It takes tremendous balls to start a machining company from scratch. And, maybe a little extra chutzpa to start a shop that primarily runs cam screw machines making millions of parts for automotive.

After 23 years working in job shops and running a small farm, Karl Drasgow cashed out his 401K to found Drasgow Inc., a Wickman job shop in Gainesville, New York, in 2003.

In the interview we talk about how he made this happen–from running his first screw machines in a barn, to taking local entrepreneurship classes, to fixing up cam machines built in the ‘70s, and waking up at 2 AM to shovel

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Link to Graff-Pinkert’s Acquisitions and Sales promotion!

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Interview Highlights

Karl Drasgow’s professional journey began in high school when he attended a vocational technical school, initially studying automotive repair before discovering his aptitude for machining.

After high school in the 1980s, he gained diverse manufacturing experience across four different shops, developing expertise in NC mills, CNC lathes, and tool room work. His pivotal career moment came when he began working with Wickman multi-spindle screw machines, which he operated for 16 years at one company. During this time, they needed someone to manufacture a specific key body part, and Karl saw an opportunity.

While working full-time, Karl had already developed his entrepreneurial instincts by running a small farm business, raising and selling pigs and beef to his coworkers. He had built several barns and set up a small machine shop where he made custom parts for agricultural and motorcycle applications. This early business experience proved invaluable in Karl’s subsequent business ventures.

In 2003, Karl cashed in his 401k and purchased two Wickman multi-spindles from Graff-Pinkert, which helped to finance part of the purchase. He initially operated those machines in his agricultural repair building, later expanding to four machines across multiple buildings.

Five to seven years into running his business, Karl recognized he needed to evolve from being a technician in business to becoming a true business owner. A local acquaintance recommended the Center for Entrepreneurial Leadership program at the University of Buffalo, which proved to be transformative for Drasgow Inc. The program is designed specifically for hands-on business owners with about five years of experience. Karl describes it as a mini-MBA education covering financial reports, human resources, and general business management.

The program’s second semester paired Karl with a mentor and required him to present his business to the class, facing questions that helped identify areas for improvement. He says the experience not only enhanced his business acumen but also taught him how to evaluate other businesses critically. He supplemented this education with additional community college courses in HR and business management, and participated in Rochester’s TEND program, which encouraged bigger business aspirations.

Today, Drasgow Inc. is an ISO-certified tier-two automotive parts supplier. Karl has found his niche in high-volume production using Wickman cam operated screw machines that can produce parts with cycle times 10X the speed of a CNC lathe that can cost hundreds of thousands of dollars more.

Rather than investing in new multi-spindles, which can cost hundreds of thousands or even millions of dollars, Karl purchases used Wickmans for $20,000-$50,000 and invests $50,000-$80,000 in rebuilding them. This gives him a huge cost advantage ...