What Silicon Valley Gets Wrong (and Right) About Manufacturing: Workforce, Risk, and Getting Out of the Bubble

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Overview

This live episode of Manufacturing Happy Hour, recorded at Hapa's Brewing in San Jose, California, was split into two parts. The first panel, Vinod Anandarajah of Kanavu Automation and Kevin Toomer and Adam Soder of Sumitomo Drive Technologies, covered mechatronics and how manufacturers can build the skilled workforce they need instead of waiting for it to show up. The second panel, Kim Losey, Glenn Reid, Nick Haase of MaintainX, and Florian Pestoni of InOrbit, discussed the relationship between Silicon Valley and the factory floor: what the Valley's appetite for risk and disruption offers manufacturers, where it clashes with the plant's need for predictability, and why builders on both sides need to spend time with the people actually doing the work.

26 min read
1:26

A Show That Started in a Rockwell Demo Room

The host, Chris, noted that Manufacturing Happy Hour began in the Bay Area, and that Vinod was its very first guest. The two were co-workers in the automation industry at the time. Vinod remembered working in the Rockwell demo room when Chris walked in holding two beers, explaining that their manager would let them drink beer at work and record a podcast.

Chris used the story to pass on some career advice he often gives to people starting side projects while holding a full-time job: don't let the side project interfere with your daily work, and get your manager's blessing. He thanked that manager, Paul, by name. The first episode was a low-budget video shot on an iPhone in a controls room, about managed versus unmanaged switches. Its best-known detail, and the top comment on YouTube, is that Vinod grimaces every time he sips the beer. Vinod explained that Chris had brought a dark Guinness-style beer and he prefers wheat beer.

3:35

Mechatronics, Explained Over a Beer

Chris asked Adam to explain mechatronics the way he would to someone at the bar. Adam said people often assume he invented the word, but it is now an industry-standard term for combining mechanical and electrical engineering, "mechanical electronics."

He described it from Sumitomo's point of view. The company has long been a mechanical business. The electrical side was always present, but controls are now becoming dominant. Adam said Allen-Bradley and everyone else in controls are moving products toward that level of control. In his view the gearing itself is largely staying the same, apart from some technological change, while the control side is what is really changing. Understanding how the two come together, in terms people can relate to, is the core of the field.

Chris explained why the topic belongs at the start of a workforce conversation. As more people enter manufacturing, mechatronics is where many of them are focusing, and all three panelists built their careers around it. Vinod founded Kanavu Automation. Kevin is a product and program manager for mechatronics at Sumitomo. Adam leads the engineering team there.

5:40

Kevin's Apprenticeship in Germany

Kevin entered the field through a three-year apprenticeship in Germany. He started as an electronics technician at a midsized mechanical engineering company that built grinding and milling machines, going straight from school into the company. The program combined classroom education with practical work. He could apply what he learned in school directly to the company's machines, and from the beginning he was part of the company's work culture, its processes, and the machines it eventually sold to customers.

Kevin described the arrangement as empowering for him and good for the employer. The company could train its own people to its own processes and standards, and it ended up with staff who had come through its apprenticeship, understood what they were talking about, and knew both the products and the company. He suggested the US could apply the same idea through apprenticeship programs.

8:07

Sumitomo's In-House Apprenticeship: Growing Your Own Machinists

Adam described how Sumitomo Drive Technologies built its own program. He said the problem was not unique to them and was concentrated in the machine shop: finding machinists, finding good ones, and keeping them long enough to become experts. The company concluded quickly that it had to train its own.

It partnered with a local community college. At first Sumitomo was effectively attending the college's classes and hiring graduates as they finished. Now the program runs inside Sumitomo's own facility. It is currently a two-year program. Apprentices hold a full-time job and a full-time apprenticeship while also attending school, and their on-the-job work ties back into their coursework and grades. Sumitomo studied the college's curriculum and applied it to its everyday machining. Whatever the company needs to make on CNC machines, the apprentices learn to do, and the same goes for manual machining. When they finish, they have a 40-hour-a-week job waiting; Adam stressed there is no question about that.

