Youngstown Business Incubator Team NEO MAGNET America … · 2017-05-17 · Youngstown Business...

AssetMap

AdditiveManufacturingOpportunities

NortheastOhio

July2016

Preparedfor:

FundforourEconomicFuture

Preparedby:

YoungstownBusinessIncubator

TeamNEO

MAGNET

AmericaMakes

Asset Map of Additive Manufacturing Opportunities in Northeast Ohio 2

TableofContentsI. Introduction

A. ScopeofWorkB. AdvisoryCouncilC. Process

II. ValueofWork:IdentifyingNortheastOhioAMValueChain

A. WhyNortheastOhio?

III. TheAdditiveManufacturingLandscape&MarketOpportunitiesA. GlobalAMLandscapeandMarketOpportunitiesB. OhioandNortheastOhioAMLandscapeandMarketOpportunities

1. Tooling2. Materials3. Research,Development,EngineeringandDesign4. JobsGrowth

IV. CompetitiveAnalysisA. BenchmarkingNortheastOhioAgainstOtherRegions

V. AssetInventoryinNortheastOhioA. NortheastOhio'sAMSupplyChainB. InvestmentsinNortheastOhio’sAMInfrastructure


VI. Voice-of-the-CustomerInterviewsA. PartsManufacturersB. ServiceBureaus 1. TheTechnologyHouse 2. rp+mC. OEMs 1. Biomedical 2. Aerospace 3. AdvancedManufacturingD. MaterialsE. DesignHousesF. WorkforceTrainingandEducation 1.IndustryTrainingandHiringPractices 2.CurrentAMEducationalCurriculaG. LimitationstoEntrepreneurshipandCommercialization

VII. BusinessUseCases

VIII. OutcomesandRecommendationsA. VisionB. Goals

1. Formofaregionalcluster2. DriveuseofAMfortooling,fixturesandmanufacturing3. GrowadoptionofAMthrougheducationandworkforcetraining4. Buildoutsupplychaininkeyverticalmarkets a. materials b. biomedical c. aerospaceanddefense d. automotive

5. Establishframeworkforentrepreneurshipandcommercialization

IX. Bibliography

X. IndustryTermsandAcronyms

XI. Appendix:ListofAMAssetsintheNortheastOhioRegion


INTRODUCTION

I. INTRODUCTION

A. ScopeofWork

Thepurposeofthisstudy,theAssetMapofAdditiveManufacturingOpportunitiesinNortheastOhio(AssetMap)istocreateaclearvisionfortheintegrationoftheAdditiveManufacturing(AM)supplychaininnortheastOhio.AprimarycomponentofthisvisionistheabilitytocapitalizeonthetechnologyadvancementsbeinggeneratedbyAmericaMakes,thenationalacceleratorforAMand3Dprinting(3DP).

Tothisend,aprojectteamwasassembledinNovember2015.Theteam,whichiscomprisedofmembersoftheYoungstownBusinessIncubator(YBI),TeamNEO,MAGNET,andAmericaMakes,begantheprocessofroadmappingtheregionalcommercializationlandscapetoidentifyAMopportunities.

Objectivesinclude:• maximizingongoingAMresearchanddevelopment• generatingnewindustryapplicationsofAM• stimulatingregionalentrepreneurialactivity• drivingbusinessandeconomicgrowththroughoutthenortheastOhioAMsupply

chainTheroadmappingprocessemployedistheInSeven©model.Thismodelisdesignedtoidentifykeyregionalstrengthsasthebasisoflong-termcluster-developmentopportunitiessurroundingthoseassets.


FigureA:TeamNEOInSeven®RoadMappingProcess

B. AdvisoryCouncil

AnAdvisoryCouncilconsistingofstakeholdersthroughouttheregionwasestablishedtoguideallAssetMapactivities.AdvisoryCouncilmembersincluderepresentationfromprominentend-usercompanies,keysupplychainparticipantsandleadingacademicinstitutions.TheroleoftheAdvisoryCouncilhasbeentoprovide:aplanstructure;marketandtechnicalguidance;connectionstomarketparticipants;consistentengagementduringdevelopmentoftheworkproduct;andreviewofallplanoutcomesandrecommendations.


FigureB:AdvisoryCouncil,AssetMapofAMOpportunities

CouncilMembers Company ValueChain

TracyAlbers,President

rp+m Production/Design

JohnBaliotti,DirectorofMarketingandBusinessDevelopment

FormerlyofTheExOneCompany

EquipmentManufacturer

JohnBarnes,VicePresidentofAdvancedManufacturingandStrategy

AlcoaTitanium&EngineeredProducts

Materials

BarbEwing,ChiefOperatingOfficer

YoungstownBusinessIncubator

R&D

TimFahey,VicePresidentofIndustryandInnovation

TeamNEO R&D

RobGorham,DirectorofOperations

NationalCenterforDefenseManufacturingandMachining

R&D

TracyGreen,VicePresident,StrategicandInstitutionalDevelopment

LorainCountyCommunityCollege

Workforce/R&D

MarkHorner,VPBusinessDevelopment

TheTechnologyHouse

Production

AnthonyHughes,FounderandPresident

TheLantermanGroup Design/Commercialization/Workforce


HowardKuhn,SeniorTechnologist

FormerlyoftheExOneCompany

EquipmentManufacturer

AaronLaLonde,PrincipalMaterialsEngineer

Swagelok Design/Production/End-User

BrandonLamoncha,SalesManager,SolutionProvider

HumtownProducts Production

RichLonardo,PrincipalConsultant

DefenseandEnergySolutions,LLC.

R&D

GeorgetteNelson,Leader,AdditiveProgramsatGeneralElectric

GeneralElectric End-User/Production

DavePierson,SeniorDesignEngineer

MAGNET R&D/Design/Engineering/Production

JulieMichaelSmith,ExecutiveVicePresident,ExecutiveDirector,AdvancedMethodsinInnovation

AST2(AppliedSystemsandTechnologyTransfer)

Workforce/Design/Production/R&D

EvanSpirk,ProductDesignManager;JohnSpirk,Co-Founder,Co-President

NottinghamSpirk Design

DarrellWallace,AssistantProfessor/Owner

YoungstownStateUniversity/Assimilogic

R&D


C.Process

ThefirststageoftheprojectincludedanextensivereviewofpreviouslycompletedroadmapsandAMmarketanalyses,inordertoaccuratelyassesstheexistingAMlandscape,aswellasexistingandfuturemarketopportunities.ThedefinedmarketopportunitieswerethenusedtodevelopavaluechainmodelwhichwaspopulatedbymarketparticipantsexistinginnortheastOhio.Fromthatvaluechain,keysegmentswereselected,andmorethanfiftyvoice-of-the-customer(VOC)interviewswereconductedamongresourcesthatrepresentthecoreassetsoftheregion.

VOCinterviewsrelyondirectinteractionswithend-usersandkeysupplychainassets;forthisreason,theVOCmethodwasdeemedmosteffectivefortheidentificationofkeyusecasesandthedeterminationofnearandlong-termAMopportunities.

Interviewswerealsoconductedwithleadingindustryresourcesfromsurroundingregions.TheinformationgatheredhasbeenusefulinassessingnortheastOhio'scompetitivepositioning.Basedontheseinterviews,asetofrecommendationsforsupportofAMgrowthinnortheastOhiowasdeveloped.

Theremainderofthisreporthasbeenorganizedintosevensections:

• ValueoftheWork

• TheAdditiveManufacturingLandscapeandMarketOpportunity

• CompetitiveAnalysis

• AssetInventory

• Voice-of-the-CustomerInterviews

• BusinessUseCases

• OutcomesandRecommendations


VALUEOFWORKII. VALUEOFWORK

TheopportunityAMpresentswithinnortheastOhioincludesbuildingonthealreadyrobustmanufacturingbasetoaidtheregion’sabilitytoremaincompetitive.Thereisalsoadirectopportunityforcompaniesandend-userswhodesignandproduceusingAMtechnologiestopositivelyimpacttheirbottomlinethroughproductionefficiencies,reductionintimetomarket,andmarketdevelopment.

Theultimateoutcomeoftheroadmappingworkistoidentifygrowthandcommercializationopportunitiestohelptheregionretainandgrowjobsandadvancetheregion’scompetitiveness.

IthasbeendeterminedthatbydefiningtheregionalAMvaluechainandidentifyingeconomicusecasesofmerit,wecanfacilitatesuccessfuladoptionofthetechnologyandmarketentryintovaluechaingapsbyin-regioncompaniesandoriginalequipmentmanufacturers(OEMs).ArobustregionalAMvaluechainandecosystemshouldenablein-regioncompaniestobettercontendwithglobalcompetitionandcapitalizeonthetechnology,bringingbenefitsdirectlytothematerialssuppliers,fabricatedmetalproductsmanufacturers,andplasticproductsmanufacturersthatareabundantinnortheastOhio.

Additionally,thisworkwouldbenefitOEMsandend-userswhosefinishedproductswouldincorporateAMproducedparts.EconomicdevelopmentorganizationsinnortheastOhio,suchasMAGNETandYBI,couldbenefitthroughincreasedawarenessanddemandforthetechnology,generatinggreaterwealthcreationwithintheirtargetregions.Thearea’sinstitutionsofhighereducationwithAMcurriculumcouldbenefitsignificantlyastheyarebetterabletolinktheirresearchtoindustry.Entrepreneurswillespeciallybenefitastheygainaccesstoservices,valuechainpartners,andknow-howtohelpthemlaunchtheirbusinesses.

A.WhyNortheastOhio?

NortheastOhiohasanadvantagedpositionforcapitalizingonthetransformationaleffectAMwillhaveonmanufacturingeconomies.Theregion’sindustriallegacyincludes273,000manufacturingworkers–62percentabovethenationalaverage–afoundationwhichholdsvastpotentialforacceleratingregionalandnationalgrowthwithintheAMcacheoftechnologies.Theexistingfabricofmanufacturers,end-usemarkets,regionaleconomicdevelopmentandentrepreneurialsupportorganizations,professionalassociations,andhighereducationmakesnortheastOhioahotbedofcurrentandpotentialAMcapabilities.

• ThepresenceofAmericaMakesinnortheastOhioprovidesengineeringresources,aprototypingcenter,researchanddevelopmentopportunities,acadreofAMexperts,accesstothenationalAMcommunityandasignificantbodyofIP.ThepresenceoftheflagshipprogramfortheNationalNetworkforManufacturingInnovationintheregionisauniqueassetthatcanandshouldbe


leveragedbythestateofOhioandregionaleconomicdevelopmentagenciesintheireffortstoattractandretaincompaniestonortheastOhio.

• CompaniesprimedtofeedandutilizetheAMsupplychainincluding1,900-plusmetalfabricationestablishmentsandmorethan800plasticprocessors,togetheremployingmorethan100,000people.

• End-usemarkets,whichareapartofnortheastOhio’sdriverindustrycache,includetheaerospace,medical/dental,andautomotiveindustries.Theseindustrieswereresponsiblefor62percentofAMsystemsalesworldwidein2014.Aerospace,medical/dental,andautomotiveaccountfor478establishmentsinnortheastOhioandover38,000jobsintheregion.

• TheconnectingfabricofregionalorganizationsdedicatedtocompanyandentrepreneurialgrowthincludesYBI’sexpertiseasanincubatorandintechnology-basedeconomicdevelopment;TeamNEO’sexpertiseinprivate/publiccollaborationandregionalinnovationclusterdevelopment;MAGNETasthepre-eminentcenterformanufacturinggrowthinnortheastOhio;BioEnterpriseinbiotechbusinessformation,recruitment,andacceleration;JumpStart’ssupportofdiverseentrepreneurs,highgrowthcompaniesandtheecosystemsthatsupportthem;andcountyeconomicdevelopmentorganizations,suchastheStarkDevelopmentBoardandTeamLorainCounty.

• PrivatesectororganizationsandnationalassociationslocatedinnortheastOhiowithexpressedinterestinAMincludeASMInternational,theworld'slargestassociationofmetals-centricmaterials,engineers,andscientists;SME(formerlyknownastheSocietyforManufacturingEngineers),dedicatedtoadvancingandeducatingthemanufacturingindustry;AllianceforWorkingTogether(AWT),aconsortiumof75+manufacturingcompaniesworkingonthesustainabilityofmanufacturinginthecommunity;andtheLantermanGroup,aconsultingfirmfocusedonintegratingadditivemanufacturingpracticesintoexistingbusinesses.

• Significantworkforce,intellectualproperty(IP)andR&DcapabilitiesfromhighereducationincludingLorainCountyCommunityCollege’s(LCCC)SmartCenter;CuyahogaCommunityCollege’sDigitalDesignandManufacturingTechnologycurriculum;CaseWesternReserveUniversity’s(CWRU)AdditiveManufacturingStudiointhink[box];andYoungstownStateUniversity’s(YSU)CenterforInnovationInAdvancedManufacturing(CIAM).


TheAdditiveManufacturingLandscape

AndMarketOpportunitiesIII. THEAMLANDSCAPEANDMARKETOPPORTUNITIES

A. GlobalAMLandscapeandMarketOpportunities

Additivemanufacturingisforecastedtoremainonasizeableglobalgrowthtrajectoryoverthenextseveralyears.IndustryanalystsWohlersAssociatesestimatedin2015aglobalmarketofmorethan$5.2billionfordirectproductsandservices,withanadditional$1.8inindirectrevenuefromin-houseproduction,foratotalmarketof$7billion.Thisrepresentsa25percentcompoundannualgrowthrate(CAGR),withmostanalystspredictingsimilargrowththrough2020.Whiletherangeofmarketrevenueprojectionsvariesfrom$7billionto$21billionin2020,theconsensusamongindustryexpertsisthatgrowthwillbesignificantandsteady.

WohlersAssociatesfurthersegmentsthecurrentworldwidemarketforproductsandservicestoinclude:

§ Revenuefromsystemsandmaterialsestimatedat$2.4billionin2015.Ofthis,$1.5billionissalesofAMprintingmachinesandsystems,and$770millionduetosalesofAMmaterials.

§ Revenuefromservicesestimatedat$2.8billionin2015,ofwhich$1.7billionisattributedtoservicebureaus.

§ Revenueof$2billioninOEMindirectrevenuefromin-houseproduction.IndirectOEMrevenueiscommonintoolingandfixtureapplicationswherecompaniesuse3DP-dies,moldsandtoolstosatisfytheirownmanufacturingneeds.

