October 8, 2024 • 23 mins
In this episode, Ryan Garland, founder of Paradyme, dives deep into the evolution of steel manufacturing with industry expert Ryan Basnardo. Known for his roots in off-road racing and now a leader in advanced manufacturing, Basnardo discusses his decision to move his cutting-edge manufacturing facility to Lake Havasu. The conversation highlights the impact of technological breakthroughs such as CNC machines, fiber lasers, and robotic towers, transforming steel production into a faster, more precise, and eco-friendly operation.
The episode explores not only the shift from traditional labor-intensive processes to efficient, high-tech production methods but also the vital importance of cultivating a strong company culture. Basnardo shares insights on how investing in top talent, fostering employee development, and building in-house capabilities can drive success and overcome challenges like project delays and reliance on overseas materials.
The discussion wraps up by looking at the opportunities for future collaboration, expanding services to support other operators and developers, and the ripple effect of these innovations on local employment and the community. This episode is a must-listen for anyone interested in how strategic innovation can revolutionize traditional industries and spur both economic and community growth.
Tune in to discover how technology is reshaping the future of manufacturing!
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Episode Transcript
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Ryan (00:00):
Hey everybody, ryan Garland here, founder and
chairman of Paradigm.
Thank you very much forwatching Paradigm Shift Podcast
and in fact, ryan is building usa podcast table all custom and
he's going to be our mainsponsor for our podcast.
So I'm really excited to havehim here because I think this is
going to be very enlighteningon what it is we're doing for
Paradigm as a firm, movingforward and developing our
(00:22):
projects and how we want to leaninto the manufacturing side.
So before I can I even chalk itup, how do you pronounce your
last name again?
Basnardo, basnardo, basnardo.
Yes, basnardo, so don't hold meto that.
Sorry, I'm not the best atnames, but his name is Ryan, so
I better never forget that.
You got that part yeah.
I never forget that.
So real quick, so it's kind ofcool.
I want to tell you maybe Idon't think I told you a story.
(00:43):
So there's a gentleman by thename of David Colley.
David used to be my oldvideographer.
His family knows you fromCorona, okay.
And so when I was posting youon my social media, his brother,
aaron, and both David texted meand like hey, we know that guy,
we've been looking up to thatguy because they're now building
barn stuff for like all therails for the horses and cattle
(01:04):
and so forth, and so he'sbuilding all that stuff and I
guess apparently they've beenfollowing you forever because
they're from Corona too.
Yeah.
And so they're like he's agodfather in the industry and
I'm like that's good to know.
So, right out the gate, greatreputation just from a friend of
mine, you know, and Collie usedto work for me, so he was, I
mean, nicest kid, very savvy,very smart.
That was my first full-timevideographer and you know, to
hear him say that about you wasreally cool because I I'm
(01:27):
watching his business grow andhe's in that space at some level
.
So but yeah, why don't we really?
The idea is just to kind ofhighlight who you are, your
background, your level ofsophistication to my network and
the objective is to highlightwhy paradigm is stepping into
this realm and what we're seeing.
That's going to be a trendyslash, good investment moving
(01:50):
forward for our investors, buthow we're going to create
sustainability as a firm too.
But manufacturing overall is adying breed in some cases here
in the country.
You don't have to go politicalon it, but you're seeing a lot
of manufacturers closing down,especially steel manufacturing.
So, before I go far, a littlebit about you, your background,
how long you've been in thespace, your level of
(02:12):
sophistication as far as whatyou have going on now here in
Lake Havasu.
Well, it's funny you mentionedthe Cully brothers because what
got me into manufacturing wasoff-road racing.
My family I come from a longline of metal just my
grandfather was a tool and diemaker machinist.
My father was a machinist andretire, both retired from that
industry, you know.
So it was always in my blood.
(02:33):
But I started out in business.
You know, in life and throughbusiness I started in off road
racing.
That's where I know a lot ofthe video people and whatnot.
And through off-road racing andracing in general we developed
advanced manufacturing facilityand that led me here to Lake
Havasu.
I've been coming here for 35years.
It's been a place that's nearand dear to my heart.
(02:55):
And about five years ago now wemoved our manufacturing
facility from SouthernCalifornia, corona, california,
to here in Lake Havasu.
We repurposed an old Kmartbuilding here that's 122,000
square feet and my life's workis machinery.
So the manufacturing business inall has changed quite a bit
over the years becausetechnology has obsoleted.
(03:18):
A lot of what's happened inmanufacturing, especially in the
last decade, happened inmanufacturing, especially in the
last decade.
You know, advancedmanufacturing machines have
really redefined how wemanufacture and are able to make
things.
So a lot of technology has puta lot of people out of business
because they haven't kept upwith the times.
So we're really happy to beinvolved with, you know, all
(03:41):
forms of the technology in termsof all the computer science and
what they bring to the table.
And then all of our machines areall CNC machines and whatnot in
our facility here in LakeHavasu.
So we have a lot of capacity atour facility here which we're
excited about.
You know all kinds of newbusiness in terms of that.
But really manufacturing steelmanufacturing today can happen
(04:06):
much faster than it than it didin the past.
Previously steel manufacturing,you know you had to to punch a
panel out, you had to make, youknow, a dot you know, and this,
this, you know that has to bedesigned.
You know that piece, thattooling has to be designed and
then made To create a whole tooljust for that part.
100% for each part.
Yeah, Now you can.
(04:26):
You know we have digital pressbrakes and you know fiber lasers
and robotic towers and thingsthat can make parts and repeat
those parts as if you did havethe tooling one-off tooling to
make them, and it's as simple asbeing able to have computer
operators to draw that part tothe tolerances and your machines
(04:46):
can kick it out.
