Charles R. Goulding and Preeti Sulibhavi cover the most recent AM Investment Strategies Roundtable discussion.
The November 2, 2023 webinar was full of insight from industry giants. The panel consisted of Troy Jensen, Jeff Graves, Maxim Lobovsky, Scott Dunham, Arno Held, and Yoav Zeif. The roundtable discussion concerning the future of investing in 3D printing was full of caution and optimism.
Here are some main takeaways from each panelist:
Yoav Zeif – Stratasys, CEO
The industry is strong, but stocks are low according to Zeif. He identified gaps in the industry. That includes an overly micro-economic outlook. Stratasys is focused on bringing new solutions that include hardware as well as new materials and improved software. Stratasys is working on improving its customized workflows as well.
Jeff Graves – 3D Systems, CEO
Graves began by sending everyone’s thoughts regarding the Israel-Hamas War. New engineering materials and new software platforms are in the works at 3D Systems. Graves highlighted low consumer spending due to high inflation. 3D Systems is taking a hit in its dental product sales.
On the manufacturing floor, customer interest in adopting 3D printers is evident. However, macroeconomic and geopolitical forces seem to be hindering the scaling of this technology.
Maxim Lobovsky – Formlabs, CEO
According to Lobovsky, making high-level technology more accessible in terms of cost is fundamental to market growth. He cited a quote from William Gibson stating, “The future is already here. It’s just not evenly distributed yet.” Formlabs aims to bridge this distribution gap. Furthermore, he noted the need for improvements not only in hardware but also in software, materials, and post-processing.
A general observation in the industry is the slowed rate of growth. Nonetheless, this has opened avenues for enhanced collaboration and consolidation opportunities.
Arno Held – AM Ventures, Health Managing Partner
Held spoke of things that can be produced from 3D printing technology including electromobility and clean-tech applications to solve climate challenges. 3D printing applications are not limited to aerospace/defense, etc.
To realize big volumes, the industry must stabilize existing technologies and improve the quality of current products and infrastructure, in addition to new products and platforms. This will help turn 3D printers into real manufacturing equipment.
Scott Dunham – AM Research, Exec VP
He is investigating market trends, the size of the market, and the economic outlook. He posited that Industry 4.0 can’t exist without the help of 3D printing. Despite the present challenges, the long-term prognostication is positive. Larger organizations mostly have an advantageous stance for turning the industry’s future into a more progressive one.
While observing a decline in stock prices, the assertion is that 3D printing technology’s necessity is paramount at this time. It’s seen as a solution to the hurdles and difficulties currently plaguing the market.
Every panelist showed enthusiasm for the forthcoming Formnext 2023, a 3D printing incident in Germany.
The Potential of the Research and Development Tax Credit
The Research and Development (R&D) Tax Credit, which is now a permanent fixture, is available to companies developing new or improved products, processes, and/or software.
3D printing can contribute to a company’s R&D Tax Credits. The salaries of technical employees who create, test, and revise 3D printed prototypes could factor into the percentage of eligible time spent for the R&D Tax Credit. Likewise, if used as a strategy to advance a process, the time spent including 3D printing hardware and software can be classified as an eligible activity. Lastly, the costs of filaments used during the development process could potentially be recovered if they are used for modeling and pre-production.
Whether 3D printing is used for the creation and testing of prototypes, or for final production, it is a clear signal that activities eligible for R&D Credit are occurring. Companies that incorporate this technology at any stage should take into account the benefits of R&D Tax Credits.
Conclusion
The webinar affirmed the necessity for consolidation within the industry. It brought up the unmaterialized Stratasys acquisition of Desktop Metal. Queries regarding 3D printing service bureaus were put forward and it was collectively accepted that they too contribute to the future commercial triumph of the industry. In essence, the real metric of success is introducing this technology on production floors.
“Why did the 3D printer go to therapy? Because it had too many layers of unresolved issues!”
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