Globally,Asia-Pacific,theU.S.,andWesternEuropeareexpectedtoincreasetheircombinedshareofglobalspendingon3Dprintingfrom59.2percentin2014to70percentby2019,accordingtoInternationalDataCorporation(IDC).Chinaisprojectedtobecometheleadingmarketfor3DprintinghardwareandservicesbyIDC.EstimatesalsovarywhenmeasuringtheNorthAmericaandU.S.market,rangingfroman$814million2014NorthAmericanmarketestimatedbyBCCResearch,toa$1.5billionU.S.marketestimatedbyIBISWorldin2014,basedonregionalsalesofcommercialandindustrialprinters.With40percentoftheinstalledmachinebaseinNorthAmerica,actual2015revenuecouldrangeas


highas$1.9billionfromservicesandindirectrevenue,whileNorthAmericanshareinmachinemanufactureandmaterialswasmuchlower.

Applications

1. DirectPartsProduction:Thoughholdingthelargestpromiseformarketdisruptionandeconomicimpact,directpartsproduction(end-userparts)remainsthesmallestsegmentoftheend-useprintermarket.Analysts,includingMcKinseyandPiperJaffrey,estimatethatdirectpartproductionaccountsforlessthan30percentofadditivemanufacturingproduction.

TheleapfromusingAMtechnologymainlyforproductdesignandprototypingtoactualvolumeproductionhasbeeneagerlyanticipated.However,catalystsformassproductionremainslowertoevolvethenmanyinthemarkethadanticipated,creatinganenvironmentwhereitisstilltooearlyinthenear-termtocapitalizeonmassproduction.Challengeslieinoperationalizing3Dprintingthroughoutmultipleareasoftheorganizationandsustainingthetechnologyinternallyforanumberofreasons,includingcost,time,designmindset,andleadershipvision.

However,therearesomesegmentsofthemarketthathavebecomecompetitiveinreplacingconventionalprocesses.Industriesattheforefrontofdirectpartproductionareaerospaceandbiomedical.Forexample,GEis3Dprinting19fuelnozzlesforeachLEAPaircraftengine,and90percentoftheplasticshellsforin-the-earhearingaidsarecreatedviaadditivemanufacturing.

2. Prototyping:AMisstillmostcommonlyusedforprototyping,whichincludes,forthepurposesofthisstudy,prototypesforfitandassembly,presentationmodelsandvisualaids.Estimatesrangefrom48percentto70percentof3Dprintingisusedforprototyping,whichisacriticalstepinthenewproductdevelopmentprocess,enablingthemorerapidcreationandoptimizationofdesignsandthefurtherintegrationofthedesignandmanufacturingprocesses.

3. Tooling:Toolingis,byitsnature,alow-volume/highvariabilityproductionprocess.Itisalsothesinglelargestcostcomponentofmostmassproducedproducts.Someadditivemanufacturingprocesseshavebeendemonstratedtobeeffectiveatproducingviabletoolingforapplicationsincludingmolding,casting,andforming.Currentapplicationsaregenerallylimitedtoexpendablemolds(asingreensandcasting)orlow-volumeproductiontoolinginmoldingandlight-gageformingapplications.Thishasopeneduptheopportunityformanufacturerstoproducecomponentscosteffectivelyatmuchlowerproductionvolumesthanpreviouslypossible.Thishassignificantimplicationsforincreasinginnovationthroughlowerfixedcapitalcostsandshorterdesigniterationcycles.


AMtoolingisalsomorereadilyintegratedintotheexistingmanufacturingecosystem.AMtoolingyieldscomponentsthataremanufacturedbytraditionalprocessesandthataremadefromtraditionalmaterials.Thus,theyareabletobeincorporatedintothetraditionalsupplychainwithoutadditionalbarriers.

AttherecentSMERAPID2016conference,anannualconferencededicatedtotheaccelerationofAM,marketresearchersfromtheUniversityofTennessee-KnoxvilleOakRidgeNationalLibrary(UTK-ORNL)estimatedthatthetotalglobaladdressablemarketfortoolingwouldgrowto$68.7billionby2020.Unfortunately,thissizeableopportunityisoffsetbywhatresearcherssaywillbeadirectcorrelationbetweentheoffshoringoftoolingandthelossofdomesticmanufacturingjobs.From1997to2010,thevolumeofU.S.toolingimportsgrewfrom$1.3billionto$4.8billion,withacorrespondingdeclineindomesticmanufacturingjobs.Researchersprojectthatanidealtargetforreshoringaportionofthisimmensemarketisthelowquantity,highcustomization,largeareatooling.TheyestimatethattheaccessiblemarketforAMtoolingintheU.S.willbe$8.8billionby2020.Thisisasizablegrowthopportunity,asthe2015marketestimateforAMtoolinginNorthAmericawouldberoughly$800million,a40percentshareofindirectrevenueestimates.

Research&Development

Globally,severalregionsarefocusedontheexpansionof3DPtechnologyacrossindustries.Theseinternationaleffortsaresuretoplayamajorroleininternationalcommercialcompetitionandeconomicgrowth.Nationalsecurityisanothercriticalfocus,sincetheU.S.militaryisusing3DPtechnologytoaddressabroadrangeofneeds.Afewapplicationsinclude3Dprintedweapons,uniformswithbiometricsensorsandtheabilitytoproducespareequipmentpartsinremotelocations.

AccordingtoWohlers’sanalysis,NorthAmericaandEuropeleadtheadoptionof3DP,holding68percentofthecurrentmarketshare.EmergingmarketsincludeSouthKorea,China,Japan,andSingapore,allofwhichhaveanextensiveindustrialbaseaswellasstronggovernmentsupportinbothfundingandpolicy.

Severalinterestingandrelevantlessonscanbegleanedfromtheinvestmentsbeingmadebythosenations.Forinstance,SouthKoreaisspendingapproximately20percentofitsAMinvestmentintrainingitsworkforce.Theirstrategicgoalsareveryspecific:deploy5,000printersinschoolsandtrain13,000teachers.AnotherspecificSouthKoreangoalistocreate130“3DPromotionCenters."SingaporeandChina,ontheotherhand,havetargetedaninvestmentof$400USDperperson(over5years)and$45USDperpersonrespectivelyinanefforttobecomeworldleadersinAMproduction.

Onanationallevel,theU.S.government,academiaandtheprivatesectorallplayaroleinthedevelopmentofAMtechnologies.AccordingtotheScienceandTechnologyPolicyInstitute,the


UnitedStatesbegantofundAMresearchanddevelopmentin1986.Sincethattime,morethan$200millionhasbeenpouredintoAMresearchbytheNationalScienceFoundation(NSF).OtherfederalagencieshavealsobeeninvolvedinAMresearchanddevelopment,including,butnotlimitedto,theNationalAeronauticsandSpaceAdministration(NASA),theNationalInstituteofScienceandTechnology(NIST),theDepartmentofDefense(DOD),andtheDepartmentofEnergy(DOE).

FigureCbelowdemonstratesthecurrentstatusofresearchinvestmentsintoAMmadebyallnations.

FigureC.

B.OhioandNortheastOhioAMLandscapeandMarketOpportunities

TheNortheastOhioAMLandscape TheAssetMapProjectTeamconsideredthemagnitudeofAMopportunitiesinnortheastOhiofrommultipleperspectivesincludingtooling,materials,andresearchanddevelopment.Ineachcase,theprojectedgrowthopportunitieswerecomparablyoptimistic.

1.Tooling:Thetoolingindustryhasbeenidentifiedasthegreatestopportunityfornear-termAMmarketgrowthinOhioandinparticular,northeastOhio;3DPequipmentOEMsprojectthesame.Aspreviouslynoted,northeastOhiohasmorethan400plasticsprocessingand1,900metalsfabricatingcompanies,withacombinedtotalworkforceof~80,000individuals.Accordingly,theregionaltoolingindustryhasthegreatestpotential


forearlyAMadoptionandthegreatestlikelihoodofsparkingsignificanteconomicopportunity.

FigureDbelowillustratesthemagnitudeofimpactthatOhio'sAMtoolingmarketcouldhaveonthestate'smanufacturingeconomy.Asnotedabove,arecentstudysizedtheUSAMtoolingopportunityat$8.8billionin2020.Ohiois2ndintheUSintool,die&moldoutputwith~12percentshare.Thus,weestimateamarketpotentialof>$1billionforAMtoolingproductioninOhioby2020. FigureD:RelativeMagnitudeofAMOpportunitiesforTooling

• $730B-TotalU.S.Marketforplasticsmanufacturing,metalfabricationandpolymer

materialsindustries• $63B-NEOTotalAddressable

Marketforplasticsmanufacturing,metalfabricationandpolymer

• $17B-NEOAvailableMarket:SpecificsegmentsofthenortheastOhioplasticsmanufacturing,metalfabricationandpolymermaterialsindustriesidentifiedbytheprojectteamashavingagoodopportunityforeconomicimpact.

• ObtainableMarket–$1B-Portionoftheavailablemarketthatcan

realisticallybepenetratedbyadditivemanufacturingfortoolingproductioninOhio

by2020.

Sources:4DatafromFirstResearch5,6DatafromMergentIntellect

2. Materials:MaterialsspendingforAMin2015was$765million,atwentypercentincreaseover2014,accordingtoWohlers.TheprimarymaterialsegmentsinAMaremetalsandplastics,alongwithavarietyofcompositematerials,ceramics,sands,andhybrids.

In2015,theaerospaceandmedicaldeviceindustriesweretheprimarydriversinan80percentgrowthinmetalusage,withthatrevenuereachingnearly$88

NEOTotalAddressableMarketforplasticsmanufacturing,metalfabricationandpolymermaterialsindustries

NEOAvailableMarket:SpecificsegmentsoftheNEOplastics manufacturing,metalfabricationandpolymermaterialsindustries identifiedbytheProjectTeamashavingagoodopportunityfor economicimpact.

PortionoftheAvailableMarketthatcanrealisticallybe penetratedbyadditivemanufacturing. -VOCworkandanalysisofassetdatabasewillhelp establisharealisticestimate -Shorttermtoolingopportunity:Wohlershasreportedthat4.7%ofitssurveyrespondents(serviceprovidersandindustrialequipmentmanufacturers)useAMtechnologyfortoolingcomponents


million.Byallindications,thesaleofmetalsforAMpurposeswillcontinuetogrowatahealthyratein2016.

Polymermaterialsaccountedformorethan$550million(or71percent)ofallmaterialsdollarsspentin2015.Thisrepresentsanincreaseof20percentover2014.TherangeofpolymersavailableforAMvarybystrength,color,transparency,rigidity,temperature,moistureresistance,andanumberofothercharacteristics,butstillarequitelimitedcomparedtothoseavailablefornon-AMprocesses.

In2015,thefollowingpolymertypesweremostfrequentlyusedintheAMprocess:

• Photopolymersdominatedusagewithnearly$350millioninsales

• Lasersinteredpolymersaccountedfor$191millioninmaterialspending,whichreflectsaone-yearincreaseof25percent

• Polymerfilamentspendingaccountedfor$116million

InnortheastOhio,materialsrepresentalegacystrengthandakeyopportunityforgrowthaspartofthefutureglobalvaluechainforAM.ThenortheastOhioregionhasmorethanfourtimestheconcentrationofmaterialsindustryjobswhencomparedtotherestoftheU.S.Morethan50percentofallmaterialsindustryjobsintheStateofOhioarelocatedinnortheastOhio,and35percentofthosejobsarespecifictothemanufacturingofplastics.Primarymaterialsproducersemployover40,000workersintheregion.

Todate,thatdominanceinmaterials,especiallypolymers,fornortheastOhiohasnottranslatedtoacorrespondingshareinAMmaterials.AkeyreasonforthishasbeentheclosedmaterialsmodelemployedbythelargemachineOEMs,requiringuseoftheirmaterials.ThispositionisprotectedbypatentportfoliosformanyoftheAMpolymersystems,limitingentrybytraditionalmaterialsuppliers.Thesebarriershavestartedtoerodeaspatentsexpire,butstilllimitinnovationintheAMmaterialssector.Creatingopportunitiesfornewproductstoenterthemarketwillrequireasignificantdisruptionintheexistingsupplychain,aswelltheexpirationofexistingpatents.

Industryexpertsagreethatnew,lowercostmaterialsandaccesstoabroaderpaletteofmaterialgradeswillspurmorerapidadoptionofnewAMtechnology.TwostrikingadvancesinAMmachinetechnologywereintroducedin2015,andtogethertheyprovideaglimpseintotheAMmaterialstransformationthatliesahead:theHewlettPackardAMprinterandtheCarbonprinterbothusepolymermaterialsandbothofferopensourceopportunities.Bothsystemspromiseaten-


foldincreaseinprintingspeed,whichwillsignificantlyalterthebreakevenvolumeforAMplasticspartproduction.TheseadvancescouldopenupwholenewmarketsectorsforAM.Forexample,CarbonisactivelyworkingintheautomotivesectorwithDelphiinOhioandinconsumergoodswithNike.

HPstatesthatitisopentoallmaterialsuppliers.SincetheselectionofpolymerpowdersusedbytheHPAMprinterissomewhatlimited,northeastOhiopolymercompoundproducerscouldbeabletocapitalizeongrowthopportunities.(CurrentHPmaterialssuppliersincludeEvonik,BASF,ArkemaandLehman&Voss.)

Carbon’smachineisdesignedaroundproprietarythermosetpolyurethanechemistry,butthecompanysaysthatitisseekingpolymerproductionpartnersforthesematerialsaswellasforotherthermosets.

ThematerialsopportunitiescreatedbyHPandCarbonwillhelpdisrupttheclosedsourcingmodelofAMoriginalequipmentmanufacturers,3DSystemsandStratasys,andtherebyaccelerateentryopportunitiesforOhiopolymermaterialscompanies.

TargetsforinnovationinAMmaterials:

• Polymerfilaments:NortheastOhiohasthekeyproductionfacilityfor3DSystemsbusinessinpolymerfilamentproduction,aswellasnotablestart-upsinthisproductgroup.PolymermanufacturerLubrizolhasdevelopednovelTPU(thermoplasticpolyurethane)filamentproductsaswell.Aspatentsexpireinthissegment,collaborationofOhiocompounderswithfilamentproducerscouldpenetrate.

• Compositestructures:ImpossibleObjectsinIllinoishasdevelopeda3DPsystemthatprintscompositestructures,usingmatsofcarbonorglassimpregnatedwithpolymer.Ohiohasstrongcompositematerialassetsthatcouldbefocusedonthisopportunity.

