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Ask HN: Hardware startups – how did you choose your location?
4 points by officialchicken on April 16, 2021 | hide | past | favorite | 2 comments
I am trying to determine the best location for my hardware startup. Looking around the US, there doesn't seem to be much around NYC or SF areas for startups who need to prototype, build, and manufacture products more complicated than RGB sunglasses and IoT watering systems for pets. Austin seems like a possibility with access to all the necessary skills and tools but I'm unfamiliar with the area. I also know of companies with tangentially similar manufacturing requirements (e.g. System76) are located in Denver.

Our product is niche for industrial customers, not intended for the general public. Usage of plastic is essentially a non-requirement beyond early prototypes, where the final needs stainless steel and some soft metals to attain product ratings/certifications. In our case the final assembly for the product must be done by one or more specialized (certified well beyond ISO 9001) outsourced contract facilities - so supply-chain/logistics and shipping weight are bigger factors in the deciding location. Another major consideration is that we don't have a strong need to be in close physical proximity to our potential global customer base, only talent and tooling nearby.

I understand that prototyping and production are two very different activities with very different needs. Where are some good options for those who want to prototype devices without relocating later for manufacturing ramp-up / inventory / tax purposes? If you are a HW company - niche or otherwise (or considering building one) - why did you choose your location?




How much of your outsourced work actually requires site visits? It’s standard practice to simply ship parts and prototypes around, going on-site maybe for production line setup and kickoff. I’ve done distributed and remote team hardware development without major issues, but of course this depends on what you’re building.

I haven’t really felt constrained by location when doing HW startup work. Prepare for a decent sized shipping budget (overnight shipping adds up) but it’s a drop in the bucket relative to salaries.

> In our case the final assembly for the product must be done by one or more specialized (certified well beyond ISO 9001) outsourced contract facilities

If you have ultra specialized requirements that only a few facilities can meet, I’d start by vetting those potential partners.


We are already determining the qualifications/vetting process for those specialized assembly houses.

> How much of your outsourced work actually requires site visits?

Visits should be minimal if the correct partnerships are in place as you suggest. This device ("instrument" in industry parlance) is intended to connect to industrial machinery, it may be difficult for outsourced skills to debug/tweak remotely, meaning visits from key outsourcers to our location are more than likely. To avoid that, we will have to figure out how to do that remotely.

Thanks for the info, it's very much appreciated.




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