Now there still is an absoluteplace for a machine shop, and
that's different from what I'mtalking about.
The machine shops haven'tchanged very much at all, but
when you can incorporate themwith the sheet manufacturing and
the other steel manufacturingand robotic welding and all
these other things, now you canreally bring a complete product
(05:09):
together as a whole and you cando it rapid you can do it in the
masses in the masses andrapidly, and the you know the
ability to replicate that partover and over again, the exact
part without you know these,these crazy tooling is is really
the key and and what's changedin the last decade with, with
steel manufacturing.
So I think that has a lot tolend you know to it.
(05:30):
The fact that that you knowgovernment programs rapidly are
changing, that has a lot to lendto it, you know so.
And then there's, you know mostof what you think is a steel
manufacturer today is really abroker.
There's so many brokers in thespace it's unbelievable.
So brokers go to brokers go tobrokers.
I can see off on that.
I keep going yeah.
We see a lot of that, you know.
But you know it's somethingthat we have a passion for and
(05:53):
we love to build product andbring product to the to the end
user, to the consumer, and welike like to do it fast.
So you know we made aincredible investment here in
Lake Havasu to be able to dothat on a rapid level.
And you know some of the brands.
You know one of the majorbrands that is sponsoring your
podcast today is our 10-day doorbrand.
So we looked at steel doors andyou know steel doors used to be
(06:17):
all built, was made anddesigned in America.
You know used to be all bebuilt here out of tube steel and
you know in the last 15 yearsthat's changed a lot of the
almost 99% of those thatproducts imported you know.
So we, we kind of brought back acomplete new design to the
steel door and made it betterthan ever before.
I think I have a steel door inmy building and I think my
(06:39):
builder was using you for allhis doors, so I was already
opening your doors before I metyou man, that's great.
I appreciate that Hope you'reenjoying it.
I'm like the guy who built thedoor.
I'm so excited, right.
Doors Sounds silly, buteverybody needs a door.
Let's be honest, man, when Igrabbed that door, even my wife
did.
She's like this is a cool door.
I'm like right, this thing.
It took my whole body weight toopen but man, it felt masculine
(07:01):
, masculine, right, it was great.
So there's really true to it.
Like the door is cool doors,man.
Thank you, I appreciate it.
But anyhow, you know, I reallylike and our team.
You know when I say I, it's we.
We have a great team.
You know, yeah, I have a mastermachinist that runs our
machining crew and our machineshop and really does overlooks
all of our machinery in the shop, eddie Farrington, which is
(07:22):
just an absolute asset to ourteam.
You know somebody that Iactually found here in Lake
Havasu, so or he found me, oneor the other, I think it was he
found me but absolute asset toour team and really our biggest
asset is our people.
You know the people that wehave and the team that we have.
It's by far, and I've heard yousay the same thing about your
team.
So you know, I enjoy workingwith you.
(07:43):
That's where I think thealignment is, Even when you and
I were talking about ourcontrollers you know the people
who do all our management, allour bank accounts and so forth.
you know, that kind of leadsinto another question that I
think a lot of people are justbypassing on other podcasts,
which is labor.
You know that is a problem.
People have concerns that herein Lake Havasu that's a big
concern with certainconstruction trades and I, you
(08:04):
and I discussed this.
As soon as you expressed whatyour practices are, I
automatically knew you got ithandled.
So if you don't mind, let'stalk about that, because I want
people to know the differencebetween you and what a lot of
these other manufacturers aredoing, and by just kind of your
practice I think people will seeit.
Well, my response in labor is wehave to pay at the top of the
labor scale.
If you want the best, you haveto pay for the best.
(08:26):
If you expect the best, youhave to pay for it.
And you know you have to havethe proper benefits and the
facility for individuals to growand flourish in.
And you know I'm not afraid ofhiring somebody without any
skills and to give them thoseskills you know.
But you know the benefits arekey for labor.
A future is key.
Full-time work is key, you knowcaring about, you know your
(08:51):
team and their family and evenif you don't take a personal
interest in it, having you knowthe systems and you know the
policies and the procedures setup for them, I think is absolute
key.
I mean, people are.
You know, without peoplenothing works.
You know.
I, you know, I've learned justeverybody has hardships in life.
(09:12):
You know, when you, you knowyou're really trying to work to
make enough money to go home andhave some sort of a decent life
.
You know and give to the onesthat you love.
Yeah, I really appreciate thatpart of the conversation because
when we first talked, there'syour culture inside your company
.
When I walk into any company,any office, what have you?
I could feel the energy.
(09:33):
Sure.
And that's just kind of overtime, me being in so many
different rooms around the worldand because I naturally talk to
people about money, that'susually the most sensitive
subject, sure.
So I feel like I have anability to read people and their
energy and body language, andthat's one of the great things
that I felt about yourenvironment is, obviously you're
(09:55):
scaling up to have north of 300employees, but to see how they
are all operating and how theyall, how cool they are, I mean,
all the guys were there on asaturday afternoon.
The guys are coming back andlike we'll be here Sunday
morning.
Like man, they were likeexcited to come on Sunday
morning.
When do you find guys like thatanymore?
You know, like can I bring themover here here and there?
(10:16):
But it's true, to be able tohave that environment and people
want to work, I think is reallykey.
But that does tell what kind ofproduct you're going to create
and perform.
But are you going to be able tohit your timelines?
That we're all leaning into?