• Glassreinforcedpowders:OwensCorningEuropeoffersglassreinforcedpowdersforuseinSLSprocesses.WithUSoperationsinOhio,thiscouldbeanearlygrowthopportunityinthestate.

3. Research,Development,Engineering,andDesign:InAugust2012,AmericaMakes,theNationalAdditiveManufacturingInnovationInstitute,wasfoundedinYoungstown,Ohio,asapublic-privatepartnershiptoacceleratetheresearchanddevelopment(R&D)ofAMandtosuccessfullytransitiontechnologytotheU.S.manufacturingindustry.AmericaMakes’federalpartnersincludeNSF,NASA,DOD,andDOE,aswellastheDepartmentofEducationandtheDepartmentofCommerce.


AsofFebruary2016,AmericaMakesisengagedwithmorethan160memberorganizationsandhasleveragedmorethan$100millioninpublicandprivatefundsforresearchanddevelopprojects.NortheastOhiorepresentsmorethanonethirdoftheentirepublicpost-secondaryeducationsystemintheStateofOhio,includingseveralwithspecificemphasisonsupportingmanufacturingandadditivemanufacturingeducation.AmongtheseareYoungstownStateUniversity,oneofthefoundingmembersofAmericaMakes,theUniversityofAkronwithitsstrengthinpolymers,andCuyahogaCommunityCollege,recipientofa$2.5-millionDepartmentofLaborawardtoestablishAMeducationprograms.Additionally,northeastOhioishometoCaseWesternReserveUniversity,anotherfoundingmemberofAmericaMakesandaworldclassresearchuniversity.ExpandingacrosstheborderintoPennsylvania,theregionalstrengthoftheTechBeltalsoincludesstrong,AM-centricprogramsatCarnegieMellonUniversity,theUniversityofPittsburgh,andRobertMorrisUniversity.

Amongthemostvaluableproductsofthisregionareitsengineeringandtechnologygraduateswhosupportmanufacturingcompaniesacrossthecountryandaroundtheworld.NortheastOhio’sstrengthinthistechnologywillonlycontinuetoaddtothevalueofthearea’sgraduatesandtherateatwhichtheyarepulledoutoftheregiontofilljobsaroundthecountry.Unfortunately,thoughOhioisoneofthemostproductivestatesintermsofcollegedegreespercapita,itranks35thinthenationforresidentswithacollegedegree.Theregion’stalent,particularlythosewithin-demandskillsets,isnotwellretainedwithinthestate.

ThoughnortheastOhiohasahighdensityofmanufacturing,itdoesnotpossessahighproportionoftheassociatedengineering.TheabilitytoincorporateAMprocessesintothesupplychainrequiresauthorityoverdesignandprocessspecifications.Theoverwhelmingmajorityofmanufacturersintheregionaresmall,tieredsupplierswhohavelittleornoinputtodesign.Forthelargecorporationsthatdohaveamanufacturingpresenceintheregion,mostarestrictlymanufacturingarmswithcorporateengineeringheadquarteredoutsidetheregion.

Ananticipatedby-productofAMadoptionwillbeamigrationofengineeringtalentawayfromthecentralcorporatestructureandclosertothepointofmanufacture.Thiswouldbeconsistentwithanexpectedshifttowardgreatercustomization,fasterdesigncycles,andhighercomplexitiesinmanufacturingthatwillbecomeincreasinglycommon.Throughthatevolution,northeastOhiowillcontinuetobeacriticalsupplierofengineeringandtechnicalworkforcetalentaswellasagrowingconsumerofthattalent.


4. RevenueandJobGrowthProjections:ThepotentialforAMmarketimpactnationallyissignificant,yetAMproductscurrentlyrepresentlessthanonepercentofallmanufacturedproductsintheU.S.Evena1percentincreaseinmanufacturingoutputduetoAMwouldtranslatetoa$1billionimpactinOhio,asOhioproducesalmost$100billioninmanufacturingoutputandisoneofthetopmanufacturingworkforcestatesinthecountry.Asdetailedabove,theavailablemarketforAMtoolingisexpectedtogrowdramaticallyto$8.8billionintheUSby2020,providinga$1billionopportunityforOhio.Projectionsformaterialsanddirectpartproductionservicesgrowthinthestatemustbemoretemperedintheshortterm,duetothebarrierstoentrydetailedelsewhereinthisreport.Realistically,todayOhioproducesatbest$10-20millionofthe$115millionfilamentsegmentofAMmaterialsrevenue,andalmostnoneoftheremainingsegmentsinmetals,photopolymersandLSpolymerpowders.Thus,onlyafewpercentshareoftheestimated$2.5BtotalAMmaterialsmarketin2020isrealisticforOhio,assumingclosedsystemsandpatentbarrierspersistthroughmostofthattimeframe.Amajoralliancetosupplynewopensourcesystemscouldpossiblyalterthattrajectory.Directpartproductionshareishardertopredict,butcertainlynortheastOhio’ssharetodayisjustafewpercentoftheglobal$1.7billionsegment.

Estimatesofjobsinadditivemanufacturingprovetobedifficultduetothevariabilityofanemergingtechnology,andtheproprietarynatureofAMtechnologies.AreportissuedbytheAmericanJobsProject,“OhioJobsProject,”estimatesOhio’scurrentmarketshareofthe3Dprintersystemmanufacturingand3Dprintingservicesindustriesatapproximately4percent.Thereportarguesthat,ifaconcertedeffortweremadetoexpandthestate’sAMshareto10percentoverthenext15years,Ohiocouldyieldgrowthofover4,400jobsannually,withacorresponding65,000job-yearsgainedoverthenextfifteenyears.Ajobyearisdefinedasonefull-timeequivalentjobforoneyear.InnortheastOhio,thelargenumberofplasticsandmetalsfabricationcompaniessuggestthatthebestopportunityforrealizationofthisjobgrowthisbymoreofthesefirmsadoptingAMfortoolingapplicationsintheshorttermandpartproductionlongerterm.


COMPETITIVEANALYSISIV. COMPETITITVEANALYSIS

A. BenchmarkingNortheastOhioagainstOtherRegions

AcomparisonbetweenAMactivityinnortheastOhioandotherregionsoftheU.S.revealsthattheAMindustryremainsrelativelyfragmented,withnooneregionmonopolizingtheresourcesorproductionatthistime.

Leadingcompetitorsinclude:

1. Pittsburgh:PittsburghisbecominganAMtechnicalhubforseveralreasons,includingaccessibilitytotheexistingresourcesofCarnegieMellonUniversity,theUniversityofPittsburgh,PennStateUniversity(PSU)andAmericaMakes.Theregionboastsstrongassetsinsoftwareandrobotics.Additionally,GEandAlcoahaverecentlyestablishedAMfacilitiesinPittsburgh.Alcoa,inparticular,isusingthestrongmetalsindustryofthetristateregionasanopportunitytoexpanditsAMmetalpowdersproductioninPittsburgh.GivenPittsburgh’sadjacencyandthecomplementaryAMassetsitholdswithnortheastOhio,acollaborativeTechBelt(stretchingfromClevelandtoPittsburgh)strategypresentsobviousbenefits.

2. SanFranciscoBayArea:HPandCarbon,bothinnovatorsofAMmachinery,havecenteredtheirbusinessoperationsintheBayArea.Carbon,citedtheavailabilityofventurecapitalandtalent(software,InternetofThings(IoT)andelectronics)asprimaryreasons.

3. Texas:BecausetheUniversityofTexasatElPaso(UTEP)hasfundamentallystrongAMcomponents,theUniversityhasbeenselectedasthefirstAmericaMakessatellite.AlcoaandEssentium,bothmajorcorporateplayersintheAMspace,havealsoestablishedoperationsinTexas.HardwaremanufacturerEssentiumhasrecentlydevelopedanovelmicrowaveprocess.

4. NewEngland:StrongbiomedicalparticipantsandstartupsaredrawingAMresourcestoNewEngland:examplesincludeVoxel8andtheU.S.headquartersofEOS,amajorGermandirectmetallasersintering(DMLS)machineryleader.

5. Michigan:ThemanufacturinginfrastructurethatdevelopedasaresultoftheautoindustryhasattractedEuropeanAMplayers,includingthreeGerman


machinemanufacturingcompanies:Voxeljet,SLMandEnvisiontec,whoseworkincludesthemanufacturingofabiologicalmaterialprinter.

6. NorthandSouthCarolina:Thepresenceof3DSystemsinRockHill,SouthCarolina,alongwithmajorOEMslikeBoeing,BMWandVolvo,havecreatedastrongregionalAMbase.

7. Minneapolis:TheAMmakeupoftheCityofMinneapolisisbenefitingsignificantlyfromtheU.S.headquartersofStratasys,aworldleaderin3DP,aswellasthepresenceoftheRedEyeservicebureauandaconsiderablemedicaltechnologybaseassociatedwithover36biomedicaltechnologiescompanieslocatedwiththecityandastrongpartnershipwiththeUniversityofMinnesota’sMinneapoliscampus.

8. NewYork:In2012,BuffaloManufacturingWorks(previouslyknownastheBuffaloNiagaraInstituteforAdvancedManufacturingCompetitiveness)benefittedfromaninvestmentof$45millionaspartofNewYorkStateGovernorAndrewM.Cuomo’sBuffaloBillionInvestmentDevelopmentPlan.ThatinvestmenthasspurredthedevelopmentofAMfacilities,equipmentandtalentacquisition.In2014,Ohio-basedEWIwasselectedastheoperatingpartnerforBuffaloManufacturingWorks.


FigureEbelowillustratesclustersofmajorcommercialAMhardwareandmaterialssuppliersintheU.S.asof2016.ThemaprevealstightclustersinCaliforniaandNewEnglandandloosely-structuredclustersthroughouttheMidwest.ThereappearstobenoclearlinkbetweenhardwareandmaterialsclustersanywhereintheU.S.

FigureE:

MajorCommercialAMClustersinHardwareandMaterials

NortheastOhio'scentrallocationamongtherelativelylooseclusteringofAMassetsintheMidwestregionsuggestsgoodopportunityfornortheastOhiotoestablishitselfasaleaderinprovidingcentralmarketingandoutreachcampaignsfortheentireClevelandtoPittsburghTechBeltregion.Infact,itwasthepreexistingpartnershipswithinthisregionthatledtothefederaldesignationofYoungstown(thegeographiccenterofthisarea)asthehostofAmericaMakes.NortheastOhiocanestablishthisleadershiprolebyinitiatingpartnershipswithneighboringregionsthatoffercomplementaryassets.TheMay2017RAPIDshowthatwillbehostedinPittsburgh,PA,providesonesuchnear-termopportunitytoestablishaunifiedAMpresence.


AssetsInventory

NortheastOhioV. ASSETINVENTORY

A. NortheastOhio’sAMSupplyChain

Thestudyidentified~165distinctcompaniesandorganizationsdirectlyinvolvedintheAMsupplychain.TheseassetswerecataloguedashavingdirectinvolvementinspecificsectorsoftheAMsupplychain;35companieswereidentifiedashavinginvolvementinmorethanonesector.Followingisabreakdownofthevaluechainsegmentsidentifiedasaresultoftheexercise:

1. Materials:19companies• polymers• metals• sands• otherinorganicmaterials

Theregion’sAMmaterialsassetsincludeindustryleaders3DSystems,throughitsacquisitionofVillagePlasticsinNorton,andAlcoa,throughitsacquisitionofRTIInternationalMetalsinNiles.LubrizolisanotherpotentialparticipantthroughitsworkonFDMfilaments.Afewstart-upsintheregionarealsomarketingFDMfilaments.

2. Systems/SystemsParts:15companies• 3DPsystemsforindustryandhobbyistuse• manufacturedpartsfor3Dprinters(notnecessarilyAMproduced)

Thefifteenparticipantsinthissegmentincludeseveralstartupcompaniesmanufacturingdesktop3Dprinters.MostnotableoftheseisMakerGearinBeachwood,sellingdesktopsystemsgloballyforseveralyears.LincolnElectricrepresentsasignificantnewentrantinindustrialmetalprinters,throughitspioneeringworkinconjunctionwithCWRUandAmericaMakes.TheregionalsoishometosystempartsproducerssuchasStrangpresse.

3. Design/Engineering:14companies• designingandengineeringservicesspecificto3DP

NortheastOhioboastsstrongdesignandengineeringassetsskilledintheuseofAM.TheseincludedesignhousessuchasNottinghamSpirkandSmartShape,servicebureausRP+MandTheTechnologyHouse,aswellasdesigncapabilities


withinlargeregionalmanufacturerssuchasParkerHannifin,Caterpillar,Swagelok,DieboldandTimken.

4. Production:85companies• applicationsincludeprototyping,toolinganddirectpartsproduction• servicebureausproducingforothers• end-usercompaniesandmanufacturersproducingforthemselves

PartsproductionisclearlythestrengthoftheregioninAM,with85companiesidentifiedandprobablymanymorethanthatareyettobedetermined.Theregionishometotwoverygoodservicebureausinrp+mandTheTechnologyHouse.Dozensofmetalfabricators,tool&diemakersandplasticprocessorsareusingAMtodayorwouldliketolearnhowtoapplyittotheirbusinesses.

5. PostProcessing:7companies• processesincludesealing,polishingandpainting• servicebureausandmanufacturersperformingthisin-house• companiesofferingthisasathird-partyservice

PostprocessingisanimportantstepinAMpartproduction.Mostassetsintheregionarewithintheservicebureausandpartmanufacturers.

6. ThirdPartyResearch&Development:18organizations(Thiscountdoesnotincludein-houseR&Dbymanufacturers)• highereducationinstitutions• government-fundedorganizations• industryorganizations

NortheastOhioisexceptionallystronginthisrespectwithAmericaMakesprovidingfundingandstrategicleadershipindevelopmentofmanufacturingtechnologies,andCWRU,YSU,CSUandUAofferingprogramsonAMdesignandengineering.CWRU’sthink[box]isasubstantialdedicatedAMteachingasset,andYSU’sengineeringcurriculumofferssomeofthemostfocusedAMtraininginthecountry.

7. Workforce:19organizations• formaleducation• certification• trainingandprofessionaldevelopment


Theregionisalsorichinworkforcedevelopmentprograms,includingadedicatedprogramatCuyahogaCommunityCollege,andnewerAMprogramsatStarkStateandLorainCountycommunitycolleges.

