Automation, Machining, and a Coal Mine: What Vertical Integration Buys You | Ep. 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.




