Blockchain platforms and applications can be used to expand market opportunities for small- and mid-sized manufacturing companies, which provide the vast majority of parts and components to large manufacturers and are “the heartbeat of the industry.”
I recently interviewed Jeremy Goodwin, founding CEO of SyncFab for a follow-up discussion on what the San Francisco-based solutions provider has been up to in the last year. Readers may recall that we first spoke with Jeremy in early 2018 and learned quite a bit about SyncFab.
Established in 2013, SyncFab is a supply chain management solutions provider that specializes in outfitting manufacturing companies with the tools they need to buy and sell manufactured goods across the globe. It has been developing a Blockchain-based platform to connect small and mid-sized manufacturers and specialty machine shops with markets for their products – typically procurement teams that need to source custom or unique components. SyncFab’s cloud-based supplier network features buyer and supplier portals, quote comparison and approval tools, and order tracking features to help buyers and suppliers navigate each step of the transaction process. It recently added a parts library that allows OEM buyers to access every order for every part placed within their organization to drive visibility and efficiency into the ordering process.
Jeremy had a number of updates to share on our call – from recent partnerships, to product developments, to how tariffs and “trade wars” are impacting both, and finally to the generational shifts that are occurring in the manufacturing industry today. Here are some quick hits from our call:
- SyncFab Partners with the National Tooling and Machining Association (NTMA). The biggest news of the day was an announcement that SyncFab has partnered with the NTMA, a precision manufacturing advocacy group that consists of nearly 1,300 machine shops representing more than $30 billion of the industrial manufacturing base in the US. Jeremy repeatedly stressed the significance of this partnership – for SyncFab, NTMA members, and the manufacturing industry at large. The partnership effectively increases SyncFab’s user base by 1,300 manufacturers, expands the use of its Blockchain-based platform to a wider user base, and enables SyncFab to capture a larger share of the Blockchain market in the US (nearly 10% now). Partnering with the NTMA will enable more small and mid-sized manufacturers, which Jeremy called “the heartbeat for the precision supply chain of the OEMs,” to confidently access large companies like Boeing and Tesla, which he believes is ultimately going to drive the industry forward.
- SyncFab continues to build on its platform and develop newer capabilities. SyncFab has been focused on building out its baseline value-adding features to the Platform, and gearing up for more partnerships in the OEM market. It is now working with larger OEMs to develop Blockchain platforms to suit their unique needs, particularly in the automotive, aerospace & defense, medical, and general mechanical hardware industries. SyncFab has been adding features, like the parts library, when resources are available (indeed, Jeremy noted that its partnership with C-Block Capital has attracted more attention from prospective international clients, challenging it to prioritize and effectively allocate resources). SyncFab is also working to integrate these newer capabilities into existing platforms, make them commercially available to procurement departments at OEMs, and offer customizations, as well.
- Tariffs and the “trade war” are having a ripple effect from abroad. It’s a question on many people’s minds today: what effect do the tariffs and uncertainty over the so-called trade wars have on business prospects? For SyncFab, they have only accelerated interest in its solutions. For example, Jeremy says that more non-US manufacturers and manufacturing advocacy groups have become keenly interested in advanced manufacturing and supply chain management solutions. This applies to SyncFab’s general procurement platform, which continues to receive interest from procurement departments, which Jeremy believes is a good indicator of a strong economy. It also applies to SyncFab’s Blockchain solution, which continues to generate interest and investment from large OEMs. Here, SyncFab continues to build out customized features and use cases; and it is receiving more and more intensified requests from around the globe, but from China in particular. Although different contract laws, legal frameworks, and regulations between countries could raise the complexity and potential for risk in working with clients in newer markets, Jeremy stated that “there is industry promise of Blockchain smart contracts being able to effectively address legal variations in the virtual space in the future.”
- Manufacturing is at a crossroads right now, and it needs a big push from younger workers. One of the last things that Jeremy noted was just how important small and mid-sized suppliers and manufacturing companies are to SyncFab and to the larger manufacturing base. Without them, it becomes exceedingly difficult to sustain the larger parts and components supply chains that fuel so many industries and companies. Manufacturing has evolved quite a bit in the last twenty years, to the point where the saying, “It’s not your father’s GE” still rings true. But as the Baby Boomer generation continues to age out of the workforce (the oldest of them began retiring more than a decade ago), Millennials (Generation Y) and Generation Z need to step forward. Jeremy notes that “getting the convergence of veteran operators and a younger, highly-educated, driven generation of manufacturers coming in, along with these new technologies put together” could be what pushes this industry forward.
Final Thoughts
The manufacturing industry (and in particular, the US manufacturing industry) is a bellwether for the relative strength (or weakness) of the economy. A strong manufacturing infrastructure with access to larger OEMs, a long sales pipeline, and talented people are needed for the decade ahead. For these reasons, SyncFab’s partnership with the NTMA is big news, since it connects such a large portion of the US manufacturing industry together and enables small and mid-sized manufacturers to access more potential OEM customers. Blockchain continues to hum along, and the market is expected to grow in the coming years, as SyncFab continues to increase feature functionality and usability within its own platform. And as more Baby Boomers retire, the manufacturing industry is at an inflection point: it needs to do more to recruit Millennials and Gen-Z workers to replenish the workforce in what has become a highly-innovated and continuously innovating sector.