8. ThirdPartyTesting:9companies• testing• measurement• inspection

9. ValueAdded:3companies• value-addedresellersandservicersofequipmentandsystems

10. Sourcing:6companies(Generallynotanin-houseservice)• production“middlemen,”takingtheprototypeorproductiontoanetworkof

manufacturers,producers,designersSoftware,whileaveryimportantcomponentoftheAMvaluechain,appearstobeanunder-representedsectorinnortheastOhio.

FigureFbelowillustratesbypercentagetheassetsthatcompriseeachsupplychainsectorinnortheastOhio.Theregion’sstrengthsareevidentinthesectorsofproduction,materials,designandengineering,R&Dandworkforceopportunities.ThesestrengthswereusedtoguidetheVoice-of-the-Customer(VOC)interviewsandanalysisthatfollowsinSectionVIofthisreport,withastrongfocusonidentificationofusecaseexamplesinpartproduction.


B.InvestmentsinNortheastOhio’sAMInfrastructure

Inadditiontovaluechainassets,aregioncanachievecompetitiveadvantagethroughwell-placedinvestmentsininfrastructure.ThemostimportantoftheseinnortheastOhioisthelocationinYoungstownofAmericaMakes,thefederallyfundedNMII.Buildingfromthiscore,theStateofOhioiswell-positionedtogarnersignificanteconomicgainsshoulditleveragetheAMassetsalreadyhousedintheState;andeffectivelyintegratethosetechnologiesintotheexistingmanufacturinginfrastructure.

SeveralexistingstateandregionalinitiativesarealreadyinplaceinOhioasdetailedbelow:

1. EconomicDevelopment:Threeeconomicdevelopmentprograms,theOhioDevelopmentServicesAgency,OhioThirdFrontier(OTF),OhioDepartmentofHigherEducation,andJobsOhiohavebeeninvestingintheadvancementofAMacrosstheState.

2. HybridManufacturing:In2014,theOTF’sAdvancedManufacturingProgram(AMP)providedfundingwhichenabledYBIandYSUtocreateahybridmanufacturingprogramcalledthePrecisionPrintedPartsNetwork;additionally,theYBI’sAcceleratedToolingAdoptionProgram(ATAP)isaresultofthatfunding

[CATEGORYNAME][PERCENTAGE]




(prototypes,parts,tooling)






FIGUREF:NEOVALUECHAINASSETS-STRENGTHS


initiative.SimilarinvestmentshavebeenmadeatEWIinColumbusandtheUniversityofDaytonResearchInstitute.

3. MarketingandInformationalMaterials:JobsOhiohassofarhelpedattractAMsupplychainpartnerstotheStatebydevelopingmarketingandinformationalmaterials.

4. DesignandProduction:StatesupportfortheManufacturingExtensionPartnership(MEP)hasenabledMAGNETtobecomearecognizednationalleaderwithintheMEPsystemforAMdesignandproduction.

5. AmericaMakes:TheStateofOhiocommitted$2milliontomatchfundsinvestedbytheU.S.DepartmentofDefensetoestablishAmericaMakes.

6. StartupAMCompanies:StartupAMcompaniesreceivesupportfromtheOTFEntrepreneurialSignatureProgram,andotherJumpStartEntrepreneurialNetworkpartners.

7. FacilitiesandEquipment:FundsfromtheOhioCapitalAppropriationBudgetandAppalachianRegionalCommissionhavebeeninvestedinYBIandYSUtoestablishfacilitiesandpurchaseequipmentthatwilladvanceAMactivitiesinnortheastOhio.


VOICE-OF-THE-CUSTOMER

INTERVIEWSVI. VOICE-OF-THE-CUSTOMERINTERVIEWS

ThefuturesuccessofAMinnortheastOhiodependsontheperceptionsofregionalmanufacturingcompaniesasmuchasitdoesonobjectivestatisticalanalysis.

Forthisreason,morethanfiftycompaniescomprisingnortheastOhio'sAMvaluechainwereinterviewedduringthecourseofthisstudy.TheobjectivewastoobtainarelativelycomprehensivepictureofAM'sintegrationintotheregionalmanufacturing,designandtrainingparadigm.Specificinformationregardingeachparticipatingcompany'sperceptionsandapplicationsofAMweregathered,including:familiaritywithorcurrentapplicationsofAM;perceivedbarrierstoadoption;factorsthatwouldenhancebusinessappeal;andpreferredtimelineofintegration.Generalinsightsabouttrainingopportunitiesandend-userneedswerealsoobtained.

BusinessusecasesforeachofnortheastOhio'sAMsupplychainsectorswerealsoobtained,andthepresentationofthosesummariesisincludedinSectionVIIofthisstudy.

A. PartsManufacturers:Voice-of-theCustomerInterviews

Thepartsmanufacturersthatparticipatedintheinterviewprocessconsistedprimarilyofthefollowinggroupsofmetalandplasticprocessors,mostofwhichalsodesignormanufacturetheirowntoolingandfixtures,sincethismanufacturingsectorrepresentssignificantopportunitiesforregionalAMgrowth.Independenttoolanddieshopswerealsocontactedbutnoneagreedtoparticipateintheinterviewprocess.Thetwomajorservicebureausarenotcoveredinthissection,butarecoveredseparatelylaterinthisreport.Thepartsmanufacturersinterviewedincluded:

• Thermoplasticinjectionmoldersdoinghighvolumeproductionofbins,applianceandautomotiveparts,electricalfixtures,standbypower,medicalhousings,telecomcomponentsandhouseholdgoods,andincludingthermoplasticmolderswithintegratedtoolbuilding;

• Thermosetcompoundsandmoldersthatusecompressionandinjectionmoldingforlargepartssuchasbusinessmachines,truckengineandexteriorcomponents,construction,electricalcomponents,appliancepartsandmedicalhousings,andincludingmoldersofsiliconeelastomerparts;


• Metalfabricationshopsthatsupplypartsandtoolingprimarilyforautomotive,tires,medicaldevicesandaerospaceapplications.SomeoftheseactassubcontractorstoregionalmachineshopsthatdomoldassemblyandactasdirectsupplierstoOEMs.

1. PartsManufacturers:CurrentAMApplications

• Prototypingistheprimaryuse.FDMmachinesarecommonlyusedtomakedemosforcustomers.Typicalresponsesfromthisindustrygroupinclude:“Engineeringgroupsoftenhaveasmallprinterforprototypes,andsometimesforcustomerpresentation.”They“useFDMinternallytomakeprototypesforshowingdesigntocustomerstogetapproval.”“Weown3Dprinterforprototypingtoconfirmdesignformoldproduction.”“WeuseFDMpartsasamarketingtooltoshowpartsorjustifydesignimprovementstocustomers.”MostmanufacturersseegreatvalueintheuseofAMmachinesforprototyping,shorteningdesigncyclesandimprovingcustomerresponsetonewproductsanddesigns.

• Afterprototyping,toolingandfixturesarethemostcommonshorttermapplications.Internalvalueiscreatedwhencompaniesemploy3DPfortoolingbecauseitcanenhanceproductionefficiencyandsavecost,especiallyondesigniterations.Someapplicationsincludeproducingjigs,fixturesandmoldinserts.Theseusesrequirenocustomerapprovalorqualification,butcreateimmediateROIinproductionefficiency.EventhosecompaniesthatrelycompletelyontraditionalmanufacturingacceptthatvaluecreationwouldresultfromincorporatingAM.Applicationswereidentifiedwithinalltypesofpartmanufacturers.

• MetalAMprocessingmachines(DirectMetalLaserSintering)arenotcommonamongregionalprocessorsduetothehighcapitalcostforentry.TheexistingDMLSmanufacturersintheregionrunstainless,stainlessalloysandAluminum,butnottitanium.Productionpartapplicationexamplesinvolvedpartconsolidationasavaluecreationelement.

• 3Dprintingoftitaniumhasnotbeenadoptedforseveralreasons:inventoryexpense,capitalneededtomodifymachines,needforargontankageandsafetyconcerns.Processorshavenomotivationtojustifytheseexpenses,sincenovolumeapplicationsarereadilyevident.AerospaceindustryapplicationsarenotaccessibleasTier1suppliersarebackwardintegratedandproducetheirown3Dprintedparts.

• Withthisbarriertoaerospaceentry,metalAMprocessorshavebeenmoresuccessfulintoolingapplications.Examplesincludetiremoldsandfixturesformedicaldevicefabrication.Someexpressedaclearinterestinaccessingmoreopportunitiesinbiomedicaluses.


• AMisnotcurrentlyaviablefinishedpartproductionoptionformostoftheplasticinjectionmoldersthatwereinterviewed,sincetheyengageinthehigh-volumeproductionofrelativelylargepartsforautomotive,appliance,housings,etc.ManyrecognizethevalueofAMtoolinginsmallvolume,highervalueproduction,andwouldliketolearnhowtouseAMtoaccessthisportionofthemarket.SomehaveconsideredtheacquisitionofcompaniesthatengageinAMforthatpurpose.

• CompanieswithlimitedfamiliaritywithAMwantedtolearnmoreaboutprocessesandcapabilitiesfortooling,perhapsthrougheventsofferedatAmericaMakes.

2.PartsManufacturers:BarrierstoAMAdoption

• Mostmoldersoutsourcefullmolddesign/buildduetolowerlaborcostsinChina,thoughregionalmaterialcostsarecomparable.Thesecompaniestypicallydohavein-houseCADcapabilities.

• ThermosetBMC/SMCisglassfilledandabrasive,limitingtheuseofplastictoolinserts.

• LowcomplexitytoolsdonotrequiretheadvantagesofferedbyAM.• Inindustrialapplicationswithslowadoptioncycles,amulti-cavitytoolis

partiallyfinished,limitingtheneedforprototypingtools.• Thermalresistanceisalimitationforthermosettooling,sincemoldshavehot

oilorheatercartridgesandmaintainatemperatureofapproximately300degreesFahrenheit.

• AMpartswithlowdraftanglesrequireasecondaryoperation,sincetheAMfinishwouldbeunacceptable.

• Softtoolingisn’tviableforcomplexinsertsthatincludeslidesorpinsneededbymolders.

• ThesurfacequalityofFDMpartsispoor,makingaluminumabetterandlessexpensivematerialoption.

• Sizeconstraintsareasignificantbarrier,especiallyforthethermosetmoldingoflargehousings.

• MaintainingaworkforcewithnecessarydesignskillsisabarriertoAMintegration.

• AMsolutionsareconsideredexperimentalandthereforenottimeworthybysomecompanyleaders.Employeeswhoareinterestedininnovatingarepressuredtoabandontheirefforts.

• ManydonotunderstandthevaluepropositionandrelevantapplicationsofAMtechnology.

• Misperceptionsexistthatproductionvolumeistoolowandmaterialsaretoosoftfortooling.


• Costisabarrierinthemindsofmany.Atleastonemoldergotridofprototypingprintersbecausetheywereunreliableandtooexpensivetomaintain.ThatcompanynowoutsourcesAMtoservicebureausasneeded.

3. PartsManufacturers:EncouragingAMAppeal

• Maximizemachineusagebyincreasingpartproductionapplications,includingthosethatarenot"missioncritical."

• Educateend-users,suchasOEMs,aboutthepotentialofAMcapabilities.• Identifyopportunitiestoengageatinceptionofdesign,sinceredesignisnot

anoptionforqualifiedparts.• MakeconnectionswithdesignandinnovationteamsatlargeregionalOEMs.• EncouragemanagementtoinvestinAMR&Dbysharingpositiveusecases,

showinghowcompetitorsarecuttingcostswithAMapplications,andbyhelpingcompaniesidentifyapplicationsrelevanttotheirproduction.

• IncreasecompetitivenesswiththeAsianmarket,sinceU.S.moldersareturningtoChinafortoolingexpertiseandproducts,ratherthanjustthelowestprice.

• Increasevolumeproduction,arrayofmaterialsandmaterialdurabilityforAMtooling.

• Identifyapplicationsthatjustifythepurchaseofamachine,suchasproductionoflegacypartsfortheautoindustryorsmallrunapplicationsinvolumesofhundreds.

• DemonstrateROI,asmostwouldbeinterestedinexpandingtoolingapplicationsthatarecost-effective.

• ImplementcommonstandardsandimprovedreproducibilityrequiredtoserviceTier1andTier2suppliers.

4. PartsManufacturers:TimelineofIntegration

• ManycompanieshavenoplanstoimplementAMforpartsproduction,buttheywouldliketolearnmoreandwouldconsideradoptingAMprocessesasappropriate.

• Othershaveageneralinterest,butseenoshorttermbenefitstodriveadoption.

• ManywishtoimplementAMnowfortooling,jigs,andfixtureswhereproductionvolumeandsizearefeasible.

• Somecompaniesseeopportunitiesforvaluableapplicationsnow,buttheyarewaitingforevidenceofROI.


• OncetheyhavemoreR&Dtime,manycompanieswouldliketoengageinlowvolumeproductionanddesigniterationsformoldinserts.

• Whenproductionvolumeincreasesandmaterialsarehardenough,thosecompaniesalreadyusingAMforprototypingarewillingtoconsiderusingAMfortoolingpurposes.

• Customersarebeginningtoaskaboutapplications,sincetheyhaveseenandtouchedprototypesthatenable“asbuilt”visualization.

B. ServiceBureaus

1.TheTechnologyHouse

1. TTH:CurrentAMApplications• TTHhasbeenusingSLAtechnologysince1996.SLAisusedbytheir

customersforfitandfunction,sometesting,marketingmodelsandshowmodels.TherearehalfadozenapplicationswherethousandsofSLApartsarerunforproductionapplicationsforaerospaceandcommercialproductseveryyear.InternallySLA’sareusedformasterpatternsforSiliconemolds,foundrypatterns,andvisualaidsforCNCmachiningandinjectionmoldingprojects.FDMpatternsarerunforcustomersforfunctionalpartsoutofengineeringgradematerialsaswellaspartsfortesting.TheyuseFDMinternallyforholdingfixtures,QCcheckfixtures,go/no-gogauges,endeffectorsandhandlingfixtures.ThevolumeofcustomerprototypinghasdiminishedsomewhatsincemoreOEMsandprocessorshavepurchasedAMequipment.CustomeruseofSLAmoldinsertsislimitedbecause,whiletheircostisonlyhalfthatofAI-producedinserts,SLA-manufacturedinsertsaremorelikelytofailafterlimiteduse.

