Manufacturing technology startup PartsBadger LLC landed a five-year contract worth at least $13.8 million with Colorado-based mountain bike maker Yeti Cycles that will create Milwaukee-area jobs and accelerate PartsBadger's need for a larger local facility.
Cedarburg-based PartsBadger plans to hire at least 12 full-time employees to support the project and will spend an estimated $3.7 million on material, tooling and plating services from Milwaukee-area distributors, according to a recent announcement.
The company currently occupies a 15,000-square-foot facility and is looking for a new 50,000- to 75,000-square-foot facility in Washington or Ozaukee counties, PartsBadger CEO Roy Dietsch said. It previously planned to move in 2023 or 2024 but now PartsBadger expects to secure its new location by the end of the year, Dietsch said, adding that he wants to keep the company's operations under one roof.
Founded in 2017, PartsBadger is an online source for custom machine parts that aims to revolutionize manufacturing similar to the way in which Amazon Prime changed the market for consumer goods, Dietsch previously told Wisconsin Inno.
PartsBadger made last year's Inc. 5000 list of the fastest-growing U.S. companies and has grown to almost $20 million in annual sales, according to the company.
The new contract with Yeti Cycles will fuel PartsBadger's growth and help reduce risk for the company by providing a long-term contract, Dietsch said. PartsBadger will produce hardware for Yeti's high-end mountain bikes such as axles, nuts and bolts, he said.
In addition to the locally purchased materials, PartsBadger will also buy around $1.6 million in machinery from Illinois-based L.G. Evans & Co.
The Yeti Cycles partnership is unique because PartsBadger will leverage a cloud-based platform to give Yeti real-time insight and control into what's happening on the machine shop floor, Dietsch said.
"This should help reduce costs and supply chain risks, while creating a level of flexibility that is not possible with typical manufacturing arrangements,” he said in an emailed statement.
PartsBadger is hiring for roles including machine programmers, machine operators and production support, Dietsch said. It currently has around 50 local employees. The company is on track to go public within four years, Dietsch told Wisconsin Inno in March.