Several graduates who started in machining have become manufacturing engineers. They continued on to bachelor's or higher degrees on their own, not through Sumitomo, building on the foundation from the apprenticeship, and now work as manufacturing engineers for the company. Adam framed this as "growing our own," because finding good people has become hard. He was not sure whether to attribute that to a generational shift, a lack of workforce, or a lack of good workforce. Sumitomo has been moving assembly in-house, and he said it made sense to bring worker development in-house too. In his experience, people who learn from the ground up tend to be good and to stay a long time.

Chris drew out a takeaway for manufacturing leaders: a program like this does more than fill machinist positions. It creates pathways for career advancement, including going back to school for a degree.

10:43

Vinod's Path: A Master's Degree, Apple, and a Bootstrapped Company

Vinod took a different route. He earned a master's in mechanical engineering at the University of Michigan, partly influenced by his father, who was a civil engineering professor at Johns Hopkins for 30 years. Vinod's younger brother also worked at Figure, which he described as a humanoid robot startup in San Jose.

Asked whether there were other reasons for the choice, Vinod said he was interested in his father's academic world but wanted a more practical path. He said plainly that you don't need a master's or a PhD to succeed in automation. Still, the experience helped him. As a teaching assistant he taught CAD, generating G-code and sending it to a CNC machine. For one lab he had students draw Bart Simpson. He said that kind of creative, hands-on mechanical engineering work helped him throughout his career.

After Rockwell, Vinod worked at Apple as a manufacturing engineer on the MacBook team, where he learned to bridge product design and manufacturing equipment. The drawback was the travel, which was hard with a family. His wife told him that if he was going to work that hard, he might as well work for himself. He bootstrapped Kanavu Automation eight years ago and built it "brick by brick," deliberately not as the venture-backed company people usually picture in the Bay Area.

He described the company's history in two halves. In the first half he worked as a consultant. He saw that the Bay Area had many good integrators who needed help, either with bandwidth or with particular skill sets, so he contacted people he knew and offered programming help. That led to a lot of complex robot programming on systems with around a thousand I/O points, five robots, 12 vision cameras, and 50 servos. In the last four years the company has moved to building its own equipment, developing its own designs for assembly, inspection, and AMR equipment. Vinod said he now has good work-life balance; last season he coached his child's kindergarten basketball team.

12:51

What Mechatronics Looks Like on the Front Line

Chris asked Kevin to describe mechatronics in practical terms for frontline work, recalling that Kevin had earlier called automotive an industry of the future, where people and automation work in harmony. Kevin said a purely mechanical job done by one person is largely a thing of the past. Workers now need support, whether from software or from a robot alongside them. His maintenance example: there is no longer just one person walking the facility checking on systems. That person is now supported by many sensors. Kevin saw this as a change of the last few years.

Asked what keeps the work exciting, Adam said every day is different. Sumitomo serves many industries. It does standard gearing for conveyors and equipment such as a grain mixer, and he noted there was a conveyor right in the brewery. When the company moved into precision products, Adam found a whole industry he had never heard of growing up, and now sees everywhere. He might work on a jet bridge one day and a robot lifting cars the next, or an AGV pulling a dump truck. He said there are products that let a single AGV move an entire dump truck, something he would never have thought possible. His whole department now works on both the electrical and the mechanical side.

Kevin's answer was simpler: finding solutions to problems. He noted that customers often don't know exactly what they want from Sumitomo; they only know they have a problem, and his team's job is to help solve it.

18:38

The Founders Panel

For part two, Chris did a "hot swap" of panelists and asked each to name a current or recent focus and something people don't know about their entrepreneurial path.

Kim Losey was most recently CEO of Rapid Robotics, which she wound down about a year before the recording; she called it a terrible experience to go through. Her first company dated from about age nine. Her grandparents had a summer house on a golf course, and during a tournament she hired her brother to fish golf balls out of the bay and sold them back to golfers at the tee. She said she saw a way to make money and solve a problem and figured out the rest from there.

