Interview Series #01 - The Future of Manufacturing
An interview with Randy Altschuler (CEO Xometry).
Hey there!
I’m doing an interview series with founders and commercial leaders of manufacturing technology companies. I will share these interviews regularly with you. These interviews will have a summary in this format and a link to the full transcript.
Since this is the first time I’m doing it, I appreciate any kind of feedback. Also, if you have any suggestions whom I should interview, please tell me.
Enjoy reading - and as always, sharing and feedback is a gift.
Robin
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Intro 👇
In this interview, I sat down with Randy Altschuler, CEO of Xometry.
Xometry, founded in 2013, is a leading on-demand manufacturing marketplace that went public in June 2021. The company reported revenues of $463M for 2023, up from $381M the year before. Xometry's platform connects businesses with a vast network of manufacturers, leveraging AI to optimize production processes and efficiency.
Randy and I talked about the learnings of building a marketplace in the early days, scaling a platform, hiring, and what it takes to be an entrepreneur in manufacturing. Below you can find a summary of the interview. You can find the interview transcript here. Thanks again Randy for the good conversation. Let’s build!
“As a founder, be the Jedi master and be always right out there in the front talking to customers.”
Main take-aways for builders
👉 Leaders should lead from the front. Founders need to be the chief sales people initially and validate their concepts quickly. Nothing is more important for founders than spending time with customers
👉 To get large customers in manufacturing, you need to follow a land and expand, proving initial value and expanding across the organization
👉 To scale internationally, hire local entrepreneurs with a growth mindset who understand the local market requirements when expanding in other countries
👉 Manufacturers show increased interest in resilient supply chains due to Covid, geopolitical issues, and climate change. If you can cater to these trends, you can benefit from market tailwinds
Getting Xometry of the ground
Initially, Xometry focused on acquiring customers first, with the belief that suppliers would follow if there is demand
The company set up its initial platform and used AI to automate pricing, quoting and match making
Xometry started with fewer manufacturing technologies and expanded naturally over time
Scaling Xometry and its approach to Global Expansion
Xometry approached scaling by expanding through acquisitions and entering new markets. They’ve acquired Shift to enter the European market and also expanded into Asia and Turkey
Randy emphasized the importance of having local entrepreneurs in new locations to ensure successful internationalization
Xometry continuously evolves its platform to cater to larger companies and collaborative work inside enterprise accounts, and used AI for both pricing and optimizing customer-supplier matches
How to win large customers
Start small: often you need to earn the trust. So start to work with a single department or factory to build trust and prove value. Large companies would find Xometry online organically in the early days
Expanding relationships: deepening ties and scaling services within the organization, scaling across different factories at the same company
Collaborative features: offering collaborative features such as procurement options and customer-driven criteria for supplier selection in Xometry’s case
Ongoing support: continuously improve the product and stay close to your customers even as you scale. Xometry is optimizing the matchmaking for its customers continuously with the help of AI
Industry trends and future outlook
Manufacturers show increased interest in resilient supply chains due to Covid, geopolitical issues, and climate change. There is emphasis on the need for domestic procurement in the US and Europe
Skill shortage in manufacturing is a big problem. Randy highlighted the importance of community colleges and specialized programs for manufacturing
AI is the major technology shift in the next 5-10 years
Current dynamics of onshoring in manufacturing
There is heightened concern about the fragility of supply chains due to factors like Covid, geopolitical issues, and climate change
This has led to increased interest in resilient supply chains, including domestic procurement. This is not just in the US but also in Europe and globally
However, the extent to which companies are executing on this varies, with some still considering it but not yet ready to implement it
Approach to Hiring
Hire local entrepreneurs when expanding into new markets, ensuring they have individuals who understand the local culture and market dynamics
Randy is looking for people with a “growth mindset” and “entrepreneurial spirit”
While domain knowledge in manufacturing is beneficial, it's crucial for hires to have operational expertise and the ability to scale the business
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Very insightful and practical approach