Most of us don’t have a knack for pivoting. 

We follow the standard curriculum, and we keep going forward when we get in a lane, whether we believe it’s the right direction or not.

But for Michael Gimbel, my guest on today’s show, seeing setbacks as serendipity and then pivoting is a natural gift.

Michael built a CNC router in his garage by age 12. He dropped out of an elite university after one year to start a company selling 3D printing technology that he invented.

When the company failed, he picked up the pieces, shifting to contract manufacturing and engineering consulting.

But that business didn’t excite him, so Michael pivoted again to manufacture a spindle gripper he developed for automating his own vertical CNC mills. Today his company, Gimbel Automation, is thriving and his spindle grippers are saving machining companies hundreds of thousands of dollars on automation. And he’s only 26!

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Interview Highlights

The Startup

Noah: Tell me about your interesting career journey.

Michael: I got to college and was totally miserable. I was doing things I’d already studied and aced because they wanted me to. It was such a downgrade from the equipment. The only thing I could fit in my dorm was a little 3D printer. I went from having a full shop to just a couple of crappy pieces of equipment, taking courses I’d already taken. I got burnt out and chose to drop out after a year.

To be honest, I felt like I wanted to do my own thing. Hopkins is good for the right person, but it wasn’t me. You have to want to follow everything from A to B to C by the book, believing in the process. I’m the kind of person who wants to try everything, see what I can do, and see where I fail. It’s not a place that curates failure on your own, and that’s what I really needed.

Noah: Interesting. So you decided to leave after freshman year?

Michael: I completed freshman year, dropped out, and convinced six or seven professors to give me about $70 grand as startup seed money. Then I moved to Los Angeles and raised venture capital. I raised about 1.25 million dollars as a 19-year-old with just a dream, a plan, and a couple of experimental 3D printers. I had invented a new 3D printing process. From there, it was its own wild ride.

Noah: Then what happened?

Michael: What happened was exactly what you’d expect when you hand a million dollars to a 19-year-old. I tried to run the company, but I didn’t know what I was doing. We made cool tech developments, but I didn’t understand how to manage people or how to get things to the next level. Ultimately, that first company failed.

Contract Manufacturing and Engineering Consulting

Noah: What came next?

Michael: There’s a long, convoluted path to my next stage. The company’s assets traded hands a couple of times. The original investors didn’t want anything to do with it because it was a money pit.

Eventually, it came into my hands and I ended up paying off all the debts. I had the idea to run a job shop or contract manufacturer again, to have all these machines in this space for my next chapter. I’d looked for jobs but couldn’t get behind anything, thinking I’d fall into building someone else’s dream.

I wanted to build my own thing, even if it was difficult. And it was definitely difficult.

I started doing job shop work for startups. I learned quickly that startups are awful customers because most don’t exist in a year or two. We slowly moved into engineering consulting. The startup company was 3D printing, but to do our own R&D, we had machines – a water jet, a Haas CNC machine. I thought, we need to make money now, so we’ll do job shop work. That’s how we started and how I paid off the debts at first.

We then moved into engineering consulting and production work, like specialty stuff and art. We were doing all the stuff other shops didn’t want to do because it wasn’t full production quantities and was complicated. We took on customers who didn’t have drawings but needed certain requirements. We grew rapidly, doubling in size every year.

We quickly built up to four people. Everything was great. We were mostly in engineering consulting, not only making parts but designing components, putting assemblies together, and testing them. Then COVID hit, turning our whole business upside down. 90% of the revenue disappeared. I had to lay off two people and put one part-time. This was the only time I ever laid people off.

We started making face shields for a while and found a way through. It took a year and a half, but the engineering consults came back. People had projects they wanted to accelerate. The year felt like a rocket ship. Right after COVID, we won a big engineering consulting job that added 35% to our revenue overnight. Then it happened again with another customer. We were growing really fast, but you also have the tension of having one huge customer and working around their demands.

Before the breakthrough, there was another “Icarus flies too close to the sun” moment. I didn’t really love consulting. It never made me excited to wake up in the morning. We had a four-month R&D project where we lost about $350,000 developing a metal 3D printing system. I was convinced it would be great. We built it, it worked, the machinery was awesome, but when we tried to test it in the market, it failed. I was a bit bored and looking for shiny objects to work on, but the big thing in my head was needing stable, recurring revenue in addition to these big customers.

I really wanted a product. I think a lot of job shops have felt that. I’d been working on projects when bored for years. I once built an all-metal operational clock with a swinging arm. We built a shrink fit machine with virtual holders.

One of the things we’d built was a spindle gripper to run internal production on our own components.

The Spindle Gripper

Noah: Explain how the spindle gripper works.

Michael: A spindle gripper goes into the automatic tool changer of your machine, loading into the spindle like a tool. This whole sub-assembly goes into your spindle, and when air is turned on, it closes. This allows it, like a robot gripper, to grab a component. Parts are loaded onto the table in a tray on a grid. The gripper comes down, clamps on a part in the grid, lifts up, and drops it off in an automated vise.

It does this without an external robot. We invented a new method for machines without through spindle air coolant, which is a huge portion of the market. We soft launched it and sold quite a few. We started with a couple big customers who liked what we were doing. We’ve exponentially grown the automation business from there, adding air vises, a conveyor loading system, and modules. Lately, we’ve focused on delivering total automation solutions.

Noah: You came up with this because you were short on people?

Michael: When I invented it, there were four of us, but I was the only one who could run a CNC machine. For production orders, I had to either turn them away or do them myself. It was built out of necessity – I needed a way to run parts. We used it for years before turning it into a product, which is now our primary business.

Noah: It’s a gripper that hooks onto the spindle. How is it automation? The part still has to get in the machine. Don’t you need a robot, person, or loading system?

Michael: We put at least one piece of automated work holding, like an air vise, onto the table, and have a fully adjustable part tray grid. You need room for a vise and a tray, and one of these grippers goes in the spindle. You set the vise, and using our program generator or automated templates, you upload your program. It’s as easy to program a run of 20 as it is for your setup guy to run one part.

When you hit go, the generated program moves the table so the tray of parts is perfectly under the gripper. The gripper comes down, clamps a part, lifts up, centers over the vise, deposits the part, and the machining cycle runs. For a simple one-operation pallet system, we put that part back and move to the next one. The machine keeps going until the tray is empty. We’ve taken it further with a system using a second vise for the second operation and an integrated flip station for a third operation in the same cycle.

Questions: When did you pivot in your business or life?

What would you like to pivot to?