When companies of any size want to manufacture something, they face two main challenges, Werner said. One is capital, which is often the biggest constraint since factories aren’t cheap. Fortunately for the nuclear industry, that shouldn’t pose much of a problem. “They’re awash in capital right now,” she said.
But the nuclear industry isn’t immune from the other challenge all manufacturers face, which is a lack of human capital. “We haven’t really built any industrial facilities in 40 years in the United States,” Werner said. As a result, we’ve lost the muscle memory. “It’s like we’ve been sitting on the couch watching TV for 10 years and then getting up and trying to run a marathon the next day. It’s not good.”
After decades of offshoring, the U.S. lacks people experienced with both factory construction and operations. “There are for sure some people in the United States who have been doing this, but we don’t have the quantum of people that we need for everybody to have a full staff of seasoned manufacturing people.” She not just talking about machine operators, but everyone from factory floor supervisors all the way up to CFOs and board members.
The good news is that Werner sees a lot of startups, nuclear and otherwise, building early versions of their products in close proximity to their technical team. “That is pulling manufacturing in closer to the United States because it allows them to have that cycle of improvement.”
To reap the benefits of mass manufacturing, it’s helpful for startups of all stripes to start small and scale up. “Really leaning into modularity is very important for investors,” she said. The modular approach helps companies start producing small volumes early on so they can collect data on the manufacturing process. Ideally, that data will show improvement over time, which can put investors at ease.
The benefits of mass manufacturing don’t happen overnight. Companies will often forecast cost reductions that can result from learning through manufacturing, but it might take longer than they expect. “Often it takes years, like a decade, to get there,” Werner said.