On the line

Houston electronics manufacturing company gears up for growth

Houston-based MacroFab has created the Uber or Airbnb of electronics manufacturing. Getty Images

It takes an unnecessarily long time for electronic devices to get from idea to reality — and much of that is due to inefficiency in manufacturing. Just getting a prototype together takes weeks of back and forth between the engineer and the manufacturer.

"The business model for contract manufacturing hadn't changed in 30 years," Chris Church says. "It was phone calls, emails, going out and playing golf, going to lunch, and negotiating everything endlessly."

Houston-based MacroFab is addressing these antiquated and outdated ways of manufacturing and changing the way electronics manufacturing is done. For its revolutionary work, the company has consistently seen its revenue at least double — sometimes tripling or quadrupling — every year, and projects to at least triple in 2019.

Addressing an underserved market
Church — who has a background in hardware development, specifically within robotics — created MacroFab in 2013 and launched the platform in 2015. Misha Govshteyn joined the board in 2014 and became CEO last summer. The duo co-founded cloud-based security-as-a-service company, Alert Logic, in Houston in 2002.

Using its custom software, MacroFab enables customers to upload their designs through the website, where they can then receive projected timeline and pricing information from the get go. The company has its own manufacturing area in its office for prototypes and small orders, but its network of large manufacturers is a key part of the MacroFab's growth equation.

The company has about 20 manufacturing plants as partners that can pick up manufacturing jobs from MacroFab customers when the plant has space on its lines up for grabs. Rather than let available capacity go to waste, these plants can easily pick up the design and materials to start production.

"It's not dissimilar to what Uber is doing with cars — there's a lot of people with cars that could give you a ride if they knew you were out there," Govshteyn says. "It's that matchmaking function is essentially what we're doing with our customers."

The manufacturing partners benefit from jobs they otherwise wouldn't have, and the MacroFab customers get access to a plant that they didn't have to do the legwork to find. Govshteyn says a he's heard horror stories from people who had orders that were unceremoniously dropped by a manufacturer because another one of its clients just placed a large order.

"That shouldn't happen. If a factory gets too busy, it should be easy enough to take that job and move it somewhere else," Govshteyn says. "But, right now, there's not a way to do that."

Using cloud technology, the MacroFab platform can easily share the design and translate it to any given factory, Church says. They also have a technology that combine smaller orders together so there's no wasted resources, which brings down the cost for the customer.

While usually a company might have to find a new manufacturer as they scale up and start making larger orders, MacroFab customers don't have to start from scratch to find a new plant that can take their order — MacroFab will do the matchmaking for them.

"We've created and are continuing to build a marketplace for excess manufacturing capacity," Church says.

MacroFab owns the customer experience and the sales aspect — ensuring a more positive and consistent experience — while the manufacturers can just take the jobs and go.

Scaling up
The manufacturing marketplace is a newer focus for MacroFab — the company just launched it in beta this year — and is a big proponent of the company's growth. Before, the company was limited to what it could produce in its own factory taking on prototype and small orders. Now, with access to the manufacturers, the company has served 1,700 customers, building 500,000 units for about 4,000 different products. Those figures, Church says, are scaling up so rapidly as they expand to new partners.

"This is the first quarter where more gets produced outside of our factory than inside of it," Govshteyn says. "By this time in Q1, 75 percent of our revenue will [come from outside manufacturing plants.]"

Since manufacturing plants haven't historically collaborated, Govshteyn says the reception from manufacturers has been "cautiously optimistic." But then they realize they are getting customers for free — all they have to do is meet the requirements and deliver on time, he says.

"It's great for them to see that their factory is only half used, but then they can fill it up with jobs from MacroFab," Govshteyn says.

Houston has been a great city for MacroFab with its port manufacturing and logistics, two things Govshteyn says MacroFab is focusing on.

"At the end of the day, we're a manufacturing company, and I think we'll dabble in logistics," he says. "There's a lot worse places to start a logistics-heavy company."

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Building Houston

 
 

What's an employee group and why do you need to know about it during Hispanic Heritage Month? This Houston expert explains. Photo via Getty Images

Making a name for yourself in corporate America is no easy task. It is especially hard if you are the first generation in your family to attend college in this country and the first to take a stab at climbing the corporate ladder. The secret behind those who successfully make it to the top is access to a strong support group.

Finding the right support system, one that provides professional and personal mentorship and one that you identify with culturally, can help you navigate the business world and help you achieve your career goals.

Many Hispanic/Latino professionals have found that support system in employee groups, or EGs.

What are EGs and how can they help Hispanic professionals succeed?

EGs are employee-led groups that foster inclusivity and build community. The purpose of the group is to provide personal and professional support to its members, who usually share certain characteristics in common – like being Hispanic, or those who simply have interest in learning about a culture that is not unique to them.

AT&T has 14 EGs, including HACEMOS, which was established in 1988 and is dedicated to supporting Hispanic employees and the communities they live in. There are 36 HACEMOS chapters across the country supporting more than 8,500 members. The Houston chapter currently supports 278 members – all in different phases of their career.

HACEMOS members believe that “Juntos HACEMOS más,” which means “Together we do more.” Under that guiding belief, members work together to support each other in advancing their careers. Through HACEMOS, AT&T employees can participate in various professional development learning opportunities and have access to one- on-one mentorship sessions with members from the leadership team.

For many members, the group offers a safe environment to engage and learn from other professionals who understand their personal and professional hurdles from a cultural point of view.

At a personal level, the support I receive from HACEMOS has helped me to better understand and be proud of my heritage. HACEMOS has embraced my “Latina” identity, encouraging me to continue using my Spanish skills to serve our Latino customers within AT&T.

EGs provide members with a sense of community and belonging. 

Most EGs have a community aspect to them that allow members to work together to address needs in their communities. HACEMOS members in Houston take pride in organizing, volunteering, and participating in various initiatives that provide support to the most vulnerable members of their community.

This year, in honor of Hispanic Heritage Month, the Houston HACEMOS Chapter will be hosting events throughout the city, helping support our youth and instill the importance of continuing their education and striving for success. Our national group is actively volunteering on efforts to help close the digital divide (the gap between people who have reliable internet access and those who do not) which is more likely to impact people of color, especially Hispanic families.

EGs create a win-win for employees and employers. 

EGs are beneficial to employees and employers. It’s true, EG members are engaged and develop strong relationships with their colleagues from other departments resulting in a collaborative environment.

Also, the company benefits from the knowledge and skills EG members gain through the various workshops and learning resources. In addition, EG members serve as brand ambassadors in the community for the company while they participate in community volunteer events.

So, if the company you work for currently does not have an EG you identify with, it’s easy to build your case to launch one. And if your company has an EG you identify with, then I encourage you to join it today – I can ensure you, it will be a rewarding experience that can help you advance your career.

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Erika Portillo is the Houston HACEMOS president for AT&T.

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