Hernan Ricaurte of Ricaurte Precision Inc. | Capacity Ep. 18
Hernan Ricaurte’s story begins in New York City, where his parents settled before moving the family to Southern California when he was seven. His father worked two machining jobs to provide stability, eventually starting the company that would become Ricaurte Precision Inc. (RPI). As a teenager, Hernan swore off the shop after one rough day — and stayed away for nearly three decades.
Instead, he built a career in the medical field, spending twenty years between the U.S. and Japan. Immersed in Japan’s culture of discipline and detail, he absorbed lessons that now inform how RPI operates today. When he finally stepped into the family business, RPI was at a crossroads, and Hernan saw the chance to build something new. Since taking the reins, he has guided the company through AS9100D and ISO 9001:2015 certifications, major capital investments, and multiple ERP upgrades (now running Fulcrum), all while increasing revenue to nearly four times its starting point and reshaping the company’s culture.
Discipline first, then everything else
When Hernan arrived, RPI had capable machinists but little structure for growth. No ISO/AS certification. Paper systems. Tribal knowledge.
He started with the foundations:
- Quality systems and structure. Earn certifications, standardize processes, and make quality planning a habit a part of the everyday flow.
- Modern ERP as a workflow backbone. Move from paper, to digital, to a system that actually connects quoting, scheduling, documents, and data to the work cell.
- Capital investments with a spine. Buy capability that unlocks new work (e.g., five-axis with palletization), then hold vendors accountable.
The result wasn’t a one-time transformation. It was a ratchet: process discipline unlocked better use of machines; better use of machines funded better people and technology; better people made the process stick. Hernan built a team of action-oriented players, who push for motion over paralysis by analysis.
“Not making the decision is a decision — and not the one we want.”
A team sport, not a family
RPI uses sports language on purpose. Teams are built, roles are clear, and the scoreboard matters. Hiring misses are corrected quickly (often within 1–2 weeks). New hires are trained by the best cultural carriers, not only the top technicians. Once a job hits your station, you own it. ERP, work instructions, tool lists, and programs are there so you can move, not wait.
This isn’t “nice” culture; it’s performance culture. Passion is encouraged, and it’s also coached. Direct feedback is normal. So is vulnerability.
Four disciplines of a manufacturing business
Hernan frames the job as a balance across four disciplines:
- Culture: values, leadership behaviors, and how decisions get made.
- Making the thing: capability, repeatability, and velocity on the floor.
- The business: pricing, costing, cash, and the P&L.
- Sales & marketing: telling the truth about what you can do and proving it.
RPI reviews all four monthly and quarterly, with metrics and ownership. That cadence keeps the organization from over-rotating into “just ship parts” or “just sell” seasons.
Growth fueled by bold bets and candid partners
Ricaurte Precision’s growth has been fueled by bold investments and brutal honesty. Before reaching $5 million in revenue, Hernan committed to a $1 million Matsuura five-axis pallet system, forcing the company to sharpen processes and make the machine pay for itself. That same decisiveness extends to relationships — RPI is direct with vendors about ROI and transparent with customers about GD&T, tolerances, and finish requirements, often acting as “the adult in the room.” For Hernan, risk and candor are part of the same playbook: set clear expectations, hold partners accountable, and use discipline to build trust.
Why mid-market manufacturers have the edge
Hernan sees RPI’s position right in the sweet spot size-wise, with some room to grow. Smaller shops often struggle to keep pace with technology, training, and documentation, while very large organizations get slowed by bureaucracy. Mid-sized manufacturers occupy the sweet spot: big enough to adopt automation, ERP, and AI-driven tools, but nimble enough to move fast. In industries like aerospace, defense, and medical devices, that balance of scale and agility is what customers demand.
AI is already part of RPI’s hiring filter for management roles. Candidates are expected to show how they use AI to work smarter; those who can’t demonstrate that don’t move forward. The reason is simple: AI and connected systems don’t reduce responsibility, they raise the ceiling on it. With Fulcrum delivering live data, digital work instructions, and workflow automation throughout, RPI trains its team to document more, decide faster, and combine tool proficiency with sound judgment. At RPI, technology is table stakes. Judgment is the advantage.
Watch the episode
If you’re building a modern precision manufacturer — adding five-axis, standardizing process, rolling out ERP, and asking your team to make more decisions at the edge — this episode is for you.
Capacity Podcast: Hernan Ricaurte, Ricaurte Precision Inc.
Topics include: growing from a family shop to a precision manufacturer, investing in automation and ERP, building culture that drives decisions, and why mid-market manufacturers are positioned to win in aerospace, defense, medical, and space.