2. TTH:BarrierstoAMProductionAdoption• Productionspeedandmaterialsavailabilityarekeybarrierstothebroader

adoptionofAMasproductionparts.SLA,FDM,SLSandDMLSarecurrentlybeingusedinsomeproductionapplicationsandhavebeenfor10+years.

3. TTH:EncouragingAMProductionAdoption

• InSeptemberof2015TTHwasselectedasoneof4betasitesintheUSAforthenewCarbonM1machinerunningtheCLIPtechnology.TTHchosetheprocessbecauseoftherangeofIsotropicproductionqualitymaterialsavailableaswellasthe“injectionmoldedquality”surfacefinishedrightoff


themachine.Becauseofthesuccessofthemachineoverthepast10months,TTHhasadded2moreCarbonmachinesforatotalof3.

3. TTH:TimelineforAMProductionIntegration• TTHbelievesthetimelineforproductionintegrationoftheCarbonCLIP

processalongwithothernewertechnologieswithimprovedmaterialcapabilitieshasalreadystarted.Materialsarethekey,asthelackofproductionqualitymaterialsavailableuntilnowhasimpededthegrowthofadditiveintotheproductionarena.TTHsaystheeliminationofdesignrestrictionsisakeyvalueaddforprintingofproductionparts.Designerswillnolongerhavetodesignformanufacturability,butforweightsavingsaswellaspartsconsolidation.AMprovidestheabilitytocreateonepartthatwouldhavebeenmultiplepartassembliesinthepast.Notoolingcostsisanotherbenefittoprintingvsinjectionmolding.Currentlyprintingproductionpartsinplasticsormetalsisaniche,butthecontinuousadvancementofthesenewtechnologiesisallowingnewopportunitiestotakeholdandgrowveryquickly.

2.rp+m

1. rp+m:CurrentAMApplications

rp+misarecognizedmarketleaderinAMpartsproduction,andtheyactivelyadvocateanindustryfocusonhighcomplexityparts,partsintegrationandtheoptimizationofuniquematerialstomaximizethevalueofAM.rp+mpossessesabroadrangeofAMmachines,makingpartsfromplastic,metalandceramic.rp+malsopossessesstrongmaterialdevelopmentresourcesandoffersthisasaservicetotheAMindustry.Asaresult,theirbusinessissplitabout50/50betweenpartsproductionandR&Deffortsintheformofcollaborativeprojects,contractR&Dorconsulting.

2. rp+m:BarrierstoAMUses

• Lessthan5%ofdesignssubmittedtorp+mareoptimizedforAM,andthisresultsinunrealisticcostexpectationsonthepartofcustomers.

• CustomershaveofferedtoselltheirAMmachinestorp+m,complainingofmaintenancecostsandtheneedfordedicatedlaborandmaterialinventory.


• Withoversupplyinthemarket,onlinejobshopsarepricedonlytocovercosts.AsignificantnumberofservicebureaushavebeensqueezedoutofthemarketbyintegratedmachineOEM/servicebureaus.Twoyearsagotherewere125servicebureausinU.S.;thatnumberisnowlessthan40.

• ClosedmodelsonmaterialsarealsostiflingAMgrowth.Asoneexample,a4-poundmaterialcanistercostsupto$3,000.Ifamanufacturerchoosestouseanothermaterial,themachinewarrantycanbevoided,whichwouldresultinhighercostsforpartsandlabor.

3. rp+m:EncouragingtheAdoptionofAM

• WhenexistingpatentsexpireornewmachineOEMsofferopensourcing,onebarriertogrowthwillberemovedandthereforeencourageAMadoption.

4. rp+m:TimelineforAMIntegration

• rp+mhasbeeninpartproductionforarangeofusesformanyyears;thecompanyagreesthattoolingisareadymarketandwouldwelcometoolingbusinessfrommoldersandfabricators.

C. OEMs/End-Users:Voice-of-the-CustomerInterviews

ThetwoleadmarketverticalsforAM,biomedicalandaerospace,arecoreindustriesfornortheastOhio,employing>11,000workershere,asshowninfigureG.Theautomotivesector,amajornortheastOhioemployer,representsshorttermAMopportunitiesintoolingaswellasafuturemarketfordirectpartsproductionviaAM.

FigureG.


1.Biomedical

NortheastOhioisrichinbiomedicalassets,withworldclasshospitalsthatincludetheClevelandClinic,UniversityHospitals,NEOMEDandAkronChildren’sHospital.TheregionalsoboastsmajorbiomedicaldeviceOEMssuchasSteris,Invacare,GoJo,GEHealthcare,Siemens,andPhilips,aswellasmajorresearchinstitutionsthatincludeCWRU,theUniversityofAkronandtheLernerResearchInstitute.OtherassetsarethevibrantstartupcommunitiesfosteredbyBio-EnterpriseinClevelandandtheAustenBioInnovationInstituteinAkron.

1.Biomedical:CurrentAMApplications• BiomedicalisamarketthatfitswellwithAM,asitprimarilyinvolvessmall

volumeuseswheretoolingcostswouldotherwisebeprohibitive.• Todate,biomedicalusecasesinvolveprototypingandproducingmedical

devices,modelsofbodyparts,pre-surgicalimaging,printingofimplantsandtoolingformedicalresearch.

• AbiomedicalfixtureapplicationistheAMproductionofmetalmandrelsviaDMLSforuseinshapingofNitinol,ashapememorymetal.

• Cleveland-basedstartupOsteoSymbionicsmanufacturescranio-facialimplantsusingAMtoprintPEEKandotherbiologicallycompatiblepolymers.Theseimplantsarepatient-specific,andbuilttomatchscansofthepatient.

• QEDisanortheastOhiocompanythatusesAMtobuildmedicaldevicesforlowvolumeapplications.QEDproducesCAT(computerizedaxialtomography)/MRI(magneticresonanceimaging)coils,whichareusedtoimagespecificbodyparts.QEDusesAMtomanufactureplasticdevicehousings;inthiscasetheeconomicsworkfortheselowvolume,highmarginproducts.

• ClevelandClinic’sLernerResearchInstituteusesAMforavarietyofapplications.Multi-colorObjetprintersareusedtocreatemodelsofbodypartsfrompatientscans.Oneapplicationofthesemodelsistoinformasurgeonbyimagingtheplaquebuildupinapatient’saortaortovisualizethevascularizationinapatientkidney.Anotherapplicationisthereproductionofapatient'svascularsystemtohelpmodelfluidflowforresearchpurposes.Inthefuture,thisworkwillallowthecustomizationofimplantssuchashipsandknees,replacingthelimitedsizesavailabletosurgeonstoday.

• Theabilitytoproduce3DP"cadavers"isthefocusofoneClevelandClinicspinout.Thecadaverscouldbeusedasteachingaidsinmedicalschools,allowingfordisease-specificsimulationsthatcouldbelinkedwiththeabilitytouseactualpatientdataforanenhancedlearningexperience.TheseAM-producedbody


simulationscouldalsobeusedasteachingaidsandassalestoolsforsurgicalproducts.

2.Biomedical:BarrierstoAMAdoption• Alimitingfactortodayindevelopingmoreadvancedmodelsandimplantsis

theavailabilityoftherangeofmaterialsneededforaccuratesimulationofbodyparts.Forexample,toaccuratelymodelanaorta,themosteffectivematerialswouldsimulateelastin,collagenandmusculature.

• Timetomarketisboundbyregulatoryconsiderations,especiallyinthebiomedicalmarket.

3.Biomedical:EncouragingAMAdoption• AsadvancementsinAMcontinue,futureapplicationswilllikelyincludethe

printingofbiologicalmaterials,scaffoldsforcellgrowth,andbroaderuseinpatient-specificimplants.

2.Aerospace

Globally,theaerospaceindustryhasbeentheleadadopterofAMforfinishedpartproduction,withhundredsofAMpartsincorporatedbyBoeingandAirbus.Thishasbeenasignificantgrowthsectorformetalpartproduction,forbothmissioncriticalandlesscriticalinteriorcomponents.Valuedriversincludeweightreduction,partsconsolidationanddesign-drivenperformanceenhancements.However,AMpartproductionapplicationsinaerospacearelimitedprimarilytoTier1supplierssuchasGE,Alcoa,PrattandAerojet.

1.Aerospace:CurrentAMApplications

• Regionally,mostoftheaerospaceindustryparticipantswereunwillingtograntinterviews,althoughweareawareofuseofAMfortoolingsuchasinvestmentcasting.

• Alcoa,anationalmanufacturerofmetalpowdersandmetalpartsforaerospace,wasgenerousinsharingusecaseexamples.Nationally,AlcoausesAMtocreatevalueinmultipleapplications,someofwhichinclude:o Productionoftitanium,aluminumandnickelpowdersatits

productionfacilityinthePittsburgharea.o MetalpartproductionviaDMLSatitsTexasfacilities,withtheseparts

beingusedthroughouttheaerospaceindustry.Ingeneral,aerospacecompaniesarerecognizingthebenefitsoflowvolumeproduction,


weightsavingsandpartsconsolidation.Alcoaisfullyintegratedfrommetalpowderproductionthroughfinishedparts.

o AlcoaalsoproducesfinishedpartsviaplasticSLS.o Softtoolingisusedinternallytoimproveprocesses;oneexampleisa

fixturethatisabletomarrypowderbottlestostoragecontainerso AlcoausesAMtoprototypetooling,suchasinvestmentcastingmolds

aswellasepoxycores.AlcoasaysitsWhitehall,Michiganplantsaves$1millionintoolingcostswhileshorteningleadtimes.

o Theyalsoprototypewindowlinealsandcomplexjoints,reducingthecustomerfeedbackcycleonnewdesigns.

o Alcoahasalsorealizedproductivityimprovementsthroughtheuseof3DPsteelorInconeltooling.Inoneinstance,theyconsolidateda17-piecefixtureintoonepart.ThesetoolingapplicationsarestagedattheirtechnicalcenterinPittsburgh,PA,andthenrolledouttoproductionfacilitiesaroundtheU.S.

o AlcoaisalsoinvestinginhybridprocessessuchasAmpliForge,whichusesAMtocreateapre-formwhichisthenfinishedviaforging.Thisprocessshortensleadtime,increasesfatiguestrengthby20percentandlowersdiecosts.

2.Aerospace:BarrierstoAMAdoption

• Tier1manufacturerscannotaffordtorisktheuseofsubcontractorsfortheproductionofmission/safetycriticalparts.VerificationandvalidationstandardssetbythegovernmentorOEMsareappropriatelystrictonsuchapplications.

• ThecurrentstateofdevelopmentofAMhasinherentmachine-to-machinevariance,materialbatchvariationsandin-houseprocessingknowhow.Asaresult,theTier1manufacturersmaketheirownpartsorlimitsubcontractingonlytokeytrustedsuppliers.Thus,therearecurrentlyveryfewopportunitiesforaservicebureauorTier2manufacturertoentertheAMaerospacesupplychain.

• Post-processingcostsareoftenashighasthebuildcost.• OneregionalaerospacesupplierinvestedinaDMLSmachine,buthas

beenunabletopenetrateaerospaceapplicationsduetotheabovesupplychainconstraints.

3.Aerospace:EncouragingAMAdoption

• Opensourcing,fasterbuildtimesandlesspost-processingwillenhanceindustrygrowth.


• Educatingend-usersregardingfinishqualityiskeytomanagingexpectationsforcriticalcomponents.

• Assistanceinidentifyingusecaseexampleswithregionalaerospacetiers.

3.AdvancedManufacturing

1.AdvancedManufacturing:CurrentAMApplications

• OEMsarebenefittinggreatlyfromtheshorteneddesigncyclesassociatedwith3DP.OneOEMinparticularsharedthattheyusesixStratasysmachinesofdifferentsizes,andallareusedtorunprototypesfortheirengineeringteam.TheyarenowreadytoupgradetwooftheirmachinestorunUltem,whichwillallowthemtomoveaheadwithsmallvolumeproductionparts.

2.AdvancedManufacturing:EncouragingAMAdoption

• ThoseOEMsinterviewedwouldliketolearnmoreaboutAMtoolingapplicationsandwouldspecificallyliketobeintroducedtoregionalsupplychainpartners.

• MorecompanieswouldengageinAMiftheycouldidentifyaclearROI.• OurworkidentifiedkeyOEMsthathaveAMdesign/engineering

resourcesintheregion,e.g.,LincolnElectric,ParkerHannifin,Diebold,Swagelok,andCaterpillar.ItisclearthatthesearevaluablegrowthassetsfornortheastOhio;attractionofsimilarresourcestonortheastOhioshouldbeakeystrategyforregionalAMgrowth.

D. Materials

Limitedinterviewsofthissupplychainsectorrevealknowledgeableplayerswithgoodcapabilities.

1.Materials:CurrentAMApplications• 3DSystemspurchasedVillagePlasticsinNorton,Ohioin2013,fromwhichit

suppliesFDMfilamentstotheindustry.WhiletheacquisitionofMakerBotbyStratasysresultedinthelossofitsconsumermarket,3DSystemsstillsellstoopensourcesystems,including10ofthelargestfilamentusersintheUS.

• 3DSystemsisalsoworkingwithregionalcompounderstoco-developnewmaterials.ThesecompoundersrunmostlyABS,PLA,HIPSandnylon6.3DSystemswillworkdirectlywithopensourcecompaniesandmaterial


suppliers,keepingthetoolingbusinessseparatefromitsproprietaryfilamentgrades.

• AfewstartupsintheregionarealsosupplyingFDMfilament,includingonewithsevenyearsoffilamentextrusionexperience.

• LubrizolhasdevelopedTPUgradesforFDMatitsBrecksvilledevelopmentfacilityandseeksassistanceinsupplychaincollaborations.Theirmaterialsrunwellonopensourcemachines.

• UniversityofAkronhasactiveR&DprogramsonAMmaterials.• InthebroaderTechBeltregion,AdditiveMetalAlloysinNWOhiois

manufacturingmetalpowdersforAM.ThreemajormetalpowdersuppliersarelocatedinthesouthwestPennsylvania/WestVirginiaarea-Alcoa,PurisandCarpenter.

2.Materials:BarrierstoAMAdoption• Metalprintingistooexpensivetosupportin-houseprototyping.• TheclosedmodelonmaterialsfromthemajormachineOEMSisamajor

barriertonewmaterialsdevelopment.• ExistingpatentportfoliosbythemajormachineOEMssupporttheirclosed

materialmodel.• Expensiveconsumablesforindustrialsystemsandlimitedoptionsfor

sourcinglessexpensivematerials.• Asmallandfragmentedmarketlimitsinterestfrommajormaterials

companies.• MachineOEMsdonotunderstandtheimportanceofreproduciblematerials

foraparticularprocessorforthedevelopmentofnewalloys.