You know, and that's where Ithink a lot of operators like me
need to touch on more podcastsif they're even going to go down
this road, meaning you knoweverybody that you're going to
(10:38):
align with right, like when Ilooked at this, there's about
300 people that were employingin this one project.
When you look at everybodythat's involved at some level
from our subs to architects,engineers, everybody then you
try to understand every companyunderneath that.
And right now I think intoday's market, you need to pay
attention to that more Because,for example, my architect or my
engineer or my electrician, youknow, one of the concerns are
(11:02):
like are you grandfathered in ata supply house?
You know how, what size ofbusiness do you have?
Are you going to get certaintreatment to get certain
materials?
Like?
Those are conversations thatpeople need to have probably
more often.
I'm watching a lot of operatorsnot know how to how to really
vet that.
So you know, syncing up with agroup like yours not only your
track record 30 years right Plus, like you said, your family but
(11:26):
the way that you operate, and Iwant you to talk about the
level of cuts and calculationsand a little bit more about your
operation.
Manufacture all of ourbuildings, especially the barn
caves, when we're thinking, look, we want to do 35 locations, we
want millions of square feet.
(11:46):
You know that is a.
You need to look all the waydown to that level.
That's the detail that needs tobe implemented right Is down to
even the manufacturing side,and that alone is a problem, you
know.
So let's go into.
You know the level of cuts andyou have aerospace contracts and
then let's talk about justoverall, the industry itself and
(12:10):
the problems that are being had.
Sure Well, timeline-wise.
The way I look at timelines,ryan, is they're objections that
just need to be overcome.
So if we care and we put ourthought process into it, we can
always overcome them, as long aswe have the proper facility and
the assets to do so.
Now, one of the things about meis I do everything in-house,
(12:37):
and I mean everything 3DCAD, youknow I have a whole team that
does that.
We operate an up-to-date solidwith 12 seats of solid works
that we operate to exporting thenumerous of those designs to
the numerous different programsthat run different machines,
whether it be in the G code inthe machine shop, you know, at
the cutting levels, to themachinist that Eddie runs and
(12:59):
whatnot that we spoke of earlier, whether it be to the advanced
manufacturing steel equipment orto the coating, you know we
have the ability to scale up ordown at any, you know, at any
level.
So if I have a project thatneeds a coating and I'm going to
wait on a coater or a thirdlevel, you know, vendor on
something, I typically willbuild an oven in a spray booth
(13:19):
to get it done.
Right.
So you know they're justobjections to.
You know that need to beovercome.
That's why I've made such anincredible investment in our
team and our facility here thatI'm not at capacity at, because
I've made such an investment inthis.
So that's where I really enjoyour conversation and watching
you with your projects and, youknow, because I think that if I
(13:40):
can align myself with somebodylike you and bring those
projects to fruition much faster, I think the whole world wins.
We're having problems.
For example, let's talk aboutthe equipment we're talking
about.
Think about buying.
You said on average and I agreewith you that we have roughly,
let's say, 54,000 pieces here atParadigm Storage, 225,000
(14:02):
square feet.
The equipment that we'reworking on getting is going to
produce 68,000 cuts a month.
Well, that's one piece of thefive equipment.
So, in essence, really whatwe'd be able to do you have
about 26,000 pieces in thiswhole facility of one of the
machines that could produce64,000 pieces?
(14:24):
Got it, got it.
So in essence, with themachinery, we'd be able to build
two of these facilities a monthin a in a month is a 22 day
500,000 square feet of yeah In amonth, and it's just with these
beginning machine, you knowmachines that we're talking,
that we have conversation about.
There's more out there but this,there's so much more to our
(14:45):
product because, you know, Imean, look at all of our, all of
our walls.
I mean we're, you know, fullyinsulated.
You have panels on both sidesof the studs.
I mean there is a lot more herethan most storage there really
is.
So that'll give you an idea.
One of the things that I build,I mean it's really.
I mean, if you look around andthis facility in particular, the
(15:06):
spacing, you know really theease of use of everything and
the quality.
Like you said, everything'sdouble insulated and this is a
harsh environment where we arehere.
Well, right now it's 108 outside.
Right.
It's 74 degrees and we're doingpretty good.
Yeah, we're doing pretty goodinside here in one of these
facilities.
So you know when, when somebodyhas a two and a half million
dollar boat or you know theyhave these big, they like to
(15:28):
have it in this type of facility.
So and they need to.
They have to, yeah, or it'sruined.
They're ruining your stuff.
Yeah, it's literally a trueinvestment to keep your toys, or
even your toys, are investmentsyou know, indeed, so you gotta
you know, indeed, indeed, so yougot to take care of it.
But anyways, keep going.
Sorry, no-transcript that, butyou know, I think really what
(16:12):
for us, we see a lot ofbottlenecks and and the
materials and so forth with, uh,with all these buildings, and
the delays we've had have been,I mean, you know, if we want to
do millions and millions ofsquare feet, that we can't have
those issues, yeah, and and youknow, at the same time, we want
to be able to deliver resultswhen we say we're going to
(16:33):
deliver something.
I don't?
I hate feeling like I got torely on somebody else and then
that person's not being honestor truthful, because us, as an
operator, it's hard to really behonest with everybody else when
we're just relaying the message.
So I'm kind of getting to thepoint where I'm like, okay,
we're already seeing bottlenecksand this is kind of becoming
more problematic for everydeveloper and operator that I'm
talking to, that is, inself-storage metal buildings in
(16:56):
any shape or form.
So I'm looking at it going well.
Not only can we stop thebleeding and us not have so many
issues and bottlenecks onmaterials if we are
manufacturing our own buildingsand obviously saving money and
making better investments and soforth, bringing down risk.
