Beyond watchmaking

You are only as good as your last job. Yesterday afternoon, Josh started a new medical part project. A few hours later, the part was designed, the mill was tooled, holding jig made - and part machined.   Here is what it looks like:

And here is the actual photo, of the part, in his hand.

The thickness of the part is 40 microns, about half of the thickness of a human hair. Diameter: less than half a millimetre.   He posted the part on his LinkedIn page, and it went viral, with 46,000 views. Followers who comment on LinkedIn are actually people in engineering and machining, CEOs in manufacturing, many of whom have never seen such a small part.

Testimony to Manufactured in Australia. The size and complexity of this component takes us beyond watchmaking because while some parts in the watchmaking industry are about this size, they are not nearly as complex, nor challenging to make.

Update from the workshop:

 

As many of you already know, our workshop in Brookvale has evolved over the last years. Not only do we make watches like the NH3 and MK II, we also have a separate business that focuses on making high precision components for parallel sectors. Scientific instrumentation, opto-mechanics, quantum computing and medical parts to name a few. This separate business, called NH Micro has been growing rapidly in the last 3 years, the growth has exposed us to some quite incredible projects. We've talked about a few in this newsletter. Building telescopes that will inquire deeper about the origins of the universe, medical devices that save and improve lives, and technologies that will help revolutionise AI, computing and consumer products. This last week we completed a very intricate, very delicate part that we are excited to share some photos of! The part is used in an opto-mechanical application - think lenses, lasers and parts that have to move very precisely. This specific part is what is called a "flexure". The small, thin cuts in the material intentionally introduce flexibility to the part. The design of the thin cuts is very carefully tuned so that the "flexing" is very defined, resulting in precise motion in the X and Y axes.

Flexures like this are cut on our Wire EDM machine and the blanks are made in our Kern Micro HD - two of the most precise machines in Australia coming together to make complex, intricate parts! To see more of this type of work, and pictures of the parts and processes in the workshop, follow NH Micro on Instagram: https://www.instagram.com/nhmicro/

Made in Australia?

 

Every now and then there is yet another 'news' article featuring yet another Australian watchmaker. It seems that there is no shortage of journalists keen to break exciting news and 'watchmakers' eager to claim the spot under the lime light. Which is fine with us; our goal is not to be at the centre of public attention. We are a young company, still in it's infancy and our time is yet to come. However, for the sake of truth, and for the sake of straightening the record, we are the only Australian watchmaking business capable of designing and manufacturing watch components. Those who claim their watches are 'Made in Australia' are simply deceiving the public and deceiving themselves because they are unable to provide a single proof of any manufacturing capability of making a single component, let alone a complete watch. Watch manufacturing does not happen overnight. Manufacturing is a complex 'product' in itself which combines a number of elements which like puzzle pieces, are perfectly aligned. Those magic ingredients are numerous: people with skill, experience, R&D, high precision machinery, time, vision and determination.  I know that many of you who follow our journey already know what we stand for. You can not be fooled by cheap press and exaggerated claims. However, for those who are new here: I have asked Josh to upload a quick 2 minutes video of a very specific machining process. This video is recorded today, in Brookvale, as a proof of our machining capabilities and as a proof that watch parts we make are Made in Australia. We also hope that one day soon, there will be another true maker in Australia capable of making watch parts and we can't wait for that day to come - this will surely be an exciting newsworthy development.  Two minutes, easy to watch, feel free to leave your feedback. https://youtu.be/Onb-hGiIK4g

Ali Baba's Cave

 

It's all about one thing: who do you know? And when it comes to who do you know in Switzerland, then our man is François-Maxime Greub or as he prefers to be called: Max. Max is a second hand watchmaking machinery dealer, located in the town of La Chaux-de-Fonds, the very heart of Swiss watchmaking. Last night, Josh and myself spent an hour talking to Max about the museum he is building, why old watchmaking lathes are better than new, and how to find that very special tool or machine that will help you ‘get your name on a watch dial’. If you like watches, you’ll enjoy this unique interview and amazing showroom tour. Here is the link: https://youtu.be/sMpszuYa2Yg

NYC CNC in Sydney

Earlier this year, while we were literally unpacking and setting up our newly-arrived machinery, Josh and Andrew got a knock on the door from a young American who happened to be in Sydney. His name is John. About 10 years ago, he got excited about CNC machining and bought a tiny mill which he then installed in his even tinier New York apartment. He started video recording his journey and sharing it on YouTube. Today, he is probably the most influential CNC YouTuber with a quarter of a million subscribers. John now runs his own CNC workshop but continues to tour the US visiting various manufacturers and sharing their stories.

