#032 - Why manufacturing in USA vs China is becoming interesting, with Scott N. Miller of Dragon Innovation, USA

The Hardware Entrepreneur · 5 Jul 2017 · 36m

What this episode covers

Scott N. Miller, co-founder and CEO of Dragon Innovation, discusses the shifting landscape of manufacturing between the US and China, highlighting how rising Chinese labor costs and the rise of crowdfunding are making US production viable for lower-volume hardware startups. He details Dragon Innovation's new software tool, Product Planner, designed to help hardware companies manage bills of materials and unit economics, and announces a partnership with Kickstarter and Avnet called Hardware Studio to support creators. Miller also shares a critical failure story from his time at iRobot involving the first 15,000 Roombas, where a design flaw caused optical encoders to fail due to rubber dust, illustrating the importance of testing and quality control.

Other shows on the same ground, closest first.

  • The Amp Hour · 1h 31m

    An Interview with Scott Miller - Sudden SinoAmerican Synthesis

    Scott Miller, founder of Dragon Innovation, explains how his company helps startups navigate high-volume manufacturing in China, drawing on his experience building Roombas and Scuba robots at iRobot. He details the critical importance of having a physical presence in Shenzhen, managing supply chain risks like counterfeit components, and protecting intellectual property through measures like signed ICs and bootloaders. Miller also discusses the specific challenges of crowdfunding, where entrepreneurs often fail to account for tooling and compliance costs, and outlines Dragon's retainer-based business model for guiding clients from prototype to production.

  • The Amp Hour · 1h 16m

    Monster Scale Production

    Hosts Chris Gammell and Dave Jones discuss Gammell's new pro bono engineering initiative, the extreme low costs of components in Shenzhen's markets, and the massive scale of Boeing's 737 production lines. They analyze the security vulnerabilities of IoT devices, the rapid copying of Kickstarter products by Chinese manufacturers, and the VC funding logic behind the failed UBEAM juicer startup.

  • The Builder Circle · 1h 14m

    S1 E4: Cracking the Code of Hardware Manufacturing with Scott Miller

    Scott Miller, a hardware expert who worked on the early Roomba program and Dragon Innovation, explains how startups should navigate manufacturing decisions, emphasizing that the first 100 units should be built in-house to capture domain knowledge before outsourcing. He advises startups to target tier-two or tier-three contract manufacturers, use dual-sourcing for leverage at $50 million in business, and treat factories as partners by sharing founder bios and VC backing to mitigate their risk. Miller also details the importance of robust Manufacturing Service Agreements (MSAs), lifecycle testing, and quality assurance to avoid catastrophic field failures like the Roomba's early optical encoder dust issue.

  • Thoroughly Considered · 48m

    39: Made in China

    Dan Provost and Tom Gerhardt of Studio Neat discuss their decision to manufacture the Mark One pen in China, addressing backlash from Kickstarter backers who assumed a 'Made in USA' origin. They explain that US manufacturers were unresponsive and expensive, while Chinese partners offered better materials, lower costs, and the ability to run affordable production test runs. The founders also reflect on their poor initial communication regarding this shift and the importance of managing backer expectations around pricing and origin.

  • Embedded.fm · 1h 17m

    140: Physics Is the Same Everywhere

    Andrew 'Bunnie' Huang, creator of the Novena open source laptop and author of Hacking the Xbox, discusses his new book, The Essential Guide to Electronics in Shenzhen, which he funded via Crowd Supply. He explains the cultural and economic differences between prototyping in China versus the US, noting that Chinese factories use manual assembly with higher defect rates but lower upfront costs. Huang also reflects on the value of open hardware for privacy, the challenges of self-publishing physical books with unique features, and his desire to use his engineering skills to help society.

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