Meeting timelines.
Timelines and everything else.
And in fact I mean we can get toa point where we are taking our
(17:18):
pro forma and cutting it inhalf because I'm designing
everything around the issuesthat we're already seeing in the
industry.
Sure, in half because I'mdesigning everything around the
issues that we're already seeingin the industry, If I can say
okay, well, those issues don'texist because we're
manufacturing our own buildings.
Now our profit goes through theroof because I'm cutting my
timeline a lot.
That's a different level.
And getting the product that youinitially intended to get.
Yeah, this is more institutionalgrade.
Go get $100 million line ofcredit, $200 million line of
(17:40):
credits.
These are the practices andstrategies that you have to
implement when you're looking atgoing big.
So, on top of revenue,additional revenue stream.
So now I can go to all theseother operators and builders and
developers that I have greatrelationships with and go hey, I
know you're having issues, butwe're manufacturing buildings.
I don't have enough.
You and I have equipment thatcan handle way more than what
(18:04):
I'm needing, so let's producethat on top of you know, now
they can go back to having astandard, regular business model
too.
Because, again, the biggestproblem right now in this
industry as an operator, from mystandpoint, is getting this
material on time at a good, at agood price.
A lot of prices continue toadjust and that's okay and we
get all those.
(18:24):
But if we'd like to know kindof what you're getting yourself
into early on, so here's yourdeposit, here's what it's going
to be, guys like us, go buy allthe material.
That price is fixed until wedeliver, you know.
But that's a, that's a.
That's a big help, you know forguys like me.
It's funny to hear you say thattoo, because really what lies in
the middle of that is multiplebrokers.
So that cuts into yourprofitability, that cuts into
(18:46):
your timeline.
I mean both.
It's wild how much these brokersare making.
Like.
I'm not trying to do.
Yeah, everybody's got to make abuck.
This is business.
But these brokers, I mean, I'mthinking we're probably paying
35%, 40% more than what thatbuilding could cost us.
Yeah.
Just with broker fees than whatthat building could cost us?
Yeah, just with broker fees.
Yeah, if we continue down theroad that we're going down,
(19:09):
you'll really have a 122,000square foot manufacturing
facility.
That will be able to cut a lotof the brokers out of all the
product.
Because, like I said, we don'tjust build steel buildings like
most steel buildingmanufacturers build, we build
everything.
Yeah, so we have you alluded toit.
We have a full 9001 ISO machineshop, you know with.
(19:31):
We have six vertical mills, wehave two, eight access lays.
We have, you know, a multiplemultitude of machines that can
build any and every product.
So, and then you know, all ofthe measuring machinery to make
sure that that product's beingduplicated.
Then we have an enormousadvanced manufacturing facility
in that we have a big fiberlaser tower, robotic machines
that can run day and night toprovide, you know, let's say,
we're doing roll-ups we weretalking about earlier A lot of
(19:54):
what hold that up isn't thepaneling, it's the hardware.
Yeah, so the garage doors yeswe're able to create that
hardware right in-house ourself,and you know our machines can
run overnight, yeah, you know.
So we can literally makehundreds of thousands of parts
monthly in the facility.
But I think what the biggestpart is is what's lost in
translation between themiddlemen, you know, and that's,
(20:22):
I think, talking to so manyinvestors, and especially you,
and really getting in tune toyour operation.
That's really, I think, where Ican really shine when we're
working together, and I thinkhow you can really shine for
other investors is there is nomiddleman.
They're dealing with one personyou, me and you.
Yeah, well, you're dealing withme and we're us, you know.
So it's real Order some morespools.
dude, we got another order.
Let's go.
(20:49):
I mean, it's not that difficult.
No, it really isn't, but thatyou know all the way down to
just to be a little more, justfull disclosure here.
You know, we just had someissues with one of our buildings
and the load calcs weren'tright.
Yeah, and you know, we'readding some more material and
come to find out, the brokerthat we're working with was even
outsourcing the engineeringyeah so the original engineer
that stamped and stamped thebuilding originally for the
approvals.
they didn't go back to that sameengineer to do the additional
load that we were putting up onthe work route and it's like and
(21:10):
now so, of course, that newengineer creates a lot of
liability for them.
So of course they're not goingto put their name on that and it
just became more and moreproblematic.
So, even from an engineeringside, which is also a dying
breed, bad fast, big time.
I think the idea is for us togo in and acquire that, which
also helps.
Again, you know other operatorsand developers saying, listen,
(21:30):
not only we manufacture, we gotengineering for you here
in-house and they work for usexclusively so you can have open
dialogue with them.
You know that type of stuff tokind of help these guys get
through it.
You know, and obviously havingrob on the architectural side, a
lot of these things, we I thinkultimately we can start helping
other developers and buildersbuild their dreams and actually
get the buildings and then againthe store or the garage doors.
(21:52):
That's another huge piece ofyou and I were just talking
before the podcast.
I know builders right now thatare building single family homes
but can't get their garagedoors and can't get their COO
and sign off on the house to beable to sell it because they
can't get a garage door.
I mean that's a simple piece,but you know again you and I
talk about it offline the amountof problems that we're seeing
(22:13):
on the manufacturing side andthey're relying on so much
material coming overseas.
That is a problem.
So we can fill a niche andcreate additional revenue
streams which protects thecorporation and the brand, and
then bring in all kinds ofwonderful things here.
You're one of the top 10employers here now.
Indeed yeah.
So just the support and thecommunity support and help.
