Digital additive manufacturing revenues will increase 16% annually until 2018, says James Rickman, iHuman Evolution. Rapid 3D additive production is a very cost effective process that reduces traditional manufacturing costs by 65% +. Companies like EXONE add real value in a tough economy with the rising cost of materials, labor, higher taxes, individual health care and carbon footprint expenses. Today, businesses are finding innovative ways to automate manufacturing and product development. Revenues for 3D additive manufacturing should hit $7.2 billion within six years comments, James Rickman. Companies like Boeing, Ford and Caterpillar save millions of dollars by using 3D part manufacturers and rapid prototyping firms like EXONE Company (offices worldwide).
“Global economics is increasing the standard of living in places like China where manufacturer wages are steadily rising. From 2008 to 2013, China’s hourly manufacturing labor costs rose by 85%, expected to rise at a similar rate for the next five years. This compares with the estimated increase of 9% for the United States over the same time period. As the cost of raw materials continues to jump, it will further exacerbate this trend causing some manufacturing jobs to return to the U.S. However, the jobs are information and knowledge intensive even for the factory worker. Education is the key to successful U.S. economic growth.” says Mr. Rickman.
EXONE is a relatively small company based in Pennsylvania. Its upcoming IPO stock offering (NASDAQ: XONE) is a great opportunity to invest in a growing business that automates the manufacturing of process. The company is led by a solid management team. Technology seeding is occurring, where 3D additive manufacturing firms like EXONE Company have been expanding beyond defense contracts over the past five years to offer highly effective new ways to meet the consumer marketplace desire for custom products and services. The integrity of rapid additive parts manufacturing is literally battle tested and proven to be durable on equipment used by the USAF, NAVY and other govt. agencies over decades. The digital economy is all about the customer experience meeting their needs in a fast, targeted and low cost fashion says, Mr. Rickman. Read XONE – SEC Filing
For example, a local Nashville Tennessee bicycle manufacturer is offering custom fitted seats for consumers looking for a more comfortable ride. Another company is offering building construction contractors better tools and materials to fit their home remodeling projects. The 3D digital printing and additive part manufacturing process is a proven technology. The 3D printer additive process uses metal and/or sand micro fillers that reducing labor, time and materials costs. The tiny filler materials known as Cenospheres are compressed into a solid form able to withstand extreme usage.
WATCH VIDEO of Digital Parts Manufacturing
Once again, the digital 3D additive printing technology has the potential to make the United States a top manufacturing powerhouse. Mobile apps are also being used on SMART phones and tablets to design 3D products on the fly including through social network groups simultaneously working on the same projects. The results of the team’s digital collaboration is then output from any mobile device as .OBJ or .STL files and automatically manufactured within a couple hours on a 3D printer. It’s truly a streamlined approach to manufacturing that uses open architecture software to produce real world products.
Investment bank, FBR Capital is the sole book runner handling the XONE IPO, along with BB&T Bank. The IPO terms for XONE are set to 5 million shares being offered at $14 - $16 per share. The full market IPO valuation of EXONE is estimated $185 million. Other companies in the 3D printer industry such as 3D Systems are over-valued with a less focused product line. But there is relatively little target market overlap between EXONE and 3D Systems.
If the U.S. further implements tariffs on imports it will create more manufacturing jobs for Americans. Highly efficient additive manufacturing such as offered by EXONE Company is a very interesting stock to own with lucrative niche market opportunities. Similar companies are using what appears to be a shot gun approach by spitting out a huge range of low end consumer products that have shrinking profit margins similar to the PC industry. Take a look at Hewlett Packard’s struggles.
EXONE Company is smart to avoid the low end price model instead offering higher quality commercial grade 3D additive manufacturing printers, says Mr. Rickman. This approach separates an equity investment like XONE from the competition enabling it sustain higher profit margins in the future. XONE is a stock to BUY. It offers lots of return on investment upside in a rapidly growing digital economy. There’s always risk investing in a small company but I say go for it here.
Other 3D printer manufacturers include:
3D Systems Corporation
Bits from Bytes
MakerBot Industries LLC