Glenn Reid started in software. The highlight was building iMovie and iPhoto at Apple, where he worked for Steve Jobs. He moved into manufacturing because he loves products, especially things people will actually pay for, which he said is usually not software. He co-founded a company making washer-dryer combos, which he said "almost succeeded" and taught him a lot about manufacturing. He then spent a year and a half in advanced manufacturing at Ford and now runs a startup working on autonomous robot navigation.

Nick Haase is a co-founder of MaintainX, which builds software that helps frontline workers execute work, mainly in maintenance and asset management. He said a focus on making the product easy for the end technician has driven much of the company's success. His career has wound through very different businesses. He started in sales and founded his first company in medical devices, and he named effort and persistence as the common thread.

Florian Pestoni said he usually feels like the only software person on panels like this, so he was glad to have company. InOrbit doesn't make robots; it makes robots work better together. The company started using the term "orchestration" when people tended to respond "orchestra what?", and he said the industry is now coming around to it. Since Kim had talked about her first venture, he talked about his planned last one: he is obsessed with pizza, doesn't believe in retirement, and expects to spend his later years making pizza.

23:50

Bringing Silicon Valley to Milwaukee: Risk and the $21 Laser-Cut Parts

Chris, who lives in Milwaukee, asked Glenn what it was like to bring Silicon Valley know-how to Milwaukee when Glenn built the washer-dryer company there. Glenn said everyone in Milwaukee wanted to introduce him to their friends because he was "the weird guy from California," and he became a kind of cultural ambassador between the two places. In his telling, Bay Area people treat the Midwest as flyover country and can barely tell Milwaukee from Minneapolis, while Midwesterners think Californians are crazy, and Glenn said they aren't entirely wrong.

The central difference, in his view, is risk. He developed a whole presentation on "the anatomy of risk." He described the Midwest as an approval culture: if your sister or your mom doesn't think something is a good idea, you don't do it. The Bay Area, he said, is more "hold my beer." He added that there are probably more smart people in the Midwest than in the Bay Area, where many people show up just trying to get rich, but that some risk appetite is missing.

His example: the team needed a small plastic model to demonstrate their technology. Instead of cutting it by hand, Glenn wanted it laser cut. After searching Milwaukee they found a shop with a laser cutter that quoted roughly seven days and around $750 for seven or eight parts. It was 11 o'clock on a Thursday, and it didn't seem like the best option, so Glenn searched online and found a company that turned out to be in San Francisco. He uploaded his CAD file, got a full quote in about four minutes, with next-day delivery and a cost of about $21. He bought it, then went back to the Milwaukee shop owner to tell him what was happening.

His lesson: many businesses look at the equipment they have and what they've done before, figure out what they need to earn, and send a quote on a sheet of paper. Meanwhile, in Silicon Valley, someone is automating that job out from under them, charging a tenth of the price, and delivering overnight. If you aren't watching for that, and aren't a little scared, customers stop ordering and you won't even know why. He concluded that you have to challenge and disrupt yourself.

27:24

Treating B2B Users Like Consumers

Chris asked Nick what he learned from his consumer businesses, including Loot and a line of startup-themed shirts that Chris said got good at Facebook ad targeting early on. Nick said B2B companies give themselves permission to focus ruthlessly on logical outcomes and ignore user experience. In consumer products that isn't possible. He had built a free product, and he said even free wasn't free enough: users complained about ads, dropped off if the product was hard to use, and wouldn't watch even a five-second tutorial. If the app didn't make immediate sense, the user was gone, with no chance of winning them back.

That experience shapes how he and his MaintainX partners think about their software. Users shouldn't need to be hand-held through it. If it isn't intuitive, it creates friction, and friction hurts adoption. Nick called adoption a metric undervalued by many B2B companies, which assume people will figure the software out because their job requires it. Without adoption, he argued, you don't get the results you are after, and treating B2B users the way you would treat consumers produces better results.