(22:34):
It's just like I say all thetime, if it's a win-win, I think
that's the way that makes anyinvestment in any relationship
flourish.
Yeah, I couldn't agree more.
I think that was really kind ofit that I wanted to touch on.
I think there was, and I don'twant to.
We don't want to spill thebeans too soon.
We'll do a second podcast forsure, but other than that man,
is there anything else you wantto add?
not unless you can think ofsomething.
(22:55):
I think I'm good man, soperfect, right on well, thank
you, guys, all very much.
We'll do a second one and athird one, I'm sure, especially
when he brings the new podcasttable over, as they are our
sponsors.
Hey everybody, ryan Garland here, founder and
chairman of Paradigm.
Thank you very much forwatching Paradigm Shift Podcast
and in fact, ryan is building usa podcast table all custom and
he's going to be our mainsponsor for our podcast.
So I'm really excited to havehim here because I think this is
going to be very enlighteningon what it is we're doing for
Paradigm as a firm, movingforward and developing our
(00:22):
projects and how we want to leaninto the manufacturing side.
So before I can I even chalk itup, how do you pronounce your
last name again?
Basnardo, basnardo, basnardo.
Yes, basnardo, so don't hold meto that.
Sorry, I'm not the best atnames, but his name is Ryan, so
I better never forget that.
You got that part yeah.
I never forget that.
So real quick, so it's kind ofcool.
I want to tell you maybe Idon't think I told you a story.
(00:43):
So there's a gentleman by thename of David Colley.
David used to be my oldvideographer.
His family knows you fromCorona, okay.
And so when I was posting youon my social media, his brother,
aaron, and both David texted meand like hey, we know that guy,
we've been looking up to thatguy because they're now building
barn stuff for like all therails for the horses and cattle
(01:04):
and so forth, and so he'sbuilding all that stuff and I
guess apparently they've beenfollowing you forever because
they're from Corona too.
Yeah.
And so they're like he's agodfather in the industry and
I'm like that's good to know.
So, right out the gate, greatreputation just from a friend of
mine, you know, and Collie usedto work for me, so he was, I
mean, nicest kid, very savvy,very smart.
That was my first full-timevideographer and you know, to
hear him say that about you wasreally cool because I I'm
(01:27):
watching his business grow andhe's in that space at some level
.
So but yeah, why don't we really?
The idea is just to kind ofhighlight who you are, your
background, your level ofsophistication to my network and
the objective is to highlightwhy paradigm is stepping into
this realm and what we're seeing.
That's going to be a trendyslash, good investment moving
(01:50):
forward for our investors, buthow we're going to create
sustainability as a firm too.
But manufacturing overall is adying breed in some cases here
in the country.
You don't have to go politicalon it, but you're seeing a lot
of manufacturers closing down,especially steel manufacturing.
So, before I go far, a littlebit about you, your background,
how long you've been in thespace, your level of
(02:12):
sophistication as far as whatyou have going on now here in
Lake Havasu.
Well, it's funny you mentionedthe Cully brothers because what
got me into manufacturing wasoff-road racing.
My family I come from a longline of metal just my
grandfather was a tool and diemaker machinist.
My father was a machinist andretire, both retired from that
industry, you know.
So it was always in my blood.
(02:33):
But I started out in business.
You know, in life and throughbusiness I started in off road
racing.
That's where I know a lot ofthe video people and whatnot.
And through off-road racing andracing in general we developed
advanced manufacturing facilityand that led me here to Lake
Havasu.
I've been coming here for 35years.
It's been a place that's nearand dear to my heart.
(02:55):
And about five years ago now wemoved our manufacturing
facility from SouthernCalifornia, corona, california,
to here in Lake Havasu.
We repurposed an old Kmartbuilding here that's 122,000
square feet and my life's workis machinery.
So the manufacturing business inall has changed quite a bit
over the years becausetechnology has obsoleted.
(03:18):
A lot of what's happened inmanufacturing, especially in the
last decade, happened inmanufacturing, especially in the
last decade.
You know, advancedmanufacturing machines have
really redefined how wemanufacture and are able to make
things.
So a lot of technology has puta lot of people out of business
because they haven't kept upwith the times.
So we're really happy to beinvolved with, you know, all
(03:41):
forms of the technology in termsof all the computer science and
what they bring to the table.
And then all of our machines areall CNC machines and whatnot in
our facility here in LakeHavasu.
So we have a lot of capacity atour facility here which we're
excited about.
You know all kinds of newbusiness in terms of that.
But really manufacturing steelmanufacturing today can happen
(04:06):
much faster than it than it didin the past.
Previously steel manufacturing,you know you had to to punch a
panel out, you had to make, youknow, a dot you know, and this,
this, you know that has to bedesigned.
You know that piece, thattooling has to be designed and
then made To create a whole tooljust for that part.
100% for each part.
Yeah, Now you can.
(04:26):
You know we have digital pressbrakes and you know fiber lasers
and robotic towers and thingsthat can make parts and repeat
those parts as if you did havethe tooling one-off tooling to
make them, and it's as simple asbeing able to have computer
operators to draw that part tothe tolerances and your machines
(04:46):
can kick it out.
Now there still is an absoluteplace for a machine shop, and
that's different from what I'mtalking about.
The machine shops haven'tchanged very much at all, but
when you can incorporate themwith the sheet manufacturing and
the other steel manufacturingand robotic welding and all
these other things, now you canreally bring a complete product
(05:09):
together as a whole and you cando it rapid you can do it in the
masses in the masses andrapidly, and the you know the
ability to replicate that partover and over again, the exact
part without you know these,these crazy tooling is is really
the key and and what's changedin the last decade with, with
steel manufacturing.
