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David Jordan, president and
founder of Pleasanton, CA’s Inverse Solutions, Inc., has
already achieved what most entrepreneurs only dream about. “I
built my first job shop into a very successful business with 130
employees in a 35,000 square-foot building,” he says. “We had been
making parts for the semi-conductor industry for years. Then a
partner and I came up with a shield technology to prevent the metal
they sputter (deposit) on silicon wafers from flaking. The result
was that from just making parts for the industry, we developed a
whole technology around particle reduction. Using that technology,
we built a company we called SET (for Semiconductor Equipment
Technology), and SET succeeded incredibly.”
In 2000 Jordan and his partner sold that business to Tosoh
Corporation, a Japanese company. He was about 40 at the time, and
had more than 20 years of business experience under his belt.
“I learned a lot during that time,” he says, “but when SET was
gone, I had money, but no real direction.”
First Business
Jordan started his first company right out of high school, a
machine shop, in his father’s basement.
“My father was a master machinist working in the lab at Stanford
University making prototypes,” Jordan says. “I had learned to arc
weld in high school and started welding components free for the
school bus maintenance people, who were next door to the school.
When they found out I could weld, they started bringing parts over.
But then I thought, ‘I can make money doing this.’ That’s what got
me going in my own business.”
After high school, Jordan asked his father to help him buy a small
arc welder, but, instead, his father came home with a TIG welder.
“That was totally different,” Jordan says, “I didn’t know
anything about TIG welding, but dad took me to Stanford to watch one
of their top welders. I learned TIG
welding by looking over his shoulder.”
Jordan’s little business did pretty well, he recalls.
“I ran the company for the first two years,” he said, “and we
continued to collect manual mills, lathes, that kind of stuff. We
did pretty well for a garage shop. We were machining and welding and
doing some assembly for a number of companies in the area and for a
guy who lived nearby and worked in the semiconductor industry. When
he learned we had a shop near his home, he started dropping off work
on the way home and picking it on his way back to work. He remained
a customer for years.”
After two years, Jordan asked his father, who was his partner, to
join him full time in the business.
“That changed everything,” he says. “My father was a master
machinist and was really the base of the business. His presence gave
us a huge new capability, so I just went out and told customers, ‘We
can do anything.’ From there the business grew and led eventually to
the creation of SET.”
Drifting Awhile
After selling his first successful business, which had consumed
most of his energies, Jordan says he drifted for a while, not quiet
knowing what to do with himself.
“I was still young, I had money, but no real direction,” he says.
“On the other hand, I’m not someone who can just do nothing, so I
did a lot of things to stay busy. All my life I had been very
focused. When I was very young, I told myself, ‘Someday I'm going to
build my own house. I'm going to start a company, and I'm going to
be a millionaire by the time I'm 35 years old. My grandfather had
laughed at that. But now, having achieved all my own goals, I wasn’t
sure what I wanted to do. It was a strange feeling.”
Jordan tried construction for a while.
“I bought a couple of houses and remodeled them,” he says. “Tried
that for a while. After that my ex-partner from SET set up a large
manufacturing plant down in Mexico asked me to join him as
consultant, and I did that for a year. Finally, I went out and sold
machine tools for about a year, and that’s what really got my juices
going again. It was very interesting. Being out there in the
industry, seeing which machine shops were successful and which ones
weren't and what the hot industries were, got me interested again. I
suddenly knew what I wanted to do. I loved the machine shop
business, so why not do it again? It would be a good challenge, and
it would be fun.”
The Second Time Around
Jordan was a much more experienced businessman when 2-1/2 years
ago he started up the second time.
“I had a business shell named Inverse Solutions, Inc. sitting on
the shelf,” he says. “At one time I had considered starting a
reverse engineering company under that name, but had changed my
mind. Since the company was already in existence, I used the name
for my new business, and it’s working out just fine.”
Startup this time was much easier, Jordan reports.
“This time around I knew a lot of people, potential customers,
and they knew me,” he says. “I knew equipment sales from my previous
experience, and I had a pool of good ex-employees to reach out to.”
Since kicking off again, Jordan has aimed his efforts primarily
at the medical, semiconductor and electrical connector industries.
“We’ve been pretty successful,” he says. “We have fourteen
employees, we’re in a 5,000 square-foot facility, and we’re
operating two multi-axis Star Swiss machines with subspindles and
live tools. We also have a Starrett CMM and four YCM, 3-axis
vertical machining centers, two 20 x 40s, one 16 x 20, and the
newest one has a 23 x 40 work space. This time around we bought all
our equiment from Joe Clancy, mainly because of the great support he
gives us.”
Programming Headache
Not long ago Jordan got a shot at a large order for some very
complex parts.
“The customer was an aerospace company that found us through our
website,” he says. “They came in for an interview and seemed
satisfied enough to give us a part to see whether or not we could do
it. It was a deceptively simple looking part made out of 6061 T6
aluminum. The problem was, it wasn’t simple at all. It turned out to
have multiple layers, it had .001 tolerances and it had to stay very
flat, which 6061 doesn’t like to do. To give you an idea of just how
complex it is, it runs 8 hours cycle time just on one side.”
But the biggest problem wasn’t the machining, Jordan reports.
“It was the programming,” he says. “It took us approximately a
week to program it using another CAD/CAM system, but we did it and
made the first part.The customer loved it. It went through their
tests great, and they came back and said there were 60 more parts,
each different, each requiring different programs. They wanted the
parts delivered over the next six months, which I knew we couldn’t
do the way we were set up.”
Jordan went to the customer, though, and said, “Look, if you give
me an opportunity to do all these parts, I'll add the capability.
I'll be your shop, and I'll run all these for you. They agreed, and
I added the the third YCM. But I also needed new CAD/CAM software
that could significantly speed up programming and be quick and easy
to learn.”
GibbsCAM Got the Nod
Jordan went looking for software that could read a solid, and
program directly from the solid.
“The software had to be intuitive,” he says. “We really didn’t
have very long to get up to speed. It had to be quick and easy to
learn, plus I wanted software that would allow my guys to machine
the way they wanted to, not the way it wanted. Another big thing for
me at the time was what kind of support we could get. With our time
frame, I knew we would need help. I wanted a company that would dig
in and teach us what we needed when we needed it.”
In the end, after a visit to the Santa Clara trade show, and
seeing demonstrations of several software packages, Jordan decided
on GibbsCAM.
“I bought one seat,” he says, “and John Shern, who works for the
Gibbs distributor, really pitched in and helped get us up and
running. He came over and trained Tien Kiet, a great programmer who
had worked for me at my previous company. Shern came in and said,
‘Look, I'll stand by and make sure that you succeed with this
software.’ The bottom line is that I ended up buying a 2D solid
program from Gibbs, and it’s handling the job fine. I think we
definitely made the right decision.”
And Next?
Where does Jordan plan to go next with his shop?
“What excites me is that you can can build anything in a machine
shop,” he says. “If you can dream it up, you can build it. Right
now, we’re still getting our feet on the ground and consolidating
our customer base.
We want to go after more medical work for our Stars, but like
most startup shops, we’ll do any work that’s profitable.”
What about his entrepreneurial spirit?
“Well, that’s still alive and well,” he says. “I have a few ideas
rumbling around in my head, and I have a new partner who’s an expert
in the semiconductor industry, and he has some ideas, so you just
can’t tell what will happen. The main thing is I’m back in the
machining business and I’m happy. That’s what matters to me.”
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