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The Factory of the Future with Chris Power

Today, we interview Chris Power, the founder and CEO of Hadrian. Hadrian is a company trying to build the most efficient factories on the planet. In this conversation, we’ll introduce the audience to advanced manufacturing, and expose them to the reality that it’s a remnant of the first space race. We also cover the challenge of manufacturing, the importance of visibility in complex systems, the killer app for space, how simplifying the world of atoms can be done through bits – and ultimately, what kind of experimentation that may unlock. Topics Covered: 0:00 - Introduction 2:03 - What is advanced manufacturing? 5:00 - When a hatch is jammed at the ISS 7:03 - What’s happened since Space Race 1? 10:08 - A retiring workforce 14:48 - What is at stake? 22:59 - Onshoring manufacturing 26:18 - Is capital enough? 26:56 - Fixing the problem with technology 31:27 - Convincing the old guard 34:00 - Building a new culture 37:35 - Experimenting with hardware 40:23 - The value of observability 44:06 - The cost of timeliness 48:42 - Hadrian’s key risks 51:59 - Why Hadrian pivoted 55:04 - What talent is needed 1:00:22 - Why focus on space first? 1:06:47 - The killer app of space 1:14:14 - Who inspires Chris? Resources: * Hadrian’s website: https://www.hadrian.co/ * Chris’ Twitter: https://twitter.com/2112Power Stay Updated: * Find us on Twitter: https://twitter.com/a16z * Find us on LinkedIn: https://www.linkedin.com/company/a16z * Subscribe on your favorite podcast app: https://a16z.simplecast.com/ * Follow our host: https://twitter.com/stephsmithio Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. For more details please see a16z.com/disclosures.

Chris PowerguestSteph Smithhost
Nov 18, 20221h 19mWatch on YouTube ↗

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At a glance

WHAT IT’S REALLY ABOUT

Hadrian's Chris Power on Rebuilding America's Fragile Advanced Manufacturing Base

  1. Chris Power argues that beneath flashy aerospace and defense products lies a chaotic supply chain of roughly 20,000 to 30,000 small shops run by aging owners, with undocumented knowledge that is vanishing as they retire.
  2. He says the problem is mainly one of talent and time rather than capital, because outsourcing in the 1980s destroyed the skills base and culture needed to rebuild advanced manufacturing.
  3. Hadrian's approach is to automate 60 to 80 percent of high-precision machining, simplify the rest so newcomers can be trained in weeks, and give every technician equity to encourage knowledge sharing.
  4. Power says reliable schedules and factory-wide observability could cut product costs by 30 to 50 percent and let customers move far faster, and he explains Hadrian abandoned a roll-up of legacy machine shops because their hardware variability made automation near impossible.
  5. He makes a values-driven case for space as a growth-versus-degrowth question and hopes Hadrian will lower the barrier to hardware experimentation the way cloud infrastructure did for software.

IDEAS WORTH REMEMBERING

5 ideas

Advanced manufacturing looks more advanced than it is

Power says that below the assembly level, fighter jets and the ISS depend on thousands of small suppliers, and he cites the B-2 parts needing reverse engineering and a hatch spec found in a retired engineer's desk drawer.

Money alone cannot fix reshoring

Power uses an Olympics analogy to argue that you cannot hire thousands of experienced people on demand, so the constraint is time and a generative talent base, not capital.

The aging workforce threatens critical knowledge

Power says the average worker at these small shops is about 55 and the average owner-operator is 62, and the know-how often lives in the heads of two or three people and is not transferable.

Simplifying jobs opens the talent pipeline

Power says machining traditionally relies on one person doing the whole pipeline, so Hadrian automates what it can and builds process scaffolding so new hires can be productive in 30 to 90 days.

Equity aligns incentives and encourages knowledge sharing

Power contrasts hourly manufacturing, where sharing knowledge threatens one's job, with Hadrian giving all technicians equity so they are motivated to contribute to the system.

WORDS WORTH SAVING

5 quotes

And a lethality mirage is basically, you know, everyone else's impression of you is that you're a ten out of ten lethal, so they're absolutely not, not gonna fuck with you.

— Chris Power

It's not a capital problem, it's a time and investment problem, and you have to have the base layers there to be ab- able to execute the hard stuff.

— Chris Power

As, as VCs know, uh, risk happens slowly and then all, all at once.

— Chris Power

Most of the barrier to entry to doing something amazing is like psychological.

— Chris Power

It's all kind of swags and, like, fuzzy maths and people standing around, you know, trying to do time studies which have their own psychological flaws, you know?

— Chris Power

Fragility of the defense and space supply chainRetiring machinists and lost tribal knowledgeTalent versus capital in reshoringAutomating and simplifying machiningFactory observability and on-time deliveryWhy Hadrian dropped the acquisition-first strategyThe case for space and a hardware Cambrian explosion

High quality AI-generated summary created from speaker-labeled transcript.

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