General Electric Just Bet Big on 3D Printing
On Tuesday, General Electric (NYSE: GE) announced that it intends to acquire two European metal 3D printer companies, Arcam and SLM Solutions, for a combined $1.4 billion. Like many of GE’s other growth initiatives, the industrial giant believes 3D printing can benefit it in two major ways. The first is by selling a diversified set of 3D printers, materials, and services to customers, and the second is from the cost savings that 3D printing will have on its existing manufacturing businesses.
By 2020, GE expects to generate over $1 billion in 3D printing revenue, and over the next 10 years, the company believes it can reduce its manufacturing costs between $3 billion and $5 billion. For perspective, Arcam generated $68 million in revenue last year, while SLM generated $74 million. Both of these figures pale in comparison to the roughly $650 million 3D Systems and $700 million Stratasys are expected to generate in sales this year.
Prior to these acquisitions, GE already invested about $1.5 billion building out its 3D printing and advanced manufacturing footprint and expertise, enabling it to become a leading 3D printing practitioner. By adding selecting laser sintering and electron beam melting 3D printing technologies to its portfolio, GE now has the necessary components to become a leading 3D printing player in metals.
Initially published on 11 Sept, 2016 on Madison.com, see source.
Passionate about entrepreneurship & helping entrepreneurs, and inspired by the ever-changing digital space, and our 3d printing-enabled future, Itai Levitan is an entrepreneur, marketer, investor, and adviser. Itai has been raised in Israel and the United States, educated in Australia and is now living in one of the coolest cities in Europe, Berlin. Itai Levitan is the Co-founder of Inside3DP.com