Between housing and real estate prices, insurance, taxes, lack of government support, environmental protections, requirement to pay for health insurance for employees,layers of regulations, minimum wage laws, sexual harassment lawsuits (it only takes one and your company is over)...you just can’t operate a physical space with drills, laser cutters, saws, advanced electronics and machinery at a profit in America anymore.
TechShop was the last gasp of American industry having any sort of future. With Tech Shop, we can also probably say good bye to a good deal of real trade skills people learn at these locations. They really tried to make it work. I have spoken to some of their founders myself - The amount of work it takes to set up even one of these facilities is simply staggering. If I were to show you the spreadsheets, business plans and research these guys invest to open ONE shop it genuinely rivals that of a full startup per location.
My heart really breaks.
There are a few companies able to survive with physical presences like this in the Bay Area now, but they are all backed by the power of Jabil, Flextronics, Autodesk. Some small indie chain can’t make it in these conditions.
Unfortunately, we can expect more of this as a country. We are one recession away from a full republican route (they are doing a spectacularly awful job and deserve to be thrown out) and all signs are pointing to a fully socialist government being next in line.
Socialist governments are not known for their desire to roll back worker protections, undo environmental protections and regulations, nor is their focus on enabling businesses. Although I will say Canada seems to be doing better than us in many ways when it comes to accelerating genuinely valuable little companies like TechShop.
I am genuinely beginning to advise people to consider moving to Asia where innovation is able to happen, it won’t be done in a America anytime soon.
Between Trump and his socialist successor - and the wonderful incompetent state of California I don’t have a good feeling about American innovation anymore.