Occasionally, software and tech companies will enter the arena, making bold claims that they’ll upend their respective industries.
And the contract manufacturing sector is no stranger to “disruptors.” One company currently making headlines and sparking debate, Hadrian, offers a distinct perspective. Whether you’re in opposition to what this company is doing or ready to join their fan club, it’s worth diving into what their model means for manufacturers, OEMs, and the future of our industry.
To contextualize the matter further, we spoke with Jason Ray, co-founder and CEO of Paperless Parts, whose quoting software has advanced what we’re capable of here at RPI. Jason offered some valuable insights on Hadrian’s approach, and we had a fascinating discussion about its implications on the future of contract manufacturing. Here are some of the highlights:
Hadrian’s “Winner-Takes-All” Vision
Countless articles have positioned Hadrian as a game-changer that will revolutionize aerospace and defense manufacturing by prioritizing the following:
- Automation
- Economies of scale
- Cost reduction
- Robust workforce development
As Jason puts it, “Hadrian is taking a winner-takes-all model” reminiscent of companies like Uber and Amazon, undercutting competitors with the ultimate goal of market dominance. By subsidizing production costs upfront and tailoring designs to their processes, Hadrian believes they can drive conformity among OEMs and lock in market share.
Remember when Uber entered the space? The company won us over with their shockingly low prices and ease of use. Then, once we were hooked, prices started creeping up. Even though ridesharing apps are hardly cheaper than taxi companies today, many consumers have become so accustomed to summoning a car with a few taps that they won’t go back to hailing a cab the traditional way. The same approach worked for Amazon, which operated under a similar model: offer cheap prices, get consumers hooked, and drive up prices over time.
But here’s the catch: manufacturing is not as forgiving as ridesharing or retail. A software glitch might delay an Uber pick-up, or a processing error might result in behind-schedule delivery from Amazon. But in aerospace and defense, a single error could cost millions of dollars—or worse, human lives. The complexities of aerospace and defense manufacturing extend far beyond rapid speed and low price points.
The Limits of Oversimplifying Manufacturing
Hadrian’s model assumes that OEMs will either willingly adapt their designs to fit Hadrian’s processes or that their process is flexible enough to handle a broad enough swath of the market in an efficient manner. While their promises of streamlined production and cost reduction sound appealing, this methodology oversimplifies a deeply intricate industry.
In reality, contract manufacturers don’t own the intellectual property or design specifications; we respond to our OEM customers’ needs, not the other way around. Oftentimes, our team must navigate outdated drawings, incomplete specifications, and stringent compliance requirements—challenges that are even more pronounced in aerospace and defense manufacturing. More often than not, these components require extensive collaboration to ensure optimal manufacturability, rigorous finishing processes, and precise treatments that can’t simply be automatically programmed.
As Jason points out, “I was just talking to a shop that after scrapping several parts realized they had to heat treat something eight times to hold a series of true positions. There’s no automated system for that.”
Why Supply Chain Simplification Isn’t Always the Answer
Hadrian’s mission highlights a trend in supply chain consolidation: reducing the number of suppliers to simplify procurement and drive cost efficiencies. But we’ve seen this approach backfire. Over time, many OEMs realize they’ve put too many eggs in one basket, leaving themselves vulnerable to supply chain disruptions or price hikes.
At RPI, we’ve experienced firsthand the value of maintaining strong relationships with multiple suppliers. Our diverse network of suppliers offers us a level of protection, helping us navigate disruptions and deliver consistent results for our customers.
How RPI Stands Out Among the Hadrians of the World
At RPI, we know our place in the supply chain. As a contract manufacturer, our success isn’t about forcing conformity or simplifying processes for our own convenience—it’s about adapting to our customers’ unique needs.
Here’s where we shine:
Expertise in Collaboration and Customization
With 38 years of experience, RPI offers expertise in understanding and responding to our customers’ challenges. We collaborate closely with customers to offer guidance on DFM, finishing treatments, and more. Our digital ERP system ensures we document and address each customer’s unique requirements, from outdated drawings to last-minute design changes.
Commitment to Continuous Improvement
Complacency has no place at RPI. You won’t hear anyone on our team say, “This is how we’ve always done it.” Instead, we invest in thoughtful, sustainable growth, focusing on innovations that directly benefit our customers. Many of the practices that Hadrian is adopting as their “proprietary” process—automation, process optimization, workforce development, and so on—are strategies we’ve been implementing for years. These are proven approaches, rooted in decades of experience, that we will continue to tailor and adapt to meet each customer’s unique needs.
Driving Innovation Through Partnerships, Not Oversimplification
While innovation is always welcome in our space, it’s important to distinguish between bold ideas and oversimplifications. While Hadrian’s fast growth strategy and deep pockets make headlines and capture attention, the complexities of aerospace and defense manufacturing require more than venture capital and bold claims. Trust, adaptability, and collaboration are critical to building long-term, successful partnerships.
Ricaurte Precision continues to prioritize methodical and sustainable progress over short-term results. With 25% year-over-year growth, we’re focused on strengthening relationships, upholding rigorous quality standards, and remaining adaptable and reliable to our customers’ unique requirements.
With a proven track record, deep industry knowledge, and an unwavering focus on our customers, the RPI team is confident that our approach will stand the test of time.
Request a quote from RPI, and let’s get to work.
