3D printing leader Stratasys: On-demand customization enables Chinese manufacturing

As a disruptive technology, 3D printing enables the creation of extremely intricate and personalized products. Whether you want an artificial heart, or a car part. Its principle is very simple. It is based on a digital model and accumulates materials layer by layer to create a physical object. It is an additive manufacturing and rapid prototyping technology.

Based on this technological advantage, 3D printing is regarded as an important supplement to the manufacturing industry, and therefore has received the attention of government departments around the world. Especially in China, with the advancement of China's manufacturing transformation, the importance of 3D printing will become increasingly prominent. According to IDC, the global 3D printing market will grow to $35.4 billion in 2020.

However, the development of the industry is not as hot as expected. Due to technical difficulties and high cost barriers, 3D printing still needs more in-depth exploration to achieve mass production and commercial use. As a result, from the past few years, the popularity of 3D printing in the international context has begun to cool down, many capitals have returned to calm, and more companies have left the market sadly. There are different opinions in the industry about the future prospects of 3D printing.

In this regard, Michael Agam, president of Stratasys South Asia, said in an interview with CEConline: "In the past few years, many people have seen the hype and 'disillusionment' in the 3D printing market. By now, it seems to have entered a period of enlightenment, and people are beginning to truly understand the capabilities and limits of this technology. Regardless of how analysts assess and interpret market volatility, there is no doubt that the market is growing.”

As Michael Agam said, while the 3D printing craze has faded, the development of the industry has only really begun. The application of 3D printing technology in aerospace, medical and other fields is rapidly strengthening, and the industry has begun to move from concept to application. At this stage, Stratasys focuses on application problems in different scenarios and competes in the core market with innovative solutions. At this stage, Stratasys focuses on application problems in different scenarios and competes in the core market with innovative solutions.

Diversified solutions

As a pioneer and leader in the 3D printing industry, Stratasys has thirty-two years of technology accumulation and a high market share by virtue of its first-mover advantage and customer awareness. In 2019, Stratasys' full-year revenue was $636.1 million, of which the product segment, which consists of 3D printers and materials, accounted for the largest percentage of total revenue. Product revenue was $430.7 million in 2019, while services segment revenue was $205.3 million.

In order to stay ahead of the technology, Stratasys places great emphasis on R&D innovation. It is understood that Stratasys has invested 14% of its revenue in the past ten years in its headquarters in Minnesota, USA and Rehovot, Israel, and its research and development projects may take 5-15 years to achieve technological breakthroughs. To release new materials and new printers, Stratasys collaborates with material suppliers around the world as well as systems and mechanical engineering design experts within the company.

The research for these projects often begins with a specific client need. For example, Stratasys' latest PEKK-based high-performance thermoplastic, Antero 840CN03, is a product used in space terminal applications according to the needs of NASA. The above performance can satisfy customers.

Michael Agam believes that Stratasys' greatest competitive advantage is "experience and knowledge of the technology." “Being an industry pioneer means Stratasys has a large customer base who have been our inspiration and driving force for the next generation of 3D printing solutions,” said Michael Agam.

It is understood that in China, Stratasys is divided into two business segments for different customer groups, providing consumer-grade products and industrial-grade products, as well as customized production services. In terms of product concept, Stratasys' positioning is not only limited to 3D printing suppliers, but also focuses on the needs of customers, helping customers to better utilize the product's maximum performance and obtain more profits.

In 2018, Stratasys began to provide 3D printing services, mainly for customers with customized needs, and a total solution including additive printing, design, post-processing of printed parts, in addition, some Customers who take a wait-and-see attitude will decide whether or not to invest in a purchase based on the user experience after they have tried specific solutions.

"Most clients approach us without a clear idea of how to integrate this technology into their existing workflows, and some have not yet The transition to digital transformation. So we invite customers to share samples of the parts they want to print, then work with us to find the best 3D printing solution (in terms of technology, printers, printing materials, etc.) Get a higher ROI than the way they originally made it, or overcome challenges they never knew they had before consulting our experts. Either increase the efficiency of the business, or enable more applications for engineers. So far, Small businesses and multinational companies have responded well, and we are getting more and more orders from China," said Michael Agam.

