The Story of Arch Systems: Building the Future of Manufacturing Intelligence

The Story of Arch Systems: Building the Future of Manufacturing Intelligence

The journey of Arch Systems began not in a garage, but in the basement of a house near Stanford University. In a recent episode of Category Visionaries, co-founder Andrew Scheuermann shared how a friendship forged during PhD studies transformed into a partnership that would reshape manufacturing optimization.

From Stanford to StartX

Before Arch Systems, Andrew was living parallel lives. While completing his PhD in engineering at Stanford, building advanced machines and setting world records in electronics devices, he was also helping build StartX, a top startup accelerator. “I was helping a whole bunch of other amazing entrepreneurs start their companies, kind of rubbing shoulders with really cool people,” Andrew recalls. “Evan Spiegel Founder, Snapchat, is on the staff. In the early days, DoorDash founders were in one of the programs that I led when they were just kind of starting with the idea.”

An Unexpected Partnership

The story of Arch’s founding has an interesting twist. Andrew was initially trying to help his future co-founder find a business partner. “I was like, ‘oh, you need another Co-Founder. You need a business partner to come in and help you take this to market and think about the right way to go,'” Andrew shares. After numerous conversations, they realized they were each other’s perfect complement. “The things that he was worried about, I hadn’t answered for. The things that I was worried about, he hadn’t answered for.”

The First Pivot: From Wells to Manufacturing

Arch’s original incarnation, called Well Done Technology, started with a World Bank grant to monitor wells in Tanzania. “Think about analytics. Of the many GEs over here saying, we’re going to digitize the jet engine, predict everything that happens so a jet engine never breaks. On the other side of the World Bank’s working with my Co-Founder… saying, what if we could predict when a well is going to break and people aren’t going to have drinking water anymore?”

This evolved into a modular IoT platform aimed at various industries, but the team discovered a fundamental mismatch between their offering and customer capabilities. Despite interest from enterprises wanting to build their own AI models, none had the necessary talent or resources to succeed.

The Manufacturing Focus

The pivotal moment came when they decided to focus exclusively on manufacturing optimization. This wasn’t just a minor adjustment – it was a complete transformation of their business model and approach. “When we finally got that focused on a vertical specific solution, we built the whole thing right,” Andrew explains. “We built the analytics and the intelligence and were able to start providing awesome optimizations inside of our customers.”

Strategic Partnership and Scale

A key turning point was their partnership with Flex, one of the world’s largest manufacturers. Rather than rushing for revenue, they took a long-term approach. “We almost did free work for them for a long time and they essentially gave us access to all of their factories worldwide,” Andrew shares. This strategic patience paid off – today, they’re “connected to close to 10,000 machines and 100 plus factories, 15 countries working with a lot of the biggest names out there.”

The Future: Beyond Data Collection

Looking ahead, Arch Systems is pursuing an ambitious vision centered on what Andrew calls “cores” – combinations of machine connections and pre-built analytics. “Today we focus on surface mount technology and injection molding… in the next three to five years we’ll be in far more than two of these core processes,” including “CNC machines… semiconductor, packaging, paint shops.”

But perhaps most exciting is their new technology bet, Action Manager, which Andrew describes as “an intelligent system that helps automatically alert on the conditions happening in the factory, send it to the right people and lets you build these knowledge playbooks where the factory experts have a place to put all their knowledge.”

From a basement near Stanford to revolutionizing how some of the world’s largest manufacturers operate, Arch Systems’ story is a testament to the power of strategic patience and focused execution. Their journey shows that sometimes the path to success isn’t about rushing to market, but about taking the time to build something truly valuable.