3.Materials:EncouragingAMAdoption

• Materialssupplierswouldliketomeetametalprinterintheregionsotheycanexplorethevalueforcomplexparts.Theyareconfidentthatthereisvalueinthissectorandtheybelievetheirengineershavesufficientknowledgeofthetoolsandtheirdesignstoaddvalue.

• TestingtheintegrityofmaterialsandunderstandingROIonindustrialassetswouldencourageadoptionofAMprocesses.

• IdentificationofpotentialuserswouldassistadoptionofAM.• SharedIP,successfulcasestudies,accesstomaterialtestingandbetter

educationamongpotentialend-userswouldallencourageadoption.• Confidenceinthespeed,accessibilityandscalabilityofAMtechnologywould

aidadoption.


• OpensourcemachineswouldeliminatetimewastedandsignificantlyimpactthepotentialofAMadoption.

• Betterprocesscontrols.• Forsmallbusinesses,betteraccessibilitytoAmericaMakes,theopportunity

toleverageYBI'snetworkingcapabilitiesandtrainingprograms.• RelationshipswithexistingmachineOEMswouldexpandopportunities,since

OEMsarecurrentlyblockingtheabilitytodevelopcustomizedproducts.

E. DesignHouses

1. DesignHouses:CurrentAMApplications

• Theregionalcustomdesignstudiosprovideavaluedasset,giventheir20+yearsofexperienceinAMprototyping.

• OnelocaldesignhousecitedanexampleinwhichitproducesAMpartsforalarge,lowvolumehousing.ThepoorqualityFDMfinishisacceptablesincethehousingisinternaltothefinalassembly.TheAMparthasbeendesignedwiththeintentthatitcaneventuallybereplicatedinamoldedpart,oncevolumegrows.

• TheAMdesignassetsatCWRU’s[think]boxandMAGNETprovideadditionaldesignresourcesforprototypingviaAM.

2. DesignHouses:BarrierstoAMAdoption

• Aesthetics,structure,surfacefinishandcostareallbarrierstoadoptionfordesignhouses.

• AMisnotalwayscost-effective.Oneresourcesharedanexampleofapartcosting$10toproduceviaFDM;thecosttocutamoldinChinaforthepartwas$5,000.Thus,forquantitiesgreaterthanafewhundred,thetraditionalapproachwouldprovidebetterqualityandlowerprice.

• Analternativeroutetoprototypingismachinedplasticmodels.

3. DesignHouses:EncouragingAMAdoption

• Nodesignhousefeedbackwasgatheredinresponsetothisquestion.

4. DesignHouses:TimelineforIntegration

• DesignhousesseenoneedtobuytheirownAMassetsbeyondsimpledesktopunits.Iftheyneedbettercapabilityorextendedruns,theyuseservicebureauslikeTTHorrp+mtoprintpartsforthem.


F. WorkforceTrainingandEducation

1. IndustryTrainingandHiringPractices

AMPositionsinCorporateStructure

• Mostcompaniescontinuetoemploymulti-purposeworkers(cross-trained)sincetheirbusinessvolumeisnotyetsufficienttosupportthehiringoflower-levelproductionworkers.

• AMislargelyperceivedasafree-standingtechnologyratherthanatooltobeintegratedintothebroadermanufacturingenterprise.

• Afewcompanieshirestudentstorunproductionjobsandmanagemachinemaintenanceandprogramming.

SkillNeeds

• InterviewparticipantsgenerallyagreethatdesignskillsarethemostcriticalcomponentoftheAMprocessand,therefore,requirethemostfocusedtrainingandhiringprocesses.Asonerespondentnoted,thekeytoregionalAMsuccessistraininganewwaveofdesignersandhighlyskilledprogrammers.DesignconsiderationsforAM,however,arenotyetuniversallyunderstoodandarenotyetdeeplyintegratedintocurricula.

• CurrentAMhiringneedsareprimarilyintheareaofpost-processingand3Ddesign.

• Designhousesaremostlikelytohireyoung,talenteddesignerswhoaretrainedinAMbutwhomaylackexperienceandcontextforintegrationofthesetechnologiesintothebroadermanufacturingecosystem.

• Studentscomingoutofcurrentprogramsexhibitnarrowviewintothetechnology,coupledwithlimitedcurricularguidanceontheappropriateuseofthisequipmentforreal-worldapplications.Thisleadstostudentswhoareexcitedaboutthetechnologybutpoorlyinformedaboutitspotential.

• OperatortrainingforAMwasnotidentifiedasapriorityneed.

CredentialExpectationsforNewHires

• Somecompaniesseekindividualswithaformaleducation(i.e.engineeringdegree)withintegratedelementsofAM.

• ResponderswouldliketoseenewaccreditedprogramsinManufacturingEngineeringwithanemphasisondigitalmanufacturing.


• IndustrieswouldliketobeabletorelyuponnationallyrecognizedcredentialsasawaytovetpotentialemployeeswithAMexpertise.However,nosuitablecredentialhasyetemergedasadefactostandard.

TrainingforIncumbentWorkforce

• TheAMprocesschangestheroleofmachiniststosomedegree,sotheywillneedtoberetrainedinAMskills.

• Manycompanieshavemorematureleadengineerswhoarelessfamiliarwith3DP,managingyoungerengineerswhoaremorefamiliarwiththevaluepropositionof3DP.

• Mostparticipatingcompaniescurrentlyrelyonsimilarandrelativelyinformaltrainingrequirementsincluding:o IndependentprogramsatcompaniessuchasDeloitteandMOOGso MakerFairsandotherindustryeventsandspeakerso OpportunitiesofferedthroughAmericaMakesandYBIo Personalresearcho Hands-onworkexperience,includingtheabilitytodesignandproduce

prototypesusingoff-the-shelfparts• Somenotethattheselimitedtrainingoptionscouldbecomeanissueshould

productionlevelsrampupquickly.

2.CurrentAMEducationalCurricula

ContentandDelivery

• SomeregionalcurriculaarebasedupontheAMBodyofKnowledgeorSMEcurriculumthathasbeendevelopedbytheMilwaukeeSchoolofEngineering.

• EducatorsatalllevelsexhibitlackofbroadfamiliaritywiththebasicAMtechnologiesandunderstandingoftheopportunitiestoincorporatethetechnologiesintocurrentpractice.Thisisarequisiteskilltodevelopappropriatecurricula.

• Currenteducationandtrainingprogramstendtoemphasizeprototypingandtheuseofpolymerextrusionequipmentexclusively(predominantlyMakerBot).

CurricularIntegration

• CurrentAM-specificprogramsoftendonotintegratetobroadercurricula(e.g.mechanicalengineeringorchemicalengineering).


• AMcoursesatallinstitutionsdonotappeartobeintegratedintothecurrententerpriseframeworkofskillsanddisciplines.Thislimitstheaccessibilityofthetechnologyasanenablingtoolwithrelevancetoabroadrangeofbothtechnicalandnon-technicaldisciplines.

• Discipline-specificcoursesandmaylimitthereachofthetechnologyintothebroaderinstitutionalcurriculum.

• FacultywholackadequatefamiliaritywiththebreadthofbasicAMtechnologiesandsufficientunderstandingoftheopportunitiestoapplythetechnologymaynotappropriatelyintegratethosetechnologiesintoexistingcurricula.Studentsarenotnecessarilyreceivingsuitablecontentandcontext.

• ManyuniversitiesnowoffergraduatelevelcoursesonAM.ThesecoursesprovidebroadintroductionstotheconceptsofAMandprovidestudentswithcontexttoapplyfundamentalknowledgefromwithintheirdisciplinetoAMapplications.

TopicCoverage

• UndergraduatecurriculaincreasinglyincorporatesAM,butareoverwhelminglybasedonconsumer-focuseddesktopmachines(MakerBotsaremostprevalent).Thenarrowviewintothetechnology,coupledwithlimitedcurricularguidanceontheappropriateuseofthisequipmentforreal-worldapplicationsleadstostudentswhoareexcitedaboutthetechnologybutpoorlyinformedaboutitspotential.Thisisnotsimplyattributabletolackofresources.A$2.5-millioninvestmentbytheDepartmentofLaborhasledtoadegreeprogrampatternedaftertheSME/MSOEBodyofKnowledge.Theprogramhasonlypolymerextrusionmachinesandfocusesprincipallyonprototyping.

• CurriculatendtoemphasizeprototypingwithlittleformalincorporationofAMintocoremanufacturingprocessescoursesormanufacturingenterprisesmorebroadly.

• DesignconsiderationsforAMarealsonotyetformallyincludedincurricula.• Designstrategiesarecomplexandinastateofrapidevolution.Process

capabilitiesandlimitationsareprocessspecific.Thus,studentswhohaveaccessonlytoextrusion-basedprocessesmayhavelimitedunderstandingofthebroaderdesigncapabilitiesandlimitationsofAM.

G.EntrepreneurshipandCommercialization

1. EntrepreneurshipandCommercialization:CurrentAMApplications


• Existingstart-upsinhardwareproductionandcomponentparts,education

andtraining,materialsandproduction.• StrongsupportthroughstatesupportedprogramslikeEntrepreneurial

SignatureProgram,PreSeedFund,etc.

2. EntrepreneurshipandCommercialization:Barriers

• ClosedrelationshipsbetweenOEMsandmaterialssupplierslimitmarketopportunities,particularlyinpolymers.

• OEMsand/ortheiremployeesareriskadverse.• Theabundanceoflowqualitydesktopprintershasresultedinamarketthat

issaturatedandsuspiciousofnewproducts.• Softwarelimitationsreducetheabilityoffiletransfersfromcompaniesto

customersfordownloadingandprintingbecausethereisnowaytocontrolthevolumeofproductsthatwillbeprinted.

• Aneducatedandsophisticatedinvestmentbaseisneeded,butcopyrightandpatentissuesandotheruncertaintieslimitinvestorinterest.

• CompaniesdonotunderstandAMtechnologyoritscapabilities,andmostdonothavestaffsufficientlytrainedtoimplementprocesses.

• Concernsexistabouttheintegrityofprintedpartsandmaterials.• Betterdesignofferingsareneededtoexpandunderstandingofhowto

optimizetheAMprocess.• Moreregionalsupportforentrepreneurial,commercializationand

investmentopportunitiesisnecessary.3. EntrepreneurshipandCommercialization:EncouragingNewStart-Ups

• Betterandlowercostmaterials,bettermachinesandbetterdesigntoolsare

neededforbroaderAMadoption.• Morecasestudiesareneededtomaketheeconomiccasefordirectpart

productionandAMaspartofthemanufacturingprocess.• MorecollaborationisneededbetweenlargebusinesseswithAMcapabilities

andsmallerbusinesseswithout,aswellasbetweenuniversitiesandbusinesses.


KEYVOCHIGHLIGHTSUMMARIES

Summary:CurrentAMApplicationsamongRegionalCompanies

• PrototypingwasclearlythemostcommonAMapplication.Usecasesspannedmultiplepartsofthesupplychain.Forexample,processorswhoroutinelyuseFDMandSLAsaidtheywereabletomovemorequicklytoproductionbecausetheturnaroundtimeforreceivingfeedbackandgainingcustomerapprovalwasreduced.Likewise,OEMsanddesignfirmshavebroadlyadopteddesktopprintersorFDMmachinesasanengineeringprototypetoolforinternaldesigndevelopmentandasamarketingtooltopresentnewproductconceptstocustomers.LargerOEMssometimeshaveseveralFDMmachinesavailableforthispurpose,whilesmallermanufacturersrelyonlowergradedesktopprinters.Regardless,allcompaniesthatwereinterviewedandthatareengaginginAMwerepositiveaboutaccelerateddesigncycles,relativelyshortROI,andresultingnewbusinesswins.

Summary:BarrierstoAMAdoptionamongRegionalCompanies

• Mostregionalmanufacturersarenarrowlyfocusedonproductionandcostmargins.Theyworkwithinmatureindustriesthathaveaverylowriskthresholdforinnovation.

• Companyleadershipdoesnotalwayssupportinnovation,andtheyarenotmotivatedtoinnovateuntiltheyknowthatacompetitorhassuccessfullyimplementedanewtechnology.Inthatcase,thecompanyleadershipismorewillingtoinvesttimeandefforttoremaincompetitive.

• Anotherbarriertoadoptionisprocessfailure.Whenemployeeswithlimited3DPexperienceareinvolvedinaproject,theyoftenbecomeearlydetractorsifoneormoretrialprocessesfail.Thishesitancyistypicallyaresultofverylimitedpastexperienceandunfamiliaritywithcurrentbestpractices.

Summary:EnhancingAppealofAMAdoptionamongRegionalCompanies

• Notsurprisingly,themajorityofcompaniescouldbepersuadedtoengageinAMinnovationiftheysawevidenceoftheeffectivenessofAMstrategiesandiftheywereconfidentthatthesestrategiescouldbesuccessfullyandcost-effectivelyincorporatedintotheirownproductionprocesses.


AMBUSINESSUSECASESVII.BUSINESSUSECASES

CaseStudy:ExtrudedVinylWeldingFixture

Vinylwindowsaretypicallyfabricatedfromthermallyweldedsectionsofvinylextrusions.Theappealofthisprocessisthattheextrusionsareverycosteffectivetoproduceandcanbecuttoanylengthtoallowformanufacturingwindowframesofanysize.Differentextrusionprofilescanaccommodatedifferentstylesandthicknessesofwindows.Inaparticularapplication,amanufacturerdevelopedanextrusionprofileforanewstyleofwindow.Becauseofacombinationoffactors,thedesignhasturnedouttobedifficulttomanufacturereliably.Thermalstressescausetheextrusionstowarpandtheyaredifficulttoalignconsistentlyduringtheweldingprocess.

Thecurrentprocessreliesuponpoorlyfittedwoodenfixturestoalignframecomponentsduringtheweldingprocess.Hardwarestorespringclampsareusedtoaligntheprofilesinthevicinityoftheweld.Thisprocessistime-consumingandunreliable.Overthepastseveralyears,falloutfromtheprocesshasbeenashighas90percent(only10percentofproducedassemblieswereacceptableforsale).Throughimprovementstotheextrusionprocess,thefalloutratehasbeenreducedtoaround70percent.However,withpropertooling,falloutshouldbelessthan10percent.Thecostofweldingfixturesforsimpleextrusionsisapproximately$5,000.Inthiscase,becauseofthecomplexityofthecontours,thecostmaybeexpectedtobesignificantlymore.Traditionaltoolingdoesnotincludespecializedclampinginthevicinityoftheweldsuchaswouldberequiredforthisapplication.Thenecessarytoolingforthisapplicationcouldbemanufacturedfromlow-costpolymericprintingtechniques.Theexpectedsavingswouldbemorethan$4,000incapitaltoolingcosts,anexpected60percentreductioninscraprate.