Josh simply could not say no to John - so he invited him into our small workshop.   The video itself is an amazing story of what happens when two young people, crazy about precision machining, bump into each other.

I am sure you will enjoy it.

https://youtu.be/wU_6cY3UBUI

Breeding kangaroos at the top of the Mont Blanc

***Breeding kangaroos at the top of the Mont Blanc

After spending a week in Geneva, I am now heading north towards Neuchâtel and La Chaux-de-Fonds; regions that specialise in the production of just a handful of components, supplying the 'brand names'. While the watch industry is the core, finely-machined components are supplied to the medical, electronic and military industries as well.

So what makes the Swiss swiss? Apart from the obvious - the know-how and super precision equipment - it is the tradition, persistence and unique mindset that makes the Swiss business model so resilient, practically with no competition.

The business model has been unchanged for hundreds of years: from father to son. The small factories are passed on - and with them, the capital, knowledge and connections. But 'passed on' does not mean mere inheritance. Rather, the sons are expected to purchase the business from their fathers, then work hard to pay off the loan while continuing to invest in new technologies. Taking into account that the 'product' must remain price competitive, this is a huge challenge for the new generation. But the kids are doing fine - and so far I have met at least a dozen businesses where I am dealing with 20 or 30-something CEOs who are 'on fire'. Yes, the fathers and grandfathers are quietly watching from a distance, keeping an eye on the deals and transactions but the 'next generation' of Swiss entrepreneurs are firmly seated and in charge.

"Established" is the key word. To be taken seriously and considered as a potential customer, I am expected to be established and have a proven track record. My introduction is brief, and to the point: "a third-generation watch repairer, and the owner of the smallest watch brand in the world with 660 watches sold, all working." "Is this your watch?” - is the first question I am asked. And without exception, it is the rebelde watch itself that opens the doors. Humble, but obviously robust, traditional yet raw. "So which components do you actually make?" is the second question. 
"At this stage, cylindrical components under the radius of 4mm, however we will be soon making the main plates and bridges. This year we intend to acquire a gear hobbing machine and pivot burnisher, and this is why I am here."

The mention of these two highly specialized pieces of equipment often results in a rather puzzled look. "Wouldn't be easier to subcontract those operations to wheel specialists?" And from then on, I go on to explain in length that there are no watch gear-cutting specialists in Sydney, nor in Australia. Actually, we are the only watchmakers in Australia trying to make movement components and our journey to our own in-house movement will be long, unpredictable and bumpy. But we are determined and we will get there, sooner or later.

I am sure that some of my subscribers will question next my statement, but I am taking the risk of being misunderstood: 
‘Swiss made’ is so easy - if you are in Switzerland. There are countless numbers of specialists who will be more than happy to manufacture any component you want or need, even in a quantity of one. If I were to relocate to Geneva, I would have my own designed "Swiss Made" watch movement in less than 12 months. But “Made in Australia” is extremely difficult. Not only because of the enormous financial commitment, but because we are attempting something that is next to impossible. We are pioneering an entire micro industry in our own backyard. And this realization is unbearably painful. Making watches in Australia is more difficult than breeding kangaroos at the top of the Mont Blanc. The challenge which borders on the insane, a useless task destined to fail.

At the same time, and for that very same reason, even the little that we manufacture right now is truly very special and impressive; probably more so to the Swiss than Aussies. But our time is yet to come...

I will leave you now with just two mind-bending thoughts:  I have met a Swiss spring-maker who manufactures one type of spring. He is so sub-specialized that one of his machines has been making that very same spring for 13 years, 24 hours per day, seven days per week. One spring, one machine, 13 years, non-stop.