So I think that has a lot tolend you know to it.
(05:30):
The fact that that you knowgovernment programs rapidly are
changing, that has a lot to lendto it, you know so.
And then there's, you know mostof what you think is a steel
manufacturer today is really abroker.
There's so many brokers in thespace it's unbelievable.
So brokers go to brokers go tobrokers.
I can see off on that.
I keep going yeah.
We see a lot of that, you know.
But you know it's somethingthat we have a passion for and
(05:53):
we love to build product andbring product to the to the end
user, to the consumer, and welike like to do it fast.
So you know we made aincredible investment here in
Lake Havasu to be able to dothat on a rapid level.
And you know some of the brands.
You know one of the majorbrands that is sponsoring your
podcast today is our 10-day doorbrand.
So we looked at steel doors andyou know steel doors used to be
(06:17):
all built, was made anddesigned in America.
You know used to be all bebuilt here out of tube steel and
you know in the last 15 yearsthat's changed a lot of the
almost 99% of those thatproducts imported you know.
So we, we kind of brought back acomplete new design to the
steel door and made it betterthan ever before.
I think I have a steel door inmy building and I think my
(06:39):
builder was using you for allhis doors, so I was already
opening your doors before I metyou man, that's great.
I appreciate that Hope you'reenjoying it.
I'm like the guy who built thedoor.
I'm so excited, right.
Doors Sounds silly, buteverybody needs a door.
Let's be honest, man, when Igrabbed that door, even my wife
did.
She's like this is a cool door.
I'm like right, this thing.
It took my whole body weight toopen but man, it felt masculine
(07:01):
, masculine, right, it was great.
So there's really true to it.
Like the door is cool doors,man.
Thank you, I appreciate it.
But anyhow, you know, I reallylike and our team.
You know when I say I, it's we.
We have a great team.
You know, yeah, I have a mastermachinist that runs our
machining crew and our machineshop and really does overlooks
all of our machinery in the shop, eddie Farrington, which is
(07:22):
just an absolute asset to ourteam.
You know somebody that Iactually found here in Lake
Havasu, so or he found me, oneor the other, I think it was he
found me but absolute asset toour team and really our biggest
asset is our people.
You know the people that wehave and the team that we have.
It's by far, and I've heard yousay the same thing about your
team.
So you know, I enjoy workingwith you.
(07:43):
That's where I think thealignment is, Even when you and
I were talking about ourcontrollers you know the people
who do all our management, allour bank accounts and so forth.
you know, that kind of leadsinto another question that I
think a lot of people are justbypassing on other podcasts,
which is labor.
You know that is a problem.
People have concerns that herein Lake Havasu that's a big
concern with certainconstruction trades and I, you
(08:04):
and I discussed this.
As soon as you expressed whatyour practices are, I
automatically knew you got ithandled.
So if you don't mind, let'stalk about that, because I want
people to know the differencebetween you and what a lot of
these other manufacturers aredoing, and by just kind of your
practice I think people will seeit.
Well, my response in labor is wehave to pay at the top of the
labor scale.
If you want the best, you haveto pay for the best.
(08:26):
If you expect the best, youhave to pay for it.
And you know you have to havethe proper benefits and the
facility for individuals to growand flourish in.
And you know I'm not afraid ofhiring somebody without any
skills and to give them thoseskills you know.
But you know the benefits arekey for labor.
A future is key.
Full-time work is key, you knowcaring about, you know your
(08:51):
team and their family and evenif you don't take a personal
interest in it, having you knowthe systems and you know the
policies and the procedures setup for them, I think is absolute
key.
I mean, people are.
You know, without peoplenothing works.
You know.
I, you know, I've learned justeverybody has hardships in life.
(09:12):
You know, when you, you knowyou're really trying to work to
make enough money to go home andhave some sort of a decent life
.
You know and give to the onesthat you love.
Yeah, I really appreciate thatpart of the conversation because
when we first talked, there'syour culture inside your company
.
When I walk into any company,any office, what have you?
I could feel the energy.
(09:33):
Sure.
And that's just kind of overtime, me being in so many
different rooms around the worldand because I naturally talk to
people about money, that'susually the most sensitive
subject, sure.
So I feel like I have anability to read people and their
energy and body language, andthat's one of the great things
that I felt about yourenvironment is, obviously you're
(09:55):
scaling up to have north of 300employees, but to see how they
are all operating and how theyall, how cool they are, I mean,
all the guys were there on asaturday afternoon.
The guys are coming back andlike we'll be here Sunday
morning.
Like man, they were likeexcited to come on Sunday
morning.
When do you find guys like thatanymore?
You know, like can I bring themover here here and there?
(10:16):
But it's true, to be able tohave that environment and people
want to work, I think is reallykey.
But that does tell what kind ofproduct you're going to create
and perform.
But are you going to be able tohit your timelines?
That we're all leaning into?
You know, and that's where Ithink a lot of operators like me
need to touch on more podcastsif they're even going to go down
this road, meaning you knoweverybody that you're going to
(10:38):
align with right, like when Ilooked at this, there's about
300 people that were employingin this one project.
When you look at everybodythat's involved at some level
from our subs to architects,engineers, everybody then you
try to understand every companyunderneath that.
And right now I think intoday's market, you need to pay
attention to that more Because,for example, my architect or my
engineer or my electrician, youknow, one of the concerns are
(11:02):
like are you grandfathered in ata supply house?
You know how, what size ofbusiness do you have?
Are you going to get certaintreatment to get certain
materials?
