161: Build a Manufacturing Facility for Your New Product

Product Startup · 2 Feb 2023 · 15m

What this episode covers

Noah Graff, Vice President at Graff-Pinkert and host of the Swarfcast podcast, advises hardware startups on building local manufacturing facilities using used machinery. He explains that startups can offset capital expenses by using excess machine capacity to produce parts for other companies, thereby reducing risk and accelerating payback. Graff emphasizes that choosing a machine based on local support and service quality is more critical than buying the newest or most expensive equipment, as seen in cases where expensive German Swiss machines failed due to poor support. The discussion highlights how in-house manufacturing provides greater control over product quality and adds compounding value to the startup's intellectual property and valuation.

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