The second case: I meet the20-something CEO of a stem-making company. After learning that we have a CNC machine capable of full industrial production, he asked how many watch stems I make. A dozen a day, if that, I told him. Which material do I use? Stainless steel, 316L. "Fine", he said. "We make 1,200,000 stems per month and sell them for 17 cents apiece.” “This is crazy,” - I replied – “the cost of the material alone is twice that much! How can a Swiss-made stem be cheaper than one made in China?" He laughed - his family has been making watch stems for over 70 years, they have hundreds of stem making machines ranging from the old manual and CAM machines to the latest CNC ones, all working, all paid off. They are using the steel they have had in stock since the watch manufacturing crisis of the 70s. And yes, more than half of their output goes to China – because the Chinese are happy to pay less for more.

The best way to describe my Swiss trip would be a roller-coaster ride. And I am yet to share with you some of the truly life changing encounters. 
Stay tuned! 
Nick

Germany Update, Part One

***Josh and Tyler reporting from Germany: "No snow, beer too cold!"


Well, not quite - but probably not too far off either. Yes, the boys are having fun, and so far, plenty of good news. Our CNC lathe is ready; the official training has commenced and coding is well under way. With a bit of luck, by the end of the week they will be making their first watch components!
Sydney delivery and installation date is now June 1, which is in accordance to the previous estimate. The other good news is that the 316L steel samples obtained from an Australian supplier are within the required tolerances. So at least we won't have to air freight 4 metre long rods from Germany – or at least not for components smaller than 3mm.

The lathe itself is the crucial watch parts making machine, and this particular model is well used by both German and Swiss makers. Anyone from Nomos to Lange has it in operation so we know that machine is capable of producing the finest watch parts. Of course, it will take us many months - if not years - to master it, but we are definitely heading in the right direction.

Another piece of good news is that we should be able to make even more complex parts than we originally anticipated: the 6-axis lathe can accept some special 'attachments' capable of cutting very fine pinions as well as gears. However, we will be limited by the diameter – for components larger than 3mm in diameter (main spring barrel for example) we would need one more CNC lathe...


Exciting days ahead - so stay tuned for more!

Happy collecting,
Nick

Hearth of Swiss Horology

***Helvetia, here we come! 

On Sunday afternoon we crossed the German-Swiss border near Schaffhaussen, the home town of IWC.

The wide, no-speed limit German autobahns were behind us, and the narrow country roads of Jura led us slowly to Zurich then further south to La Chaux-de-Fonds, the hearth of Swiss horology. We were on the mission: to visit three second-hand precision machinery dealers who specialize in watchmaking.

Before I go any further: while Switzerland and Germany are neighbours and while German is one of 3 languages officially spoken in Switzerland, there is a huge distinction between the two countries and their citizens.  I am not going to sugar coat it:  I like dealing with Germans, and I absolutely despise the ever-present Swiss corporate arrogance. The Swiss simply lack the humbleness of the Japanese, the flamboyance of southerners, the openness and warmth of eastern Europeans, the American loudness, the curiosity of Scandinavians or, dare I say it, the quirky, self-mocking English sophistication. They cannot be impressed, bought or excited. Swiss don't smile.

Doing business with the Swiss is never a mutually beneficial – from the moment you step on their soil, it is painfully obvious that your presence will be only tolerated for as long as you are happy to pay ridiculously overinflated prices.  And their cuisine just sucks: too greasy, too heavy.

Luckily, the small Swiss second-hand dealers are refreshingly different from the large corporations so despite my prejudice, and despite the fact that most of them only speak French, we do get along well.  But the truth is simple: like it or not, La Chaux-de-Fonds is the epicentre of the world of watchmaking and if you are to buy a precision second-hand tool, this is the place to look for one.

When watch corporations acquire new production lines, the old equipment is on-sold to second hand dealers. The business is still done in secrecy, strictly guarded from newcomers, conducted by third, fifth or seventh generation of family members.  In a city of 35,000 where 20 percent of the population directly work in the watch industry, everyone knows everyone. In just a couple of hours, we've heard all the current gossip: who is hiring and who is firing, who is expanding the manufacturing capacity and who is selling the equipment due to overstock of watches. In a radius of just 5 kilometres, we'd seen the production facilities of 20 brand names. What amazed us, once again, is how closely those 'brands' are interconnected and how closely they rely on each other and their suppliers.