The majority of Stratasys' customers are from the industrial and machinery industries, such as automakers, OEMs and consumer electronics manufacturers. In the production process of enterprises in these industries, there are high requirements for prototypes at different design stages. "We've seen customers print more than 200 models of a future product, each of which looks the same at first glance, but differs in ergonomics when held in the hand."

In emerging industries such as education and healthcare, Michael Agam cites a large number of colleges and technical schools that see 3D printing as an essential skill for engineering graduates. Practitioners in the healthcare industry are replacing 2D scans with 3D printed patient models for surgical analysis prior to complex procedures, resulting in better outcomes while reducing surgical trauma.

"That's why we need to introduce more solutions for specific industry applications, including our recently released digital anatomy printer. Our customers' needs are what drives us. We've seen in the past that As the customer transitions with us as a manufacturer, customers begin to understand and have the ability to make precise demands on the quality of printed parts and total cost of ownership (TCO) required by their business. We also offer different product lines accordingly To meet the needs of industrial users, enterprise users and smaller organizations. Our high-end systems are easier to integrate into industrial customers’ manufacturing processes, and our small printers are suitable for small and medium-sized office environments or corporate model stores.” Michael Agam Summarize.

Enable Made in China

In recent years, Stratasys has regarded China as one of its three core global markets, and bet on China, aiming at the transformation and upgrading of the manufacturing industry. In order to maximize the effectiveness of its products, Stratasys not only sets up branches in major cities in China, but also employs local experts to understand the specific needs of Chinese customers.

"China is one of several major sources of business growth for Stratasys, and our team is very focused on driving the success of our customers in China, especially those we believe can give 3D printing a competitive advantage in the design and manufacturing cycle. applications,” said Michael Agam.

Judging from the current situation, China's 3D printing is in the transition stage from the late stage of introduction to the early stage of growth. Compared with the global trend, China introduced 3D printing technology late, and there is a certain gap with foreign countries, but the industry has also developed rapidly in recent years. According to the survey data of China Business Industry Research Institute, the size of China's 3D printing market in 2019 is about 3.36 billion yuan. With the corresponding maturity of China's 3D printing technology, the demand in aerospace, automobile and other industries will continue to increase. It is estimated that the scale of China's 3D printing market in 2020 will be nearly 5 billion yuan.

"There are many research and analysis reports on the 3D printing market, and I am afraid that none of them can predict the future of this market with 100% accuracy. Well-known industry analysts at Wohlers Report pointed out that China and Japan are in the Asia-Pacific region. The total installed equipment accounts for more than 35% and 30% respectively. We believe that the level of acceptance and application of this market is on the verge of approaching a few leading countries (the United States, Germany, France, etc.). Of course, the customer composition of various countries may be different. The same. For example, the education and automotive industries have a large share in Japan, China, the United States and India; but in India, 3D printing solutions are more related to government and defense, and China is more focused on electronics and consumer products. ”

How to formulate commercialization strategies and maximize customer satisfaction is the focus of this stage of development. However, this is not only something that 3D printing companies need to consider, but also the capabilities that China's manufacturing industry needs to have in the process of digital transformation.

"To further transform to automation and Internet, and to improve manufacturing efficiency, a variety of technologies are needed to advance together. Therefore, our short-term strategic goal is to cooperate with other parties that contribute to this trend. relationships, including companies specializing in areas such as AI, big data, robotics and supply chain management,” added Michael Agam.

Michael Agam said that in order to make 3D printing solutions available for mass production and commercial use, 3D printing companies still need to wait for other elements to join in before they can be fully applied in factories. In addition to considering technology and manufacturing costs, the CNC equipment interconnection communication protocol (MTConnect), which plays a role in adapting the current mainstream manufacturing execution system (MES) and enterprise resource planning (ERP) processes, must also be in place before digital transformation can be gradually achieved. Unfold, instead of expecting drastic changes overnight.

"Today's customers find solutions in the market that are mostly similar, but not the best, and we've spent a lot of time over the past few years understanding and developing products to satisfy such customers. Success can sometimes be just one step away,” says Michael Agam.