CaseStudy:BlowMoldingTooling

Aregionaltoolanddieshophasacontracttoproduceblowmoldingtoolingforsmallpolypropylene(PP)bottles.Thefixedpricecontracthasinvolvedmultipledesigniterations,eachchippingawayattheprofitabilityofthejob.Newdesignsaremanufacturedatacostofapproximately$600-$800each.Ifadopted,multiplemoldscanbeproducedfor$200-300each.BecauseofthelowtemperaturesandforcesinvolvedintheblowmoldingprocessforPP,direct-printtoolingoptionsmaybeavailable.Theseoptionswouldallowforsignificantdesignflexibility,fasterturnaround,andanew,highlymarketableserviceofferingforthetoolanddieshop.


CaseStudy:ToolandDieShop,PartVisualization

Complexmechanicaldrawingscanbechallengingtoread,evenforveryexperiencedmachinists.Amisinterpretationofadrawingcaneasilyresultinhoursofvaluableembeddedworkbeingruinedasacomponentisincorrectlymachined.Aregionaltoolanddieshophasmitigatedthisriskbyprovidingitsmachinistswithphysical,3-dimensionalrepresentationsofthefinishedcomponenttoaidincorrectinterpretationofthedrawings.Whileitisdifficulttocapturethecostofaccidentsthatmayhavebeenpreventedbythisstrategy,thefewdollarsofcostassociatedwithprintingthesemodelsonalow-cost3Dprinteraretrivialcomparedtothepotentialcostsofruiningajobthatmaybeworthtensofthousandsofdollars.

CaseStudy:AssemblyandInspectionFixturesforHydraulicPumps

Inspectionandservicingofindustrialhydraulicpumpsrequiresunit-specificassemblyaidsandinspectionfixtures.Thesetoolscanbeextremelyexpensive,sometimesasmuchas$30,000perset,andareuniquetoaspecificpumporfamilyofpumps.Thetolerancesformanyofthesefixturesaresurprisinglygenerous,oftenontheorderof0.040”andwellwithinthedimensionaltolerancesachievablewithawidevarietyof3Dprintingtechnologies.Usingsuchtechniques,itisreasonabletoexpectthatproductionofthesetoolsmaybepossibleatafractionofthecurrentcost.

CaseStudy:LaserCuttingTooling

Complexmetalstampingoperationsoftenrequiresubsequenttrimmingoftheexcessmetalfromtheedgesofthepart.Inveryhighvolumeproduction,thistrimmingoperationisoftenperformedbyexpensivetrimmingdies.Inlowervolumeproduction,thecapitalequipmentcostsmaybereducedbyusingmulti-axiscuttinglasers.Inasimilaroperation,lasersmayalsobeusedtoweldtwoormorecomponentstogether.Insuchsetups,thecomplexcontoursofthecomponentsarepreciselylocatedbyfixturingtooling.AnortheastOhiostampingcompanycurrentlybuyssuchfixturesmachinedfromacombinationofwoodandmetal.Atypicalcostforthesefixtureswasestimatedat$6,000.3Dprintedtoolingtoachievethisfunctioncouldbemanufacturedatanestimatedcostof$1,000,an80percentcostsavings.

CaseStudy:OutofProductionParts

Aregionalhydraulicpumpmanufacturerreceivesfrequentrequestsforrepairpartsforhistoricalhydraulicpumps.Thesecomponentshaveoftenbeenoutofproductionfordecadeswithnodocumentationavailable.Thecustomersarenotinterestedinreplacingthepumpwithoneofsimilarperformance.Thevalueoftheapplicationliesinthehistoricalaccuracy,somethingforwhichthecustomeriswillingtopayaconsiderablepremium.Themanufacturerdoesnotpresentlyhaveagoodwaytoservethismarket.However,throughtheuseof3Dscanningandseveralverycosteffectivetechniquesforcreatingcastingsfrom3Dprintedtooling,thisisanunservedmarketthatthemanufacturermaybeabletocapture.


CaseStudy:LowVolumeCompressionMolding

Compressionmoldedthermosetpolymersareusedinavarietyofhigh-strengthpolymerapplications.Aregionalmanufactureroftheseproductsisfrequentlyapproachedtoquotecomponentsinlowproductionvolumes.Partsareordinarilymadeinsteeloraluminummolds.Toreducecapitalcosts,prototypeandlowproductionvolumepartsmaybemadeinsingle-cavitymolds.Multi-cavitymoldsaretypicallyusedforhigherproductionvolumes.Thecostofsuchatoolistypically$50k-$100k,whichisprohibitiveforsmallvolumeapplications.Forexample,inonecasethecostoftoolingandproductionwasquotedat$180kfora400partrun.Theprocessinvolvesrelativelyhightemperaturesontheorderof250-300degreesFahrenheit.However,thistemperaturerangeisintheapproximaterangeofsomecommerciallyavailable3Dprintedmaterialsandsomethatarecurrentlyunderdevelopment.Foreseeableapplicationsof3Dprintedtoolshavethepotentialtoreducetoolingcostsinthiscaseby90percentormore,therebyincreasingthepotentialcustomerbaseandincreasingthecompetitivenessofdomestictoolingsuppliersascomparedtooffshoretoolproduction.

CaseStudy:MoldRedesignAssistedby3DPrinting

Thethermoformingmanufacturermadeaninnovativeefforttouse3Dprintingtosolveamanufacturingdefect.Flowpathsaroundaprotrudinginsertwithinanexistingtoolwereleadingtoacosmetic“knitline”defectonthesurfaceofanaestheticallycriticalcomponent.Themetallicinsertscost$5k-$10ktomanufactureandhadsignificantleadtimes.Engineersattemptedtoexploreavarietyofinnovativesolutionstotheproblemusing$500FDMprintedinsertsthatwereinfiltratedwithapolymerresin.Thiseffortwasassistedbyanemployeeonstaffwhohasspecializedknowledgeof3Dprinting.

Hadtheeffortbeensuccessful,itwouldhaveallowedthemanufacturertodemonstratetheabilitytouseprintedtoolingforbothcostsavingsandinnovativeprocessdesign.Unfortunately,thetoolingstucktotheresinandbrokeduringde-molding.Whilethismanufacturerwason-tracktomakingasignificantleapforwardinmanufacturingprocesses,thefailureoftheprocessrevealedseveralchallengestoadoptingthesenewmethodologies.First,mostmanufacturersarenarrowlyfocusedonproductionandcostmargins.Theyworkinmatureindustriesandhaveaverylowriskthresholdforinnovation.Theengineerswhoattemptedthisinnovationwerechastisedforthetimetheyspentonthisideaandweretoldthattheyshouldnotinvestfurthereffortinthisapproach.However,theyadmittedthatiftheyknewthattheapproachwasbeingsuccessfullyimplementedbyacompetitor,theywouldinvestsignificanteffortandtimetoensurethattheyremainedcompetitive.Thesecondchallengewasthatthestaffengineerwhocamefroma3Dprintingbackgroundwasoneoftheprincipaldetractorsoftheeffort.Withinthecompany,heistheresidentexperton3Dprinting.Becausehisscopeofexpertiseislimited,theperspectiveshepresentedtomanagementarenotreflectiveofcurrentandemergingbestpracticesfor3Dprinting.


Thiscaseservesasanexampleofboththetremendouspotentialfor3Dprintedtoolingapplicationsandsomeoftheunexpectedsourcesofresistancetoexplorationofthetechnology.Themostimpactfulmotivatorforcompaniestoinnovatewillbeacombinationofdemonstratingtheeffectivenessofthesestrategiesandassistingcompaniestoincorporatethestrategiesintotheirownproductionprocesses.

CaseStudy:3DPrintedCenterlessTurningTooling

Aregionalmanufacturerofhigh-precisionpower-transmissioncomponentsusesacenterlessgrindingtechniquetomanufacturethe“shoes”usedtosupportthesurfacethatisbeingground.Ordinarily,theseshoesaremanufacturedfromhighstrengthceramicormetalthatispreciselygroundtomatchthecontouroftheproductionpart.AspartofaninternalR&Deffort,themanufacturerhasexploredtheuseof3Dprintingasanalternativeprocessformanufacturingthesecomponents.Preliminaryresultshaveshownthattheyareabletoproducethesecomponentsatafractionofthepriceofthetraditionalprocesswhileachievingbetterperformanceintheapplication.Asaresult,theconsumableshoesthathadpreviouslybeenimportedfromChinaarenowbeingexportedfromtheUnitedStatestoproductionlocationsaroundtheworldincludingChina.

CaseStudy:FDMPrintedMoldInsert

AspartofasmallprojectthatwasfundedthroughtheUniversityofDayton,aregionalinjectionmoldingcompanyexploredtheuseofFDMprintedinsertsforlowvolumeproduction.ThemoldinsertswereprintedinABSandwereusedtomoldacliptoholdametalcageonaHobartmixer.Severalhundredpartsweresuccessfullymoldedinpolypropylene.Themoldingmaterialwasthenswitchedtoaglass-filledPP.Thehighlyabrasivefilledpolymerdestroyedthetooling,butonlyafter17-18partsweresuccessfullymolded.Thecostofthetoolingwasinsignificantatafewhundreddollarscomparedtothe$20k-$50kthatmightbeexpectedforacomparabletoolinaluminum.

CaseStudy:Prototyping/DesignEnhancementandValidation

Aplasticinjectionmoldingcompanyisfollowingthedevelopmentofthetechnology,butcurrently,theirproductionvolumeistoohighforsuccessfulintegrationintotheirtoolingdevelopment.However,theleadershiprecognizesthelongtermvalueofthetechnologyandhaspersonallylearnedhowtodesignandprintinordertobetterunderstandthefutureapplicationsandopportunities.Currently,thecompanyprintsscalemodelsofproductsforcustomerstovalidatebeforebeginningthetoolingprocess.Byusinganiterativeprocesswiththecustomer,theyhavebeenabletogetbetterdesignsforproductsandmoreaccuratetoolingforproduction.

CaseStudy:TireMoldInserts


Ametalfabricationcompanyhadtraditionallymadealuminumtoolingfortireproduction.Astreaddesignsbecamemorecomplex,theyweremadeawarethataGermancompanyhadinvestedinmetalAMtomake“sipes”,smallcomplexsteelinsertspinnedintothealuminumtool.ThelocalmanufacturerinvestedinametalmachineafewyearsagoandnowhastwoAMmachines,supplyingtheseinsertstotiremanufacturersaroundtheglobe.

CaseStudy:MedicalImplants

ACleveland-basedstart-upmanufacturescranio-facialimplantsfromPolyetherketoneketone(PEKK),high-densitypolyethylene(HDPE)andotherpowderedplasticsusingSLS.Thisisagoodexampleofpatient-specificimplants,wheretheprintedpartisbuilttomatchscansofthepatient.TheproximitytoClevelandClinicmadedevelopmentofthisbusinesseasierduetolocalopportunitiestosupportsuchsurgeriesatCCF.

CaseStudy:MedicalDeviceManufacture

Inasimilarinstanceasabove,alocalmanufacturerusesFDMtobuildmedicaldevicehousingsforlowvolumeapplications.Theeconomicsworkfortheselowvolume(lessthanafewhundredparts),highmarginproducts.CostsincludenotonlyAMbutmanyfinishingstepsincludingpainting,butstillislowercostthanbuildingaproductiontool.

CaseStudy:Prototyping

Usecasesforprototypingspanmultiplepartsofthesupplychainandwerethemostcommonapplicationsidentified.ProcessorsuseFDMorSLAroutinelyasatooltodemonstrateprototypedesignstocustomers.Thisenableseasierfeedbackandearlieracceptanceofdesignconcepts,allowingtheprocessortomoveforwardwithtoolapprovalandproduction.Similarly,OEMsanddesignfirmshavebroadlyadopteddesktopprintersorFDMmachinesasanengineeringprototypetoolforinternaldesigndevelopmentandasamarketingtooltopresentnewproductconceptstocustomers.LargerOEMssometimeshaveseveralFDMmachinesforthisuse.Smallermanufacturersmayhaveasinglelowlevelengineeringgradedesktopprinter.Allseemedverysatisfiedwiththereturnonthisinvestmentbothasitacceleratesthedesigncycleandincreasesnewbusinesswins.


OutcomesandRecommendationsVII. OUTCOMESANDRECOMMENDATIONS

ThenortheastOhioregionisideallysuitedtobecomeanationalleaderinadditivemanufacturing.Thereisanunusuallyhighconcentrationofuniversitiestrainingdesigntalent,ahistoricallystrongmanufacturingbaseofindustryandworkforce,world-classmaterialsandbiomedicalassets,andagrowingpresenceofinnovatorsandinnovationserviceproviders.TherespectivestrengthsandweaknessesofthenortheastOhioAMclusterareanalyzedinthegraphicbelow:

Drawingonthestrengthsidentifiedintheassetsinventoryandbuildinguponexistingregionalprograms,theAssetMapteamarticulatedavisionforproliferationofAMinnortheastOhio.

A. Vision

By2023,NortheastOhiowillberecognizedasaleaderin:

• designandengineeringforadditivemanufacturing

• theuseofadditivemanufacturingforproductivityenhancements

• AMentrepreneurialinvestmentandgrowth

• AMmaterialsinnovation

Strengths:Universiveswithstrongfocusongrowing3DPdesignersMfgsupplybaseinplasvc&metalfabricavonwithstrongworkforcePresenceofAmericaMakesGrowingentrepreneurnetworkinAMStrongbiomedicalresearchcommunityWorldclasspolymermaterialsassets

Weaknesses:Lackofsowware/IPtalentinivavvesLimitedventurefundingLimitedknowledgebaseinmfgcommunityNomajorAMmachinecompaniesinregionNotenoughOEMdesigncenters

Opportunives:BexerintegravonwithAmericaMakestoinjectIPandprovidedevelopmentresourcesSupportuseofAMasproducvvitytooltoenablereshoreandcomepvvveadvantageforsupplybaseRetain/axractdesigntalent

Threats:OtherstatesmoreproacvveinaxracvngdirectinvestmentDesigncenterslocavngelsewhereinmidwestClosedsystemsinhibitparvcipavonbymaterialssectorLossofdesign/engineeringtalenttootherregions

NEOhioPosivoninAddivve

Manufacturing


• theattractionofdirectinvestmentrelatedtothecoreactivitiesofAmericaMakes

B. Goals

Torealizethisvision,theteamhasdefinedfivekeygoalsfortheregion.

