🚀 Shaping the Future - Issue 57

This Next Billion-Dollar Startup Wants To Save American Manufacturing

🚨 Advancing Digital Transformation

The Manufacturing X.0 agenda has practical, tried, and tested, examples of digital transformation MX.0 Midwest showcases regional and national manufacturing excellence in building for manufacturers of different sizes, at different points in their implementation journey.

🧠This Next Billion-Dollar Startup Wants To Save American Manufacturing

Hadrian founder and CEO Chris Power has raised $180 million to manufacture metal parts at warp speeds at his California factory. Now he wants to build dozens more across the country to make more parts better, faster and cheaper.

Power’s vision is somewhat different from other startups building tech to make other companies’ warehouses more efficient: He’s developed proprietary software to run Hadrian’s own factory, which allows it to churn out all types of precision metal parts for aerospace, space and defense companies faster, more efficiently and with fewer people.

Hadrian wants to build out a network of cookie-cutter, high-tech machine shops across the country to shake up a giant and fragmented industry. That’s a difficult and capital-intensive project, but one that Power argues is crucial for America’s industrial base. Investors, including Andreessen Horowitz, Founders Fund and Lux Capital, have bet $180 million on it, and the company is now worth roughly $500 million.

📚What we’ve read this week

Why Factories Are Coming Back To The U.S. [CNBC]

The Price of America’s New Factory Boom [Bloomberg Originals]

Report on Manufacturing Investment Decisions [Manufacturing Institute]

When asked about their top priorities for current dollars, nearly 74% of manufacturers reported building a robust and trained workforce as a key area for investment, which fits in with the larger macroeconomic conditions of the tight labor market and shortage of available workers. When asked on how they would spend a marginal $1 million, 61.5% would invest in new equipment. This points toward a desire to make smart investments that will transform operations and the production process, while also ensuring that the workforce can adapt to such changes. Additional areas of focus for marginal dollar investment included investing in improved processes and operations (60.2%), optimizing existing equipment (53.4%), investing in new equipment (51.7%), investing in new technologies (46.6%), and research and development (44.9%). When considering their future growth strategies, manufacturers identified a stronger domestic economy for growing sales (69.5%), increased efficiencies in the production process (67.8%), and maintaining a robust and trained workforce (67.0%) as the most significant factors contributing to expansion.

Construction Tumbles as Manufacturing Projects Falter [Construction Dive]

Total construction starts tumbled 6% in September to a seasonally adjusted annual rate of $1.2 trillion, according to Dodge Construction Network, due to a widespread drop in activity particularly around megaprojects. The drop pushed overall year-to-date construction starts through September to trail last year’s pace by 3%, according to the report. The decline follows two consecutive months of gains, suggesting a return to the “up one month and down the next” trend that has lingered for much of 2023. “Risks continue to mount for the construction sector,” said Richard Branch, chief economist for Dodge Construction Network. “The industry needs further adjusting as rates are expected to stay higher for longer, along with the potential for higher energy costs and continued political uncertainty. A return to broad-based growth in construction starts is still some time away.”

AI implies work not magic tricks ! [Put People First in Data & AI]

AI is not a magical solution but a tool developed through years of data collection and human effort, akin to how Google uses reCaptcha for data labeling. The real value of AI in business lies not in its capabilities alone but in how it's integrated to enhance specific operations and achieve tangible business goals. Companies should first assess their core activities, employee skills, and objectives before determining where AI can be effectively applied to improve efficiency and outcomes.

🎤 Past Events

🎤 Upcoming Events

👋 Get Involved

Join the Industry 4.0 Club and be part of our vibrant community, dedicated to shaping the future of manufacturing. By actively participating, you can make a meaningful impact in advancing Industry 4.0 and contribute to reshaping the manufacturing landscape.

We’re always looking for new contributors to share their expertise, experience and spread the word. You can contact us directly at info@industry40club.com with subject like “Getting Involved” and follow us on all social media (LinkedIn & Twitter) or donate to help fund the club’s activities.

💬 About Shaping the Future

Shaping the Future is Industry 4.0 Club’s official newsletter. We’ll be experiencing different formats over the coming weeks until we find the one that resonates the most with our members. You can help us improve by sharing feedback and suggestions. The newsletter will land in your inbox every Sunday morning; please subscribe to not miss anything and forward the email to someone you think would benefit from this.

If you were forwarded this and found it interesting, please subscribe and share!