#30 - Sheet Metal | Kenneth Cassel, CEO RMFG

Relentless 45min 5 min #30
#30 - Sheet Metal | Kenneth Cassel, CEO RMFG
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Summary

  • Kenneth Cassel is the founder of RMFG, a metal fabrication startup in Fort Worth, Texas, that makes custom sheet metal parts using fiber laser cutting and other fabrication processes. He’s building the company through a series of radical pivots, personal frugality, and deep customer relationships, with the goal of creating a beloved brand in manufacturing that combines software, automation, and hands-on fabrication.

Kenneth’s background and path to manufacturing

  • Grew up poor; his mother is from Peru and his father had 11 siblings and was homeless as a child
  • Originally studied music (saxophone, jazz band) at University of North Texas but dropped out when he realized music education career prospects were grim, especially after having his first son at age 20
  • Worked full-time doing maintenance (plumbing, electrical, HVAC) at a large private gas station chain, working 50+ hour weeks including weekends, holidays, and overnights
  • Taught himself programming after building a kegarator project with a Raspberry Pi, then went back to school for computer science in the evenings while still working full-time
  • Eventually landed a software engineering internship, quit his job and school, cashed out his 401k, and went all-in on the internship, which turned into a full-time role
  • Built a Vim teaching course that made ~$10K/month, then built a course platform for developers called Slip, which got him into Y Combinator in summer 2021 as a solo founder

The pivot journey

  • After YC, spent about a year on developer education but realized it wasn’t venture-scale, especially as AI tools like GitHub Copilot were emerging and threatening the market
  • Talked to YC partner Diana about shutting down or pivoting; decided to pivot rather than return capital
  • First pivot: built software for off-the-shelf robot arms, doing vision-based robotic control for manufacturers (text-directed pick and place), trying to rent robots as a service
  • Struggled to get traction with manufacturers who were bombarded with salespeople and hard to take seriously as outsiders
  • A pivotal moment came when a robotics founder friend was selling $3,000 industrial sheet metal mailboxes on Etsy but couldn’t find fabricators to keep up with demand, losing tens of thousands monthly
  • Kenneth and co-founder Alfredo started in a detached garage (described as a “shack in the wilderness” near a lake with deer walking around), doing robotic welding demos
  • Realized the real problem wasn’t robots vs. humans but simply finding reliable fabrication capacity
  • Decided to become manufacturers themselves: needed to buy a fiber laser cutter and move into commercial space

Betting the farm on a $200K laser

  • Had ~$300K left in the bank; couldn’t get financing for industrial equipment as a startup with no revenue and no manufacturing background
  • Bought a fiber laser cutter outright for ~$200K, leaving ~$100K in runway (roughly 4-5 months at their low burn rate)
  • The delivery day was the most stressful day of the startup journey: the rigger arrived visibly stressed and angry, swearing and throwing papers, saying the laser wouldn’t fit through the garage door
  • The laser barely fit through the garage door into the warehouse
  • The equipment sales reps were confused that they had no customers and no experience cutting metal
  • Spent the first month in an empty warehouse with just two desks, writing customer-facing software before any equipment arrived
  • First three months went well; raised a small round and have been live for about a year

Getting early customers

  • First customers came from Twitter and the YC network
  • First customer was Pete (now at Toolpath), who ordered through their API (the only customer to do so)
  • Also got customers from Instagram and word of mouth
  • Kenneth personally drove 200 miles to Austin to deliver parts to Pipe Dream’s Garrett in person, renting a truck to do it, because he believed in meeting customers face-to-face even for small orders
  • Emphasizes that manufacturing is relationship-based and that going above and beyond (like the YC “do things that don’t scale” ethos) builds lasting customer loyalty

Building the team and hiring

  • Found manufacturing talent through Twitter: hired John Rogen (who later went to SpaceX) after seeing him tweet “all I want for Christmas is a Trump fiber laser”
  • John’s replacement Ryan was found through John’s recommendation; they were on the same FIRST Robotics team that won Worlds
  • Looks for candidates with evidence of what they’ve built (personal websites, portfolios, camera roll of projects)
  • Uses FIRST Robotics and FSAE as strong signals for hardware talent
  • Notes that many mechanical engineering graduates don’t have portfolios, which is a red flag

Things going wrong and learning from mistakes

  • Early mistakes included sending customers the wrong material (stainless instead of what was specified)
  • Believes in being earnest, admitting mistakes immediately, and fixing them as fast as possible, citing research that a small problem quickly resolved leads to the best customer experience
  • Shipped a large order (50% of revenue at the time) to Beantock (YC company doing indoor vertical farms) in cardboard boxes instead of crates; FedEx dropped the parts off the pallet and destroyed most of them
  • Didn’t have insurance on the shipment; chose to remake all the damaged parts rather than deal with insurance claims
  • Bought a used PEM (hardness insertion) press from a metal shop two hours away that didn’t work; the seller claimed it worked but it had been sitting unused for 3-4 years with a jammed cylinder
  • Bought a new PEM press to replace it, but the delivery company cracked the touch screen on the new machine; Kenneth used his maintenance background to order a replacement screen and fix it himself
  • Buys used equipment at auction but has learned to test thoroughly in person before purchasing

Building in Fort Worth vs. Silicon Valley

  • Fort Worth is the second-largest manufacturing hub in the US with abundant aerospace and manufacturing talent
  • Industrial real estate is relatively cheap compared to SF or LA
  • Primary reason for being in DFW is family-based, but the manufacturing ecosystem is a strong secondary advantage
  • Believes you can build anywhere, citing Peter Beck starting Rocket Lab in New Zealand where there was no aerospace industry
  • Has a supportive landlord with a manufacturing background who likes “collecting interesting tenants” and has been pro-startup in resolving issues and doing tenant improvements

Scaling up and future vision

  • Started in a space that was too partitioned with too much office space; began taking over common areas for sheet metal storage, signaling the need for a bigger facility
  • Currently turning down a handful of orders per month (sometimes tens of thousands of dollars) due to lacking specific capabilities
  • Investment decisions are “vibes-based” rather than spreadsheet-driven: if a few customers ask for something, they bet more will want it, knowing some customers just go elsewhere without asking
  • Prime directive: make more parts, faster, cheaper, at higher mix and volume, continuously improving
  • Wants to build a beloved brand in manufacturing, like the well-known competitors that engineers love
  • Sees assembly, fabrication, and welding as the next frontier that hasn’t been offered with quick turnaround and instant quoting
  • Believes manufacturing is one of the most interesting and needed spaces right now, combining hardware, automation, software, and AI
  • Thinks the company could be generational; he could work in manufacturing for the rest of his life
  • The ceiling is super high: the largest manufacturing companies do tens of billions in revenue
  • Most exciting thing: getting new machines delivered by semi-truck, which he compares to the best birthday or Christmas present
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