Like?
Those are conversations thatpeople need to have probably
more often.
I'm watching a lot of operatorsnot know how to how to really
vet that.
So you know, syncing up with agroup like yours not only your
track record 30 years right Plus, like you said, your family but
(11:26):
the way that you operate, and Iwant you to talk about the
level of cuts and calculationsand a little bit more about your
operation.
Manufacture all of ourbuildings, especially the barn
caves, when we're thinking, look, we want to do 35 locations, we
want millions of square feet.
(11:46):
You know that is a.
You need to look all the waydown to that level.
That's the detail that needs tobe implemented right Is down to
even the manufacturing side,and that alone is a problem, you
know.
So let's go into.
You know the level of cuts andyou have aerospace contracts and
then let's talk about justoverall, the industry itself and
(12:10):
the problems that are being had.
Sure Well, timeline-wise.
The way I look at timelines,ryan, is they're objections that
just need to be overcome.
So if we care and we put ourthought process into it, we can
always overcome them, as long aswe have the proper facility and
the assets to do so.
Now, one of the things about meis I do everything in-house,
(12:37):
and I mean everything 3DCAD, youknow I have a whole team that
does that.
We operate an up-to-date solidwith 12 seats of solid works
that we operate to exporting thenumerous of those designs to
the numerous different programsthat run different machines,
whether it be in the G code inthe machine shop, you know, at
the cutting levels, to themachinist that Eddie runs and
(12:59):
whatnot that we spoke of earlier, whether it be to the advanced
manufacturing steel equipment orto the coating, you know we
have the ability to scale up ordown at any, you know, at any
level.
So if I have a project thatneeds a coating and I'm going to
wait on a coater or a thirdlevel, you know, vendor on
something, I typically willbuild an oven in a spray booth
(13:19):
to get it done.
Right.
So you know they're justobjections to.
You know that need to beovercome.
That's why I've made such anincredible investment in our
team and our facility here thatI'm not at capacity at, because
I've made such an investment inthis.
So that's where I really enjoyour conversation and watching
you with your projects and, youknow, because I think that if I
(13:40):
can align myself with somebodylike you and bring those
projects to fruition much faster, I think the whole world wins.
We're having problems.
For example, let's talk aboutthe equipment we're talking
about.
Think about buying.
You said on average and I agreewith you that we have roughly,
let's say, 54,000 pieces here atParadigm Storage, 225,000
(14:02):
square feet.
The equipment that we'reworking on getting is going to
produce 68,000 cuts a month.
Well, that's one piece of thefive equipment.
So, in essence, really whatwe'd be able to do you have
about 26,000 pieces in thiswhole facility of one of the
machines that could produce64,000 pieces?
(14:24):
Got it, got it.
So in essence, with themachinery, we'd be able to build
two of these facilities a monthin a in a month is a 22 day
500,000 square feet of yeah In amonth, and it's just with these
beginning machine, you knowmachines that we're talking,
that we have conversation about.
There's more out there but this,there's so much more to our
(14:45):
product because, you know, Imean, look at all of our, all of
our walls.
I mean we're, you know, fullyinsulated.
You have panels on both sidesof the studs.
I mean there is a lot more herethan most storage there really
is.
So that'll give you an idea.
One of the things that I build,I mean it's really.
I mean, if you look around andthis facility in particular, the
(15:06):
spacing, you know really theease of use of everything and
the quality.
Like you said, everything'sdouble insulated and this is a
harsh environment where we arehere.
Well, right now it's 108 outside.
Right.
It's 74 degrees and we're doingpretty good.
Yeah, we're doing pretty goodinside here in one of these
facilities.
So you know when, when somebodyhas a two and a half million
dollar boat or you know theyhave these big, they like to
(15:28):
have it in this type of facility.
So and they need to.
They have to, yeah, or it'sruined.
They're ruining your stuff.
Yeah, it's literally a trueinvestment to keep your toys, or
even your toys, are investmentsyou know, indeed, so you gotta
you know, indeed, indeed, so yougot to take care of it.
But anyways, keep going.
Sorry, no-transcript that, butyou know, I think really what
(16:12):
for us, we see a lot ofbottlenecks and and the
materials and so forth with, uh,with all these buildings, and
the delays we've had have been,I mean, you know, if we want to
do millions and millions ofsquare feet, that we can't have
those issues, yeah, and and youknow, at the same time, we want
to be able to deliver resultswhen we say we're going to
(16:33):
deliver something.
I don't?
I hate feeling like I got torely on somebody else and then
that person's not being honestor truthful, because us, as an
operator, it's hard to really behonest with everybody else when
we're just relaying the message.
So I'm kind of getting to thepoint where I'm like, okay,
we're already seeing bottlenecksand this is kind of becoming
more problematic for everydeveloper and operator that I'm
talking to, that is, inself-storage metal buildings in
(16:56):
any shape or form.
So I'm looking at it going well.
Not only can we stop thebleeding and us not have so many
issues and bottlenecks onmaterials if we are
manufacturing our own buildingsand obviously saving money and
making better investments and soforth, bringing down risk.
Meeting timelines.
Timelines and everything else.
And in fact I mean we can get toa point where we are taking our
(17:18):
pro forma and cutting it inhalf because I'm designing
everything around the issuesthat we're already seeing in the
industry.
Sure, in half because I'mdesigning everything around the
issues that we're already seeingin the industry, If I can say
okay, well, those issues don'texist because we're
manufacturing our own buildings.
Now our profit goes through theroof because I'm cutting my
timeline a lot.
That's a different level.
And getting the product that youinitially intended to get.
