Max Egdorf’s custom automation manufacturing startup is still operating out of his two-car garage, but that’s only because real estate is expensive now. He says there's more potential work than he would be able to handle, and he doesn’t foresee that slowing down any time soon.
Egdorf has worked on about 25 projects, some of which take six months to a year to complete, since he founded Forged Automation in 2019. Automation manufacturers use industrial robots to make products with processes that would typically be too daunting for humans to handle.
The Forged Automation website hasn’t been published yet and marketing has been limited, so all of his customers have come from word-of-mouth, he said.
“I've been super impressed with the demand. For me, that’s a challenge as well. I am trying to keep myself and the contractors and everybody busy but not overburden us and not set us up for failure,” Egdorf said. “Especially with Covid, it was kind of the perfect storm for automation companies because it really showed how vulnerable human labor really is.”
Egdorf noted that the founder of automation company Keyence, Takemitsu Takizaki, is now Japan’s richest person with a net worth of $38.2 billion.
“Forged Automation probably will never be that big, but it kind of gives you a representation of where it can go.”
Egdorf's s first engineering job was at Precision Valve & Automation, which is now located in Halfmoon. He gained skills there focused on machine design and machine debugging. After more than seven years there, he saw a gap in the market and decided to fill it.
Many established automation companies typically focus on a single type of process, he said. That often leaves few manufacturing options for companies that need unique parts made – and those are the customers for Forged.
“Some of these larger automation companies are very focused on their platform. If your product doesn't fit the mold … that's really where Forged Automation shines, is in that niche market,” Egdorf said.
Egdorf got his first contract through the online platform Upwork, and that’s when he saw there was plenty of similar work to pursue.
“I realized that there's a pretty large demand for this custom automation space," Egdorf said.
Depending on the customer’s needs, Egdorf offers design, assembly, support and training. For some customers, he just completes designs and gives them a drawing package.
The plan is to get a commercial space for the operation. At that point, he’ll be able to hire employees and expand the business. Right now, he works with contractors when he needs extra hands.
“With the market right now, it's crazy, so I'm doing everything I can to postpone that and try and use space as intelligently as possible," Egdorf said.
Being a startup, Egdorf said he’s pretty clear with customers about how cash flow works. The best customers are those who can give him a little slack in the beginning, he said.
“I've been trying to actively keep my costs low, because I know that cash flow problems are the number one thing that ruins a company. You don't have cash flow, you’re in trouble.”
