How Craft Still Plays a Vital Role in Peridots Operations

A Peridot Publication

A Peridot Publication

In todays high volume, big box, got-to-have-it right now world, the word craft feels like its quickly fading from our vernacular. Gone are the days of passing on your international harvester refrigerator from one generation to the next. However, when it comes to the development and fabrication of precision components, the art of craft and the labor of love are still as important as they have ever been. The crafted projects and components of today are the basis of the mass produced components of tomorrow. Although the odds are against most new and innovative products, what begins as a hypothesis in the R&D lab or a side-project in someones basement, has the potential to become a multi-million dollar industry in a few short years. This begs the question: how can todays innovator increase his/her likelihood of success?

INDUSTRY Biotechnology Business Products and Services Computers and Peripherals Consumer Products and Services Electronics/Instrumentation Financial Services Healthcare Services Industrial/Energy IT Services Media and Entertainment Medical Devices and Equipment Networking and Equipment Other Retailing/Distribution Semiconductors Software Telecommunications Grand Total

2011 TOTAL $4,821,172,400 $204,689,300 $404,921,100 $1,314,819,800 $679,322,800 $389,546,700 $367,614,900 $3,895,984,400 $2,452,213,800 $2,258,403,200 $2,819,023,500 $328,078,400 $38,708,100 $433,108,400 $1,367,739,800 $7,037,738,900 $717,323,200 $29,530,408,700

Historically, 40 percent of venture-backed companies fail; 40 percent return moderate amounts of capital; and only 20 percent or less produce high returns.
The word craft conjures images of the early industrial age when skilled metal and woodworkers fabricated products with their bare hands. Extensive hours were spent sweating the details to ensure that the finished product grabbed the attention of the potential buyer or generated additional commissions based on quality and aesthetics. Even though digital technologies have been injected into our innovation process, it still follows a timeless workflow: concepts move into the developmental phase, which will in turn seek to produce confirmation before prototyping and testing can be undertaken. Todays inventor still exercises the same brainstorming approach to produce visual concept models, albeit by utilizing a suite of software in place of slide rules and napkins. Its during the initial fabrication stage, when the visual model comes to life, that the concept of crafting becomes most applicable.

While the mainstream press would have us believe that the lions share of venture capital investments in North America are currently being made in the software industry, that is a vast exaggeration. Although its true that the software industry does lead the pack, significant attention is also being paid to other sectors that are saving lives and

1072 Serpentine Lane

Pleasanton, CA 94566-4731

phone: 925.461.8830

fax:925.461.8833

peridotcorp.com

A Peridot Publication

producing goods that revolutionize how we interact with our world, including biotechnology, industrial/energy, and medical devices & equipment.

process at (generally) a fraction of the cost and time of larger organizations. Further, the small contract manufacturer is not entangled in a management hierarchy (sometimes referred to as constipation) that many large organizations The likelihood of early stage products succeeding is have. Alteration to prototypes can be made quickly and dependent on a multitude of variables including the efficiently by simple e-mails or single sheet change orders, market sector, economic conditions, business model, and versus weeks of design and process review approvals. proprietary nature of the idea. But none are more important than the team behind the product and the selection of Peridot works with some of the most reputable OEMs and early-stage partners chosen to help bring ideas to life. As manufacturers in the world, but it is often the basement the old adage states, most investors will take an A team inventors, startup companies and small-scale customers with the right production partners and a B idea, over the that can most appreciate Peridots hand-crafted approach. inverse scenario. Innovators can increase their likelihood Extensive capabilities, flexibility, turn-around time and costs of success by turning to the contract manufacturers who are hallmarks of Peridot valued by long-standing and new have lived and succeeded in this space for a long time, as customers alike. opposed to deep-pocketed corporations or manufacturers. Its little surprise that large corporations generally do not have the time or tolerance to take risks on the long-shot ideas of our basement inventors. They are better able to manage their risk exposure through acquisitions of small companies that have already established the technology and market arenas. It is these early-stage entrepreneurs and smaller companies that most energetically seek out the craft and prototyping skills of a highly-skilled and experienced contract manufacturer such as Peridot to assist them in moving through the process from visual/functional model to prototype and testing phase.

ABOUT PERIDOT CORP.

Peridot Corp. is your next-generation production partner, offering complete component fabrication and assembly services to a diverse range of industries including the medical device industry, automotive, electronics, alternative energy, oilfield instrumentation, the semiconductor industry and many others. With a diverse array of capabilities including laser processing, CNC machining, wire EDM, tube fabrication, stamping, sheet metal and wireforming, Peridot simplifies your supply chain. Thats why its fitting that Peridot has always adopted the mantra, Go ahead. Challenge us!
Source: National Venture Capital Association

Venture backed companies today serve as the R&D pipeline for larger life sciences companies looking for innovation. In the last 5 years, close to 200 venture-backed life sciences companies have been acquired for their innovations.
The right partner will be able to execute the small fabrication steps of development with precision and attention, while also working in parallel to other phases of the project(s). The resulting workflow expedites the development and testing

1072 Serpentine Lane

Pleasanton, CA 94566-4731

phone: 925.461.8830

fax:925.461.8833

peridotcorp.com