
Of the firms surveyed, 77 per cent said the cyber attack has had a negative impact on their business, with 44 per cent describing the impact as 'significant'.
And 45 per cent reported a negative financial impact - including loss of revenue, increased costs and a slowdown in customer payments.
A further 33 per cent reported operational disruption, such as delays and system downtime, while 26 per cent said the attack has caused disruption to the supply chain, including delays with goods and services.
More than half (57 per cent) want to see financial support - in the form of grants, compensation and access to credit - to negate the impact.
Eighteen per cent are calling for specific protection from exposure under the Insolvency Act until the crisis ends.
Businesses have adopted a number of measures to mitigate the impact of the cyber attack - including reducing staff hours (35 per cent), seeking additional financial advice (17 per cent) and strengthening their own cyber security procedures (35 per cent).
Raj Kandola, acting deputy chief executive of Greater Birmingham Chambers of Commerce, said: "The results from our snap poll make it eyewateringly clear the direct impact the JLR cyber security attack has had on businesses across the region.
"While we recognise it's a small sample window, the fact these businesses collectively employ almost 30,000 people across the West Midlands reinforces the need for the Government and its partners to act decisively and support firms that are facing enormous uncertainty right now.
"We will be sharing this vital data with key stakeholders regionally and nationally to ensure the severity of the situation is fully reflected in any proposed policy programmes designed to mitigate the impact of the attack."
Yesterday, JLR announced it had started a phased return of some of its operations but was still working with the Government and law enforcement agencies on discovering the source of the attack.
In a statement, it said: "We have significantly increased IT processing capacity for invoicing (and) are now working to clear the backlog of payments to our suppliers as quickly as we can.
"Our Global Parts Logistics Centre (in Leicestershire), which supplies the parts distribution centres for our retailer partners in the º£½ÇÊÓƵ and around the world, is now returning to full operations.
"The financial system we use to process the wholesales of vehicles has been brought back online and we are able to sell and register vehicles for our clients faster, delivering important cash flow."
Black Country Chamber chief executive Sarah Moorhouse added: "The Black Country's automotive supply chain employs 13,000 people so the ripple effects of this cyber attack are being felt right across our business community.
"What these initial survey results show is that this isn't just about JLR - it's about the suppliers, manufacturers and service providers that make the Black Country the powerhouse of º£½ÇÊÓƵ automotive production.
"We're speaking to our members and to local and national Government about the support which needs to be put in place."
'Attack's impact felt among supply chain'
Mark Malone, a partner at financial services firm Begbies Traynor in Birmingham, said the impact of a large company putting a sudden pause on operations for such a long time is felt strongest by those in its wider supply chain.
"The key in this situation is seeking advice early because only through cash stabilisation, proactive stakeholder management with lenders and a holistic assessment of all options can they navigate through these potentially acute challenges," he said.
"We anticipate there will be conversations with lenders and other stakeholders on liquidity support packages and seeking additional capital from fresh external sources."
Johnathan Dudley, head of manufacturing with accountancy Crowe in Oldbury, added: "Unlike the pandemic, the uncertainty surrounding JLR's reopening and the return to normal operation has left businesses throughout the supply chain in limbo.
"Direct suppliers of components and raw materials are facing critical impacts but so too are other car manufacturers which are suffering from reduced production in their supply chains.
"Many businesses across the Midlands and South West region and beyond are implementing emergency cost-saving measures but the majority of these will be short-term fixes.
"The human impact is also mounting. Individuals facing reduced hours or redundancy are tightening their belts which in turn affects other sectors such as retail and leisure which are already under pressure."