Yeah, this is more institutionalgrade.
Go get $100 million line ofcredit, $200 million line of
(17:40):
credits.
These are the practices andstrategies that you have to
implement when you're looking atgoing big.
So, on top of revenue,additional revenue stream.
So now I can go to all theseother operators and builders and
developers that I have greatrelationships with and go hey, I
know you're having issues, butwe're manufacturing buildings.
I don't have enough.
You and I have equipment thatcan handle way more than what
(18:04):
I'm needing, so let's producethat on top of you know, now
they can go back to having astandard, regular business model
too.
Because, again, the biggestproblem right now in this
industry as an operator, from mystandpoint, is getting this
material on time at a good, at agood price.
A lot of prices continue toadjust and that's okay and we
get all those.
(18:24):
But if we'd like to know kindof what you're getting yourself
into early on, so here's yourdeposit, here's what it's going
to be, guys like us, go buy allthe material.
That price is fixed until wedeliver, you know.
But that's a, that's a.
That's a big help, you know forguys like me.
It's funny to hear you say thattoo, because really what lies in
the middle of that is multiplebrokers.
So that cuts into yourprofitability, that cuts into
(18:46):
your timeline.
I mean both.
It's wild how much these brokersare making.
Like.
I'm not trying to do.
Yeah, everybody's got to make abuck.
This is business.
But these brokers, I mean, I'mthinking we're probably paying
35%, 40% more than what thatbuilding could cost us.
Yeah.
Just with broker fees than whatthat building could cost us?
Yeah, just with broker fees.
Yeah, if we continue down theroad that we're going down,
(19:09):
you'll really have a 122,000square foot manufacturing
facility.
That will be able to cut a lotof the brokers out of all the
product.
Because, like I said, we don'tjust build steel buildings like
most steel buildingmanufacturers build, we build
everything.
Yeah, so we have you alluded toit.
We have a full 9001 ISO machineshop, you know with.
(19:31):
We have six vertical mills, wehave two, eight access lays.
We have, you know, a multiplemultitude of machines that can
build any and every product.
So, and then you know, all ofthe measuring machinery to make
sure that that product's beingduplicated.
Then we have an enormousadvanced manufacturing facility
in that we have a big fiberlaser tower, robotic machines
that can run day and night toprovide, you know, let's say,
we're doing roll-ups we weretalking about earlier A lot of
(19:54):
what hold that up isn't thepaneling, it's the hardware.
Yeah, so the garage doors yeswe're able to create that
hardware right in-house ourself,and you know our machines can
run overnight, yeah, you know.
So we can literally makehundreds of thousands of parts
monthly in the facility.
But I think what the biggestpart is is what's lost in
translation between themiddlemen, you know, and that's,
(20:22):
I think, talking to so manyinvestors, and especially you,
and really getting in tune toyour operation.
That's really, I think, where Ican really shine when we're
working together, and I thinkhow you can really shine for
other investors is there is nomiddleman.
They're dealing with one personyou, me and you.
Yeah, well, you're dealing withme and we're us, you know.
So it's real Order some morespools.
dude, we got another order.
Let's go.
(20:49):
I mean, it's not that difficult.
No, it really isn't, but thatyou know all the way down to
just to be a little more, justfull disclosure here.
You know, we just had someissues with one of our buildings
and the load calcs weren'tright.
Yeah, and you know, we'readding some more material and
come to find out, the brokerthat we're working with was even
outsourcing the engineeringyeah so the original engineer
that stamped and stamped thebuilding originally for the
approvals.
they didn't go back to that sameengineer to do the additional
load that we were putting up onthe work route and it's like and
(21:10):
now so, of course, that newengineer creates a lot of
liability for them.
So of course they're not goingto put their name on that and it
just became more and moreproblematic.
So, even from an engineeringside, which is also a dying
breed, bad fast, big time.
I think the idea is for us togo in and acquire that, which
also helps.
Again, you know other operatorsand developers saying, listen,
(21:30):
not only we manufacture, we gotengineering for you here
in-house and they work for usexclusively so you can have open
dialogue with them.
You know that type of stuff tokind of help these guys get
through it.
You know, and obviously havingrob on the architectural side, a
lot of these things, we I thinkultimately we can start helping
other developers and buildersbuild their dreams and actually
get the buildings and then againthe store or the garage doors.
(21:52):
That's another huge piece ofyou and I were just talking
before the podcast.
I know builders right now thatare building single family homes
but can't get their garagedoors and can't get their COO
and sign off on the house to beable to sell it because they
can't get a garage door.
I mean that's a simple piece,but you know again you and I
talk about it offline the amountof problems that we're seeing
(22:13):
on the manufacturing side andthey're relying on so much
material coming overseas.
That is a problem.
So we can fill a niche andcreate additional revenue
streams which protects thecorporation and the brand, and
then bring in all kinds ofwonderful things here.
You're one of the top 10employers here now.
Indeed yeah.
So just the support and thecommunity support and help.
(22:34):
It's just like I say all thetime, if it's a win-win, I think
that's the way that makes anyinvestment in any relationship
flourish.
Yeah, I couldn't agree more.
I think that was really kind ofit that I wanted to touch on.
I think there was, and I don'twant to.
We don't want to spill thebeans too soon.
We'll do a second podcast forsure, but other than that man,
is there anything else you wantto add?
not unless you can think ofsomething.
(22:55):
I think I'm good man, soperfect, right on well, thank
you, guys, all very much.
We'll do a second one and athird one, I'm sure, especially
when he brings the new podcasttable over, as they are our
sponsors.
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