Lights Out · 9 Oct 2026 · 52m · Episode 51
Michael McHale, founder of PSA Systems, explains how his vertically integrated automation integrator and machine shop in Pennsylvania grew from $900,000 in revenue to over $30 million by owning fabrication, machining, and engineering capabilities in-house. He discusses the capital-intensive nature of modern manufacturing, citing an $800,000 five-axis mill that cost nearly a million to install, and advocates for a five-year strategic plan over short-term EBITDA chasing. McHale also details PSA's rollout of IBM Watson for enterprise AI workflow automation, emphasizing the need for data guardrails when handling Department of Defense contracts, and shares his philosophy that employee prosperity is the true measure of business success.
Where this conversation describes AI being used to build or deliver a product. Part of the AI in practice tracker.
Running the companyIBM Watson
PSA Systems is rolling out IBM Watson as an enterprise AI platform to automate internal workflows, specifically starting with project management and accounting agents to help staff work better and control the business.
“we're rolling out IBM Watson into the company as our AI platform, company wide. So our 1st 3 agents are done and we're keeping generating agents … helping the staff work better and control the business better.”
Speaker 3 · Hear it at 16:20
companies scaling up
Other shows on the same ground, closest first.
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Russ Bukowski, President of Mastercam, explains how AI-powered CAM systems like Mastercam Copilot are bridging the knowledge gap left by retiring manufacturing experts, compressing the learning curve from years to months. He discusses how mid-size machine shops are gaining leverage through vertical integration and exclusive supplier agreements, driven by post-COVID supply chain vulnerabilities. Bukowski also details Mastercam's acquisition by Sandvik, which enabled significant investment in new technologies like Everpath and the acquisition of channel partners to foster direct customer relationships.
Bradley Turner, VP at MATRIC, explains how the contract electronics manufacturer has maintained competitiveness through heavy investment in automation and optical inspection technology, specifically partnering with Koh Young for pre- and post-reflow AOI and SPI. He details how this strategy reduces labor dependency, enabling MATRIC to benefit from reshoring trends by lowering the fully landed cost of production in North America. Turner also discusses the company's 50-year evolution from mining products to diversified industrial segments, leveraging NADCAP certifications to mitigate customer concentration risk and ensure financial stability for future growth.
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