1. TheformationofaregionalinnovationclusterthatreliesheavilyonfocusedengagementwithAmericaMakesandthatestablishesnortheastOhioasthenexusofAMintheMidwest.

2. DriveexpandedapplicationsofAMfortooling,fixtures,andenhancedmanufacturingproductivitybymakinginvestmentsintechnicalsupport,capitalequipment,workforcedevelopment,andindustry-basededucationalprograms.

3. UseformaleducationandworkforcetraininginitiativestoboosttheadoptionofAM,andplaceastrongemphasisonthedevelopmentandretentionofdesignandengineeringtalent.

4. Buildoutsupplychainstrengthinthekeymarketverticalsoftheautomotive,biomedicalandaerospaceindustries,includinganattractionstrategyforkeygapsintheexistingsupplychains.

5. EstablishaframeworkthatwillfosterentrepreneurshipandcommercializationofAMsupplychaintechnologies,aswellasthenortheastOhio“maker”community.

C. ImplementationStrategies

Goal#1:TheformationofaregionalinnovationclusterthatreliesheavilyonfocusedengagementwithAmericaMakesandthatestablishesnortheastOhioasthenexusofAMintheMidwest.

ACTION#1:Engagewithstate,federalandlocalresourcestosupportanortheastOhio-basedAMcluster:

(InitiatingWithinYears1-2:Short-TermStart)

• 1.1.A)EstablishanortheastOhio-basedAMinnovationcluster,buildingfromassetsidentifiedinthisstudy

• 1.1.B)IncreaseregionalparticipationinAmericaMakesthroughprogramsthatwilloffsetcostsforOhio-basedbusinessesorprovideothermeansofdirectsupportforOhio-basedoperations.


• 1.1.C)Developastate-sponsoredcollaborationwithAmericaMakesthattargetsretentionandattractionofAMdesigncentersforindustrialleaderslikeCaterpillar,ParkerandEaton.

• 1.1.D)IncreaseopportunitieswithintheOTFforequipmentfunding,training,technologytransition,commercialization,entrepreneurshipandotherneeds.

• 1.1.E)ExpandtheFederalResearchNetworkoftheOhioFederalandMilitaryJobsCommissiontoincludeafocusonAMandAmericaMakes.

(InitiatingWithinYears3-4:Mid-TermStart)

• 1.1.F)EstablishanOhio-basedclusterforAMactivitieswithregionalnodes.• 1.1.G)Establishclustermembershipmodeltosupplementgrant-basedcluster

financing.• 1.1.H)Initiateactivitiesthatwillincreasebusinessvisibilityandexpand

opportunitiesforAMOEMs,materialscompanies,andsoftwarecompanieswithintheJobsOhionetworkanditspartnerorganizations.

• 1.1.I)Providematchingfundsforvariousfederalprogramstosupportclusterdevelopment,including:U.S.DepartmentofCommerce'spilotprogramentitled“OneCommerce,"whichisintendedtoestablisheconomicdevelopmentsupportforinstitutesthatarepartoftheNationalNetworkforManufacturingInnovation(NNMI).

o SBIRandSTTRprogramsusedtosupportR&Dandadvancetheindustry’stechnicalcapabilities

o AmericaMakesprojectopportunitiestoadvancetechnology,conductworkforcedevelopmentactivities,promotecommercializationandmore

ACTION#2:LeverageAmericaMakes’technicalexpertise,network,professionalrelationships,supplychainaccess,brandingandotherassetsinordertooptimizetheireconomicimpactontheregion.

(Effortiscurrentlyhappening“Year0”:ImmediateStart)

• 1.2.A)Createacommercializationmodelforstartupsand“scale-ups”.• 1.2.B)Establishnewworkingrelationshipsandpartnershipswitheconomic

developmentorganizations,universitiesandotherregionalAMresources.• 1.2.C)ServeasaconvenerofTBEDsandotherstateandregionalassetsto

createasteeringcommitteeforshapingfutureclusterdevelopment.• 1.2.D)EstablishalowcostaffiliatewithAmericaMakes(comparabletoMEP

models)thatwouldsupportclusteractivities,provideinformationand


assistancetocompaniesregardingtechnologytransitionopportunitiesinTechnologyReadinessLevels(TRL)7-10,andserveasaconduittofullmembershipinAmericaMakes.

• 1.2.E)SupportthedevelopmentofAM-focusedindustrygroups.

(InitiatinginYear1-2:Short-TermStart)

• 1.2.F)Actasaninfluencerbyservingasaconnector,networkingorganizationandgeneralresourcetohelpdevelopmarkets,refinetechnology,securebusinessandprovidetechnicaladvice.

• 1.2.G)BuildtechnologytransferprogramsrelativetoAMthatwillextendbeyondAmericaMakes'IPtoincludeotherresearchinstitutions.

• 1.2.H)CreatemechanismstobuildAMcapacitywithinOEMssupplychain.• 1.2.I)Leadprioritizationeffortsofcommontechnicalandworkforceneedsto

ensurethatpublicandprivateinvestmentsaredirectedtoappropriateclusteractivities.

• 1.2.J)EstablishprogramsthatwillgenerateincreasedutilizationoftheInnovationFactoryforindustry-relatededucationandtraining.

(InitiatinginYear3-4:Mid-TermStart)

• 1.2.K)EstablishprotocolstoengagesubjectmatterexpertstoreviewAmericaMakes’IPforcommercialreadinessandthenidentifycommercialpartnerstotaketheproductstomarket.

• 1.2.L)ParticipateintheAmericaMakes’roadmappingandotherprocessesthatdeterminefundingpriorities,aswellasthoseofotherorganizations,(e.g.AirForceResearchLab)toinfluencetopicselectionsincludedinSBIR/STTRBroadAreaAnnouncements).

• 1.2.M)Aggregatecontentandfacilitatesharingofdatafrompartnerstofosterbetterdecision-makingandbusinessusecasemodelsforAM.

(InitiatingWithinYears5-7:Longer-TermStart)

• 1.2.N)CreatemechanismstosharefoundationalIPthatwillbroadlyadvancetechnologywithoutimpingingupontheindividualcommercialopportunities.

ACTION#3:LeveragetherelationshipsandinfrastructureoftheTechBeltregiontomoreeffectivelycompetewithotherregionsintermsoftalent,companyattractionandcommercializationefforts.



• 1.3.A)MaintainongoingdialoguewiththeSouthwestPennsylvaniaAMclusterregardingbestpractices,benchmarkingandothersharedresources.

• 1.3.B)MaximizeresourcesandvalueoftheMEPnetworkinAMactivitiesthroughouttheregion.


• 1.3.C)Establisharegionalmarketingpresenceatthe2017RAPIDConference.


• 1.3.D)OpenadialoguewithkeyTechnologyBasedEconomicDevelopmentOrganizationsinMichigantogainaccesstoEuropeanAMmachinetransplantsandtheautomotivemarket.

• 1.3.E)IdentifyprojectopportunitiesforregionalsupplychaincollaborationswithTechBeltOEMs&Tier1suppliers.


• 1.3.F)Developmulti-stateproposalstogarnerfederalsupportforAMclusterbuildingactivities

Goal#2:DriveexpandedapplicationsofAMfortooling,fixturesandenhancedmanufacturingproductivitybymakinginvestmentsintechnicalsupport,capitalequipment,workforcedevelopmentandindustry-basededucationalprograms.

ACTION#1:Establishandscaleprogramstosupporttheintegrationofadditivemanufacturingtechnologiesintotheexistingmanufacturingbaseinordertoincreasetheirglobalcompetitiveness.


• 2.1.A.)FullyscaletheAdvancedToolingAccelerationProgram(ATAP),apartnershipbetweenYBI,YSU,andMagnet,topromotetheintegrationofAMfortoolinginnortheastOhiosmallandmediumenterprises(SMEs).

• 2.1.B.)SecurefundingtodeployAMandenablingtechnologiesonabroadscalewithinthenortheastOhiomanufacturingbase.

• 2.1.C)EstablishadatabaseofAMserviceproviders,processesandequipmentintheregion.



• 2.1.D)BuilduponhybridmanufacturingexpertisethatiscurrentlybeingdevelopedwithinYBI’sPrecisionPrintedPartsNetworkinordertofurtherintegrateAMandtraditionalmanufacturingprocesses.

• 2.1.E)Developoutreachcampaigntoregionalmanufacturerstoencourageclusterparticipation.

• 2.1.F)Hosteventsandmeetingstoencouragedeeperunderstandingofthetechnology.

• 2.1.G)LeverageworkstatewidethroughMEPs,JobsOhio,andEntrepreneurialSignatureProgram(ESP)programsasameansofexpandingtheeconomicusecasesanddisseminatinginformationoncurrentindustrialAMapplications.

• 2.1.H)CreatemarketingcampaignsthroughCleveland+topositiontheregionasaleaderinuseofAMtoenhanceproductivity.

• 2.1.I)Establishformallinkagesbetweenexistingregionalassetsincludinguniversities,incubatorsandserviceproviderswiththegoalofcreatingasharedresourceandencouragingtheformationofanecosystemthatincludesmechanicaltesting,materialsformulation,mechanicaldesign,prototyping,fabrication,andpost-processing.

• 2.1.J)CreateprofessionaldevelopmentandmarketingmaterialstopositioneconomicdevelopmentprofessionalstoconductoutreachwithintheindustryregardingthecompetitiveadvantagesassociatedwithAM.


• 2.1.K)Developcorecompetencyinreverseengineeringtechniquesandlegalissuesrelatedtothesubject.

• 2.1.L)MarketregionalAMleadershipatnationalandinternationalmanufacturingeventssuchasIMTSandHannoverMesse.


• 2.1.M)Createtechnicalresourceswithinuniversities,chambersofcommerceandtechbasedeconomicdevelopmentorganizationstohelpcompaniessuccessfullyapplyAMintheirproductionprocesses.

• 2.1.N)Establishafacilityand/ortechnicalresourcetoprovideindependentthirdpartyevaluationofprintersandmaterialstoreducetheriskassociatedwithcapitalinvestments.

Goal#3:UseformaleducationandworkforcetraininginitiativestoboosttheadoptionofAMandplaceastrongemphasisonthedevelopmentandretentionofdesignandengineeringtalent.


ACTION#1:SupportthegrowthofAMworkforcetrainingandthedevelopmentanddisseminationofnationallyrecognizedcredentialsforAMprofessionals.


• 3.1.A)TrainincumbentmanufacturingprofessionalsatalllevelstounderstandAMprocessesandthewaysinwhichthistechnologywillchangecurrenttechnologiesandbusinessmodels.

• 3.1.B)ParticipateintheeffortsofstandardsdevelopmentbodiesandeducationalinstitutionstoadvancethedevelopmentofstandardizedAMcredentialsandrobusttrainingopportunitiesthataddressindustryneedsandopportunities.


• 3.1.C)Identifyavailablecurriculathatwillbestsupportworkforcedevelopment,includingtechniciantraining,certificationprograms,degreeprograms,andC-leveltraining.

• 3.1.D)Encouragepublicawarenessandpositivemediasupporttoadvancethedevelopmentandimplementationofworkforcetrainingandeducationalprograms.

• 3.1.E)WorkwithStateofOhioWorkforcePolicyBoardtoestablishcommoncurriculaandlearninggoalsforAM-relatedtrainingactivities.

ACTION#2:ExpandinclusionofrelevantAMcontentwithinK-12andpost-secondarydegreeprogramcurricula.


• 3.2.A)FosterthedevelopmentofcollegecurriculathatintegrateAMintobothundergraduateandgraduateprogramsacrossarangeofdisciplinesthatextendsbeyondengineeringandthesciences.


• 3.2.B)ProvidetrainingopportunitiesforeducatorstobecomefamiliarwiththecurrentstateofAM,fundamentalsofAMdesignforAM,andbestpracticesofAMinrelationtotraditionalmanufacturingprocesses.

• 3.2.C)EstablishaformalrelationshipbetweenAmericaMakes,YSU,YBIandotherregionaltraininginstitutestocreateseamlessdeliverysystemsandavoidduplicationofservices.

• 3.2.D)Developandproliferateundergraduatecurriculathatemphasizepractical,real-worldapplicationsofAM,potentiallycoveringthespectrum


fromthemakerviewofdesktop3DPthroughcommercialapplicationsofindustrialgradeprinting.


• 3.2.E)ProvideindustryengagementopportunitiesforstudentsandfacultytoencourageawarenessofindustryneedsandculturetoensurethatAMclassroomactivitiesalignwithrealworldapplications.

Goal#4:Buildoutsupplychainstrengthinthekeymarketverticalsoftheautomotive,biomedicalandaerospaceindustries,includinganattractionstrategyforkeygapsintheexistingsupplychains.

Materials

ACTION#1:EstablishprogramsthatwilldrivematerialsR&DandadvanceindustrialapplicationsandlowercoststructuresforAM.


• 4.1.A)Linkmaterialscompaniestoemergingopensourceprintermanufacturers,suchasHPandCarbon.

• 4.1.B)WorkwithAmericaMakestoleverageitsrelationshipswithOEMstosupporttheintegrationofnewmaterialsintothesupplychain.


• 4.1.C)ConductadditionalVOCcallsandcustomersurveystodeterminethemostcriticalmaterialsneedsforindustrialapplications.

• 4.1.D)Providemarketdevelopmentsupporttolinkregionalfilamentmanufacturerstoopensourceprintersandcaptiveusers.

• 4.1.E)BuildtiestothemetalpowdermanufacturingbaseintheTechBeltregion.


• 4.1.F)Createamarketingcampaigntoraiseawarenessofregionalsuppliers.• 4.1.G)ProvidesupportforthesubmissionofSBIRandSTTRproposalsontopics

thatwouldresultincommerciallyviablematerialsprojects.LeveragetherelationshipsthatAmericaMakesanditsmembershaveonafederalleveltohaverelatedtopicsincludedinSBIR/STTRBroadAreaAnnouncements.


Biomedical

ACTION#2:Workwiththeexistingclusterorganization