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Xometry going public

Radar987

Cast Iron
Joined
Dec 30, 2011
Location
TX
Xometry is an exploitative service company that doesn't take care of their suppliers, making their business growth unsustainable.

I predict their focus is going to shift entirely to Chinese manufacturing at some point, as one by one, all the American and European shops tell them fuck off.
 

john.k

Diamond
Joined
Dec 21, 2012
Location
Brisbane Qld Australia
The founders wont care about any future problems developing...because they will have their money and be off.......Very wise to sell now when the IT market is at a bubble like peak ,and showing signs of general nervousness coupled with reckless speculation.
 

CITIZEN F16

Titanium
Joined
May 2, 2021
Xometry is an exploitative service company that doesn't take care of their suppliers, making their business growth unsustainable.

I predict their focus is going to shift entirely to Chinese manufacturing at some point, as one by one, all the American and European shops tell them fuck off.

They can rely on the fact there is a fool born every minute in this line of work, thinking accepting low margin work and jobs no one else wants will get their foot in the door for the gravy jobs down the road. Xometry obviously counts on that.
 

mkd

Stainless
Joined
Jun 8, 2013
Lots of people shitting on them. Same people who failed to realize the opportunity and capitalize on it themselves.:scratchchin:

I
R
O
N
Y
 

cnctoolcat

Diamond
Joined
Sep 18, 2006
Location
Abingdon, VA
Whatever happened to MFG.com?

Isn’t Xometry just copying that business model??

Didn’t work out too well for ‘ol Mitch Free and his MFG.

And how in holy hell does Xometry do tens of millions in business every quarter?

Is that their cut, or is that the value of the work they middle-manned??

And how does a company with a few computer programmers and a server or two get “100 million in debt.”?

Sounds like the principals have borrowed to the hilt, pocketed most of the borrowings, and plan to dump the rotten egg of a company off on Wall Street.
 

mhajicek

Titanium
Joined
May 11, 2017
Location
Minneapolis, MN, USA
What I fail to understand, is why a client would use Xometry instead of just googling machine shops in their area that they can develop a relationship with. At least in the circles I run in, that relationship is critical. I'm frequently talking directly with my clients, getting stock on order ahead of their POs as they finalize their designs, making the parts over the weekend, and then running the parts over to their welding supplier or somesutch. Often making tweaks to my processes to better suit the client's needs. You don't get that kind of service through a middle-man.
 

mkd

Stainless
Joined
Jun 8, 2013
What I fail to understand, is why a client would use Xometry instead of just googling machine shops in their area that they can develop a relationship with. At least in the circles I run in, that relationship is critical. I'm frequently talking directly with my clients, getting stock on order ahead of their POs as they finalize their designs, making the parts over the weekend, and then running the parts over to their welding supplier or somesutch. Often making tweaks to my processes to better suit the client's needs. You don't get that kind of service through a middle-man.

working for other machine shop...sucks
not all clientele on the service are machine shops.
you can eventually see who the buyer is
 

drcoelho

Stainless
Joined
Feb 19, 2017
Location
Los Altos
It seems to me that Xometry is doing exactly the same thing that Amazon has done. They are matching buyers to sellers in a more efficient manner. They also, by virtue of their marketplace scheme which pits one supplier against another, will tend to drive margins down for the suppliers. This is of benefit to the buyers, but not of benefit to the suppliers. Amazon has done exactly the same thing for consumer goods. Amazon is brutal for suppliers, but of great benefit to buyers. These are disruptive companies that are leveraging the power of the Internet to change the way buying and selling is done. These types of plays are here to stay. The Internet has disrupted entire industries and I suspect will do so to manufacturing as well.

Having been in exactly the same position as the founders of Xometry with a couple of my startups, one DOES NOT go public to "dump" the stock. Quite the opposite, what the Xometry founders are highly motivated to do is to get the company profitable which will increase the value of their stock by 10X. Most startups start off with heavy losses (that is why they need a lot of venture capital) in order to build market share and feed high growth, and then once they get to critical mass they adjust the business to target profitability. Also, keep in mind that the primary goal of an IPO is to raise additional capital for the company to feed growth, not to give the founders an exit. All the founders will have lockout agreements preventing them from selling stock in the IPO or for an extended period after, and they will also be restricted by SEC Rule 144 which severely restricts founder stock sales.
 

bosmos_j

Hot Rolled
Joined
Jun 9, 2015
It seems to me that Xometry is doing exactly the same thing that Amazon has done. They are matching buyers to sellers in a more efficient manner. They also, by virtue of their marketplace scheme which pits one supplier against another, will tend to drive margins down for the suppliers. This is of benefit to the buyers, but not of benefit to the suppliers. Amazon has done exactly the same thing for consumer goods. Amazon is brutal for suppliers, but of great benefit to buyers. These are disruptive companies that are leveraging the power of the Internet to change the way buying and selling is done. These types of plays are here to stay. The Internet has disrupted entire industries and I suspect will do so to manufacturing as well.