The same thinking carried over to marketing. MaintainX was one of the few companies advertising to frontline manufacturing workers on Facebook and Instagram. Other software companies asked why, since that wasn't where their customers were. Nick's answer was that these workers are people too and check Facebook to see what their kids are doing. Those ads were also cheap relative to what MaintainX could afford, because the company wasn't competing on thin consumer margins. He believes treating the audience as consumers, with that kind of respect, has given the company a major advantage over how the rest of the ecosystem treats these users. Chris added that people are used to easy, intuitive tools in daily life, and manufacturing software should try to match that.

30:47

Disruption Versus Predictability

Kim's background includes leading growth and marketing at Hasbro, running an omnichannel retail company, and being part of an organization acquired by Autodesk. Chris noted that she has often led companies through inflection points and asked for advice.

Kim first connected the two previous answers. She said Silicon Valley loves risk and disruption because to people there it means something new and better. On a manufacturing floor, the last thing anyone wants is disruption. They want predictability and to know exactly what throughput will be at the end of the day. She said that mismatch often hurts.

Picking up Nick's point about user experience, she said people in deeply technical industries often don't see complexity and don't notice when something is far harder than it should be for an average person. She often casts herself as that person, the one asking why something is so complicated. She may not understand how it works, but she can say how she wants it to work.

On inflection points, Kim said she finds them exciting. She thinks of them as do-or-die, like driving a car very fast with no guardrails and perhaps no safety net, making it up as you go. Her lesson: there is a lot of opportunity, but you can't be afraid to make it up as you go. Instead of looking for familiar patterns, look for the outliers and for people willing to do something different and ask why things are the way they are. Chris summarized the point for manufacturers: you don't need everything figured out before you start.

33:18

A Robot Storefront on Mountain View's Main Street

InOrbit has a storefront on the main street of Mountain View where visitors can walk in and see robots. Chris asked Florian how it has helped the business. Florian first noted that Mountain View is where Silicon Valley began, and he likes being part of that history. InOrbit works with manufacturers and many other industries. He said the fun part about robots now is that they're no longer confined to production lines: InOrbit's customers include hospitals, airports, and retailers. One early customer was, as he put it, the largest retailer in the world, which got the team thinking about robots in retail.

The storefront came from a communication problem. For a long time, when InOrbit said it did robot orchestration, people didn't know what that meant, and when it was explained, they said it wouldn't work. So the team decided to show them. Florian said there were two usual ways to do that: beg a customer to let you bring other prospects to see their setup, which sometimes works and sometimes doesn't, or rent a warehouse in the middle of nowhere and fill it with robots. Neither appealed, so they made it very public. It started small and grew into its own thing.

The space lets InOrbit engage with the large Bay Area robotics community, for which it hosts frequent events, and with the general public, including people whose only exposure to robots is a scary movie. Florian described visitors who come in, see a robot, and conclude it's just a machine, which he said opens up a whole conversation. InOrbit also partners with nonprofits. The previous summer it brought in 40 kids from San Francisco, who took the train and walked over, and gave them what Florian described as a million dollars' worth of robots to play with for two hours. He doubted that would happen in a remote warehouse. He added that investors will tell you not to do something like this, and sometimes sticking to your guns works out. Glenn joked that he had once had a retail space because it was cheaper than warehouse space, and Florian said it is cheaper than office space too.

37:27

What Role Does the Bay Area Play?

Chris asked each founder what role the Bay Area plays in industrial innovation and the next generation of manufacturing technology. Nick, joining from a hotel in Florida, called the Bay Area the birthplace of the innovation that drives the world, pointing to the cloud revolution, and said the same moment is happening with AI. The world's leading AI companies and researchers, he said, are within about 20 miles of the venue. He acknowledged that most of that work isn't reaching manufacturers yet and is still being figured out. He said the leading robotics engineers are also in this ecosystem, and described a permissiveness and a concentration of talent willing to try unconventional ideas, which he believes spreads around the world, generally for the better.

His caution was that you also have to "touch grass" in flyover states and cities to understand where people actually are, and then work out how to bring them along so manufacturing isn't 20 years behind the next wave. Pointing to how long it has taken many manufacturers to digitize and move to the cloud, he argued that if it takes 16 years to adopt AI and robotics, the US won't be a leader in manufacturing. Accelerating that adoption, he said, is the challenge of this wave.

