Why not set up your own manufacturing shop?
If we get large enough we may do that, but at a maximum, we’re seeing 30 [Geometric Construction Systems or GCUs] in Western Canada. So we’re probably looking at someone building a maximum of six to 10 systems a year. If the market pulls us somewhere else and our volume rises, we’ll look at it again.
What are your manufacturing requirements?
Quite a few of the components are off the shelf. For example, our nail guns can come from any hardware store like Home Depot. We did that on purpose: if you have custom parts, when something breaks you have to make another custom part or stockpile those parts and keep an inventory. Anytime you can put that responsibility on someone else’s shoulders, the better. That said, the fabrication of the steel and the programming must be custom.
What is your first choice?
We want to stay Canadian. Currently we’ve been working with a company called Option Industries for the fabrication of steel components and McGregor & Davis Engineering on wiring the prototype, and sticking with them is a large possibility, but it’s not nailed out. Manitoba is our second choice, going overseas is third. Manitoba, through our research, is a manufacturing hub. They also have the distribution chain, even to the U.S. But then again, do companies there have the expertise? We also have to see if we can replace some customized components with off-the-shelf models; that will be a process in itself.
Why are you hesitant about overseas?
These GCUs will be going into factories. There may need to be customization for each machine in each facility, and even three in the same facility might need to be different. I think it will be difficult to provide that customization if the manufacturing is done overseas. I think our intellectual property being stolen is a larger issue, along with quality control.
What will your largest challenge be?
Finding maintenance people. The service piece is a large component. These machines will take a beating since they’re in a construction zone. We know we’ll have to keep our maintenance staff on payroll.
Category: Project Start-Up, Start-Up Episode 05
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