I don't see the Amazon analogy as much as I see the Uber one. Xometry is doing for US machine shops what Uber has done for taxi companies, but worse. In some sense, they are similar to Amazon: give consumers direct access to huge piles are Chinese crap. Using the internet to connect buyers and sellers in part making has been around a long time. I don't have experience with mfg.com but I remember First Index maybe a decade ago. Not new. What is new is they are pitting US shops against Chinese more directly than ever before. What small amount of value they do add*, inspection, they want to offload. What they should be really good at, communication, they suck badly.

Other thread with plenty of background:
Xometry-Who is doing it?
Do keep in mind the main champion on Xom was outed as a totaly fraud, as9100d

*correction: inspection is not adding value. Xometry is a completely non-value adding entity. You can say they reduce the overhead required to get a part made, but overhead is not value adding either.
 

enginuity

Aluminum
Joined
Dec 23, 2009
Location
Canada
Xometrey works because many people who use this service to procure goods probably couldn't even draw a picture of a lathe.

Toyota et al know that suppliers are a key part of their business, and is very much relationship based. Business practices that put your suppliers out of business works in the short term, but long term is much more difficult to manage. Why must we all play the stupid game of I'm the richest this quarter!

As much as some people say there is commodity work in this business, that's mostly nonsense. Look at material for example. Material is "suppose" to be a commodity yet there is a wide spectrum of quality even in material.

Sourcing based on a checklist of requirements and lowest bid is a purchasing recipe for disaster. Awarding lowest bid has been standard government practice in numerous jurisdictions and has a terrible track record.

Will Xometry continue to grow? Probably. I'll let others beat each other up on price while I focus on my core competencies that cannot be communicated in price alone.
 

triumph406

Titanium
Joined
Sep 14, 2008
Location
ca
It seems to me that Xometry is doing exactly the same thing that Amazon has done. They are matching buyers to sellers in a more efficient manner. They also, by virtue of their marketplace scheme which pits one supplier against another, will tend to drive margins down for the suppliers. This is of benefit to the buyers, but not of benefit to the suppliers. Amazon has done exactly the same thing for consumer goods. Amazon is brutal for suppliers, but of great benefit to buyers. These are disruptive companies that are leveraging the power of the Internet to change the way buying and selling is done. These types of plays are here to stay. The Internet has disrupted entire industries and I suspect will do so to manufacturing as well.

You seem to be impressed by this business model, having a few startups of your own.

Get out of your shop and visit a few shops who are having to compete in this race to the bottom. Maybe you'll get a different prospective. The only people who don't seem to be benefitting are the shops making parts for Xometry.

This is only benefitting people like you as far as I can tell.

I have never used Xometry and never will, and only use Amazon when i really have too.
 

drcoelho

Stainless
Joined
Feb 19, 2017
Location
Los Altos
You seem to be impressed by this business model, having a few startups of your own.

Get out of your shop and visit a few shops who are having to compete in this race to the bottom. Maybe you'll get a different prospective. The only people who don't seem to be benefitting are the shops making parts for Xometry.

This is only benefitting people like you as far as I can tell.

I have never used Xometry and never will, and only use Amazon when i really have too.

Benefiting people like me? I have no skin in this game at all.....
 

thunderskunk

Cast Iron
Joined
Nov 13, 2018
Location
Middle-of-nowhere
Xometry is an exploitative service company that doesn't take care of their suppliers, making their business growth unsustainable.

I predict their focus is going to shift entirely to Chinese manufacturing at some point, as one by one, all the American and European shops tell them fuck off.

Who says this hasn’t already happened?

Unfortunately I think your statements are contradictory. They’re exploitative. When the “true” machine shops they advertise as doing the work don’t want to play ball, they’ll take it to wherever-the-f*** and shed no tears.

The core success of Xometry seems to have less to do with the “crowdsourcing” and more to do with tailoring to people not familiar with getting quotes from machine shops. It’s the most advertised “easy quote” engine out there, at least on my browser. I bet like McMasterCarr, it’s less about having great prices and more about the one-stop shop for students. Student graduates, gets a job, where does he get his nuts and bolts? McMaster because he’s too stubborn to realize you can get 1/4-20 bolts at any hardware store.

I’m not saying I like it. Really, I think being a crook and being profitable often go hand in hand.
 








 
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