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#3DPrintConf
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THE BRONZE AGE 2.0Rationalizing the 3D UniversePolicy, Context and Strategy
in an Emerging Industrial Sector
Christopher R. O’DeaInside 3D Printing, April 23, 2013
Photo: “Molten Bronze in DMSE Foundry“ Massachusetts Institute of Technology, School of Engineering, Department of Materials Science and Engineering
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Industrial Opportunity Driving Rationalization
• Companies:• Ex One• Arcam• ProtoLabs
• Information providers/analysts• Lux Capital• MIT Technology Review
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The Digital Blacksmith
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3D and Industrial Manufacturing
…”A key cause of death”
Daniel Holland, Morningstar
In Investors Business Daily online, February 7, 2013
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Fundamental Questions• Why Metal?• Industrial or Consumer?• Complement or Substitute?• Material or Machine?• Customer Service or Customer Capture?• Innovation or Disruption?• Can National Policy Influence Global Trends?
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How Investors Look at Opportunity• It has to be a business
• End-user clearly defined• Value proposition defined and sustainable• Revenue and profit models clear
• Excitement is expected – hype is a red flag• Core requirements:
• Addressable markets:• Industrials• Professionals• Consumers
• Company offerings:• Printers• Services• Materials
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Downstream from Technology
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Business Model Innovation
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XONE Spotlights Metal• Shines the spotlight on industrial metals• Increases transparency and focus in AM sector• Manufacturing/OEM base: Ford, Boeing, BMW, Cat• EXMAL
• Leading edge materials lab• Certify one new material every six months/ 9-24 mo. pipeline• 12 industrial materials in process
• Delivery system:• M-Flex machine; unveiled at IMTS 2012 Chicago• Industrial-grade metal/ceramics; 10X speed increase
• Increasing PSC from 4Q goal; 45% of revenue
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Arcam’s Leg Up – Titanium Hips
Business
• Access medical contract manufacturing expertise:• Feb. 2013 alliance• Option to acquire DiSanto
• 2012 MDF, Oak Ridge• Application development• Aerospace exclusives• Fraunhofer Dresden• Tapping US markets:
• OMTEC Chicago, June 2013
Science
• Fully-dense metal• Electron beams vs. Laser• Orthopedic implants• 30,000+ implanted• EU 2007, USA 2010• Serves Ortho and Spinal
implant clients• Validated powder supply chains• Powder handling/safety
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Why is this man not smiling?
Manufacturer: 3D printers
Founded: 1997
CEO: Magnus René
Headquarters: Mölndal
Number of employees: 53
Turnover: 139 million (2012)
Profit: 15 million (2012)
Largest single shareholder: Industrial Development Fund, owns 25 percent
(Data & Photo: it24.idg.se)
“Duktiga människor och uthållighet”
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Engineering Tool-Neutral Value
BDTG.DE Bertrandt
• Digital engineering unit• Strong Auto and Aero• Breaks out 3D printing• Near 30% ROE• 30% institutional owned• Increasing institutional base:
• Net new holders• Net increased positions
PRLB Proto Labs
• Machined and IM parts• $80 billion global market
• Can 3D players challenge?
• Big Market: 3 mil. CAD• 30% Revenue, 50% ROIC,
60% GM• Speed thru Software• Tool Neutral• Brand power:
• Integrated, reliable service• Speed, pricing, convenience
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Consumers: “Odds are against You”• Will consumers care that products are made by 3D printing?
• Most will not• People care about good value• People care that the product performs as advertised
• Will consumers really print a refrigerator handle?
“Even if you have a 3D printer at home, it will not offer the right material, color, surface finish, texture, strength properties, and build volume to meet your needs.”
• More likely outcome: service bureaus, online outlets
• Other issues:• Lack of user-friendly design software• Increasing competition• Potential commoditization
Terry Wohlers, Seeking Alpha, February 26, 2013/Morningstar
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Policy Drivers - EU• Additive Manufacturing Alliance integrates the research of
Germany's 11 scientific and engineering institutes• Engineering, materials, technology and quality
• Industrial applications and projects• Focus Industries:
• Automotive, aerospace, bio-medicine and microsystems.
• National and international research projects• The Alliance in Action:
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Policy Drivers - US• NAMII – can the U.S. catch up?
• POTUS highlighted AM in State of the Union
• NAMII Progress• First Project Call in November; Defense Manufacturing Conference• $4.5 million awarded to initial 7 projects across AM spectrum;
winners responsible for $5 million matching funds.• Still a “pilot” for Manufacturing Institute Network; short-term focus
on market impact within several months.
• NCDMM• Driving NAMII, blueprinting the Institutes with defense focus?
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“AAM” – A New Industrial Sector• Auto
• Aero• Medical
• Combined $8.4 billion by 2025 (Lux Capital projection) tracks Wohlers forecast of $6.5 billion by 2019.
• Dental revolution rolling along• Surgical applications increasing
• Organ research underway• Lighter, stronger materials – cabins, airframes, seating
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3D Market Segmentation
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What’s Ahead? Creative Disruption
• Production in 12 plants in 8 countries
• Sales in 83 countries• Net sales MSEK 7,081
(2011)• >110 employees
dedicated to R&D• 700 patents
• Output devices• Technology platform• Knowledge network• DirectSpare links to EU• Leverage powder lead• Expand offering/service
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Creative Disruption• Sweden’s industrial elite shake up AM
• Höganäs - fcubic deal reverses the “razor blades” play
• Powder maker’s challenge to 3D machines raises stakes
• Lindengruppen bid creates strategic threat in metals
• Private capital funds long-term approach and R&D
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Scandinavian Designs
THANK YOU