Industrial AM Machine Costs Under Scrutiny

The true cost of industrial additive manufacturing (AM) technology is a complex issue, encompassing not only the initial purchase price of the hardware but also ancillary equipment and the ongoing costs of utilization. These costs can be broadly categorized as 'hurdle costs' for adoption and 'business case costs' for specific applications.

Disagreements often arise between machine manufacturers and their clients regarding pricing. The lack of transparency surrounding these figures makes it challenging for trade media and analysts to definitively assess the situation. While AM enables the creation of previously impossible parts, end-users report average machine utilization rates as low as 60%, raising questions about the justification for multi-million dollar price tags.

Furthermore, the profitability of many AM machine manufacturers presents another hurdle. With a significant number of these companies operating at a loss, the expectation of them lowering system costs becomes difficult to sustain. This situation is further complicated by the proprietary nature of information regarding research and development, bill of materials, materials development, sales, distribution, portfolio proliferation, and profit margins, all of which influence the final price of an AM machine.

In an effort to shed light on these issues, TCT Magazine initiated a report aiming to provide a detailed cost breakdown. While many industry leaders were hesitant to share sensitive financial information, some provided valuable insights. Former OEM CEO Avi Reichental offered a rough cost breakdown, while Filomeno Martina explained his reasons for not doing so in detail. Representatives from Stratasys and Nikon SLM Solutions shared broader perspectives, and ADDMAN CEO Joe Calmese contributed insights from the end-user viewpoint. The report also touches upon related topics such as the efficiency of powder handling in metal AM and the use of 3D scanning for quality control in manufacturing.