Swarfcast

Swarfcast


Starting a Machining Company is Hard, with Jon Perin

October 15, 2021

Today’s guest on the podcast is Jon Perin, owner and President of Perin Industries, a young CNC machining company in Webster City, Iowa. Jon, started Perin Industries in 2018, after a 12-year career as a hospital administrator. Like many entrepreneurs, Jon has had to face some daunting challenges. Starting out, he aggressively bought new state of the art CNC equipment to make parts for the medical sector. When he had trouble penetrating that market he successfully pivoted to fire arms work.
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Main Points
When Jon Perin started Perin Industries in 2018, he planned on making parts for the medical industry. Early on, Perin Industries devoted a lot of resources to obtaining ISO 9001 and AS9100D certifications. Achieving those certifications was costly, so before the company could start the process of obtaining medical work certifications it had to start producing revenue. Also, Jon realized that medical customers prefer to work with companies who have established track records and experience, so he steered the company to work in more general industry. 
Jon grew up around his father’s screw machine shop and learned to run ACME multi-spindles in high school. His shop is right across the street from his father’s shop, which is now primarily managed by Jon’s sister. Jon attended college in Florida and after graduating went to work as a hospital administrator for 12 years. Working in the hospital environment played a part in Jon’s interest in making medical parts. Jon says he appreciates the manufacturing business’s simplicity compared to that of the health care field. He says it is easier to quantify success working in manufacturing because success can be measured by the quality of parts produced.
Perin Industries has eight full-time employees. In addition to managing the company, Jon does CNC programming and setups. He jokes that he is also the janitor. He says his employees are becoming more capable to perform setups, which will free him up to focus on more administrative tasks in the future. 
When Jon started his company, intending to do medical work, he purchased state of the art complex CNC equipment, including an INDEX C200 twin spindle/3-turret lathe he bought new for around a million dollars, and a Traub TNX65/42 twin spindle/4-turret lathe that he bought used for around $500,000. He says that after attending Design-2-Part trade shows around the US he concluded that the opportunities for Swiss work and traditional screw machine work were extremely competitive and dominated by established companies. This influenced him to invest in sophisticated turning centers.
After being unsuccessful in penetrating the medical sector,