What we call 'in-house' production is more (as Josh said) an intricate web of incestuous relations. Many own shares in each other’s businesses, they sit on each other’s boards, use the same highly specialized component makers, the same raw material and operate the same parts production machines.  And when appropriate, are happy to stab each other in the back.

We saw machines which were 'still hot' just pulled out of production and those that had been sitting in storerooms for 50 years, never to be sold.  And the variety and quantity of stock on offer is simply amazing.  "This one came from xxxx and here is the one from xxxx factory. Would you like the workbench from xxxx? We just got delivery of eight." We saw a row of 50 gear cutters (hobbing machines) and another row of 50 cam operated lathes. This was the very equipment used to manufacture parts for your 1970s Omega Speedmaster or Rolex Submariner, Longines and Zenith. 

Unfortunately, most of them were highly customized, were missing crucial tools or simply were too complex to operate. Or just too heavy or way overpriced. But all of them are still amazingly precise, and when restored would outperform modern CNC machines. Swiss don't throw anything away and you can get anything you want, if you have enough money.

After a couple of days of roaming and seeing thousands of machines, we'd got a fairly good idea what we could use in rebelde production. But we were not in hurry to part with our hard earned cash. We were there to build relationships and make ourselves known as future customers.  More detailed report will follow, including some very exciting photos!

On Tuesday, we decided to visit a company specialising in a very specific area of watchmaking. As much as I would love to, I cannot disclose their name. Let me just say that they produce components so crucial to a watch that even the most prestigious brands are dependent on their supply. Without them there will be no Swiss watches. Now, I have to admit that I was not aware of their importance. If I was, I probably wouldn't have bothered to call. But we were 'in the area' and they actually sell a machine which produces that crucial component, so we had nothing to lose.

The moment we arrived in front of their building I knew that we had actually made a mistake.  But it was too late to turn back - so we bravely stepped in.

Even today, 24 hours later, I still can't figure out what really happened.
The recollection of events is so incoherent - like the recollection of a boxer who was knocked out in the first blow, waking up the next day in hospital.

First, we watched the 20 minute corporate video, probably directed by some Hollywood director. The message was simple: our host was in the watch business before Rolex and before Lange and before anyone else.   The business is privately owned, which is cool, but as the only supplier of the most critical components, they enjoy their own status so much that no amount of money can buy their independence. Yes, they do have a machine to sell to us (although they never sold one to Australia or Africa) but they really don't see the reason why we would want one.

When I was finally allowed to speak, I pointed out that we'd done our homework. We know that we can afford their machine - while we do come from Australia, the money is not an issue. Quickly Josh took over: he clearly explained that we understand their manufacturing technology and that we don't think it is rocket science. We can be trained and we are looking for a partnership.  While the machine itself is impressive, both of us confidently concluded that the machine will be outdated eventually, and that we will be investing in a 'niche of the niche' so the resale value of their machine is zero - and that is zero in any currency.

Our host agreed. Fine, if we insist, the machine can be ours for $300,000. However, the contract of sale will include a clause which stipulates that we will be trained to operate the machine but we will not be trained to actually make components; the machine itself will be supplied with no tools, therefore it would be our job to work out who the tool suppliers are and which material to use to produce components.  Roughly, if we are clever enough, in 20 years we'll be making that critical component 'down under'.

In my books, this sounded like an insult. The time came to shake hands and thank our host for the opportunity to learn more about corporate Swissness. To keep the record straight: on the way out we got two Swiss chocolates wrapped in company colours. But the aftertaste is still bitter.

The good news is that a number of small independent watchmakers in both Germany and Switzerland are working hard and investing heavily in watchmaking technology.  In 5 or 10 years from now, there will be other players in the field. No one stays on the top forever, and often an underdog comes with a revolutionary or cost effective solution and solves the 'unsolvable' problem.

rebelde is not in a hurry, and right now, we already have so much on our plate to keep us busy for years to come. However, after this meeting, we clearly defined our priorities: we will be doing business only with suppliers who see us as equal and who understand and respect our mission. rebelde will bow down to none!

[to be continued...]