Florian joked that this was the longest he'd gone at any event without hearing "AI." He said San Francisco has 17 AI events every night and that robotics has been rebranded as "physical AI." He acknowledged enormous hype but said hype doesn't mean something isn't real, and that some of the progress is amazing. In his view, the industry is at the intersection of agentic AI and physical AI, and the key shift is what he calls "intent over specification." Using a beer example: previously you had to program exactly when the beer would be poured; now you can express what you want, perhaps what kind of beer, and the system handles the rest. He recognized that AI's non-deterministic nature scares many people but said there are ways to manage it, including using AI to create deterministic behavior. He finds it exciting that tools built to move pixels on a screen are now being used to move atoms in the physical world. Chris noted they had made it 35 minutes before anyone said "AI."

Kim had spent several months in Indiana the previous summer, where people kept asking why she was building in the Bay Area and urging her to come see how they lived. She sees an opportunity to bring industry and Silicon Valley innovation together, because "time is money" applies to both. In manufacturing, downtime costs money and jobs. In Silicon Valley, burn costs money, jobs, and reputations. She thinks each side would benefit from understanding the other's pressures. What she believes Silicon Valley can bring to manufacturing is a sense of "what could be," not just "what is," and a sense of wonder. She said she refuses to believe things are impossible given enough time, money, and the right minds, and she encourages customers outside the Valley to think that way.

Glenn offered a metaphor: Silicon Valley is like your weird billionaire little brother. Others want someone else to take the risk first. They watch, follow if it works, and if it fails, they say "I told you you'd break your neck." Glenn said the Bay Area takes pride in going first, and it helps to have a couple of billion dollars in your pocket. His example was Elon Musk, who, for all his faults, Glenn said fundamentally disrupted automotive manufacturing. When Glenn was at Ford, people there kept asking what Musk was even doing. Glenn said Musk didn't know anything about making cars, and that this was both a strength and a weakness.

44:50

Getting Out of the Bubble

The final question asked how each founder keeps a pulse on what happens outside Silicon Valley. Chris framed it as relevant to anyone at a large company who spends too much time inside headquarters or a single factory.

Florian had just returned from visiting a customer's plant in Poland and had recently been in Minnesota at minus 10 Fahrenheit. His principle is to go where the robots are. Because InOrbit makes software, it could in theory work with deployments from anywhere, but he said you can't relate to people that way, so being with the people doing the work matters. With deployments on four continents, he can't be everywhere, but he tries. He also stressed industry events, mentioning Automate, where Chris has a role, while warning that talking only to people inside your own universe creates a bubble.

Glenn said there's no substitute for "throwing yourself out the front door": robotics meetups and events in San Francisco, and anything that connects him with people. He said you always meet someone doing something you've never heard of. LinkedIn helps, in his view, but runs about six months behind what's actually happening.

Kim told the manufacturing audience to watch for her on LinkedIn. She often messages people with interesting-sounding jobs, such as those running labor teams or managing frontline QA, to ask what they're looking at, share what she's seeing, and learn what she's missing. She said they always enjoy telling her what she isn't thinking about, and she welcomes it.

Nick gave the closing answer. You have to go to the plant floor and talk to people, especially those who aren't using your systems or adopting the technology. He said you need to understand what creates their friction: whether it's psychological, whether it's intimidation, or whether there's a real learning curve you've missed. He warned that early adopters can mislead you into thinking a product works when it only "kind of works," because those users were excited enough about its potential to push through the friction.

He said the same advice applies to manufacturing leaders. Many graduated from the front lines five or ten years earlier and never go back to shadow their teams. They believe they solved problems that still exist a decade later, while workers now spend much of their time on some elaborate spreadsheet workaround, and leaders lose sight of how many labor hours go into wildly inefficient tasks. His conclusion was that nothing beats going to the front lines non-selectively, without cherry-picking the people doing the work you find most exciting.