MakerBot is outsourcing manufacturing to China

China's 3D printing segment, which has already had a huge impact in lowering costs and prices, is shaping the market yet again with a new announcement from MakerBot. The company said it will soon outsource its manufacturing to Jabil, a Florida-based company with facilities in China. MakerBot has hitherto made its printers in Brooklyn, New York.

MakerBot is owned by Stratasys, one of the largest 3D printing companies in the world. Since China suppliers have started chipping away at profits, producing many printers under $500 to target less cash-flush markets such as education, Stratasys has been looking for ways to cut costs. Those efforts have had a big impact on the company's most well-known brand. MakerBot has already undergone multiple layoffs, including chopping off 20 percent of its staff twice in 2015.

MakerBot has also been slashing prices on older printers. The Replicator 2 has been discounted to $800 on Amazon. The least expensive product on MakerBot's website is still the Replicator Mini for $1,375. The Replicator 2X is being sold on the site for $2,500. Unfortunately for MakerBot, 3D printers are a niche market where it does not necessarily pay to be a premium brand. At $800, the Replicator 2 is more in line with what is coming out China these days. Many desktop 3D printers from China suppliers sell for about $500 to $800.

See a comparison table of selected 3D printer suppliers on GlobalSources.com