From Selling Machines to Service Bureaus.
3D Systems announced Friday that they are opening a service bureau business that will produce 3D printed parts for customers. This is a major strategic change that puts them in direct competition with some of their customers. ZCorp works with Quickparts to provide a similar service and Stratasys provides parts via their RedEye production service. Only Objet has kept complete focus on selling machines to customers.
The economics of 3D printer ownership require massive throughput to be cost effective. The service bureau’s and engineering firms that are the major buyers of 3D printers are saturated or are conserving cash. This leads to the establishment of service businesses and unfortunately will have a dampening effect on innovation in the core technology.
Cash for Clunkers – 3D Printer Style
Objet and ZCorp are both running programs that allow you to trade in old 3D Printers for significant discounts on new machines. ZCorp is offering up to $13,500 while Objet is offering up to $80,000. I wonder if anyone will try to parlay a MakerBot into a ZCorp 650? The language does leave the door open:
Organizations that trade in any 3D printer, whether a Z Corporation ZPrinter® or competitor’s brand, receive $10,000 toward the purchase of a top-of-the-line ZPrinter 650 or $5,000 toward the ZPrinter 450.
Both programs end Dec 31st so act fast.
Saturated Market + Bad Economy = R&D Slowdown
3D Systems is a publicly traded company (Public, NASDAQ:TDSC) and announced that they will have to slow R&D in the face of slowing sales. This likely means a delay in the completion of the Desktop Factory project and a slowdown in general R&D. For 3D printing enthusiasts this is an unfortunate development. 3D printers are a nearly magical technology, but there is a lot of development still to be done before they can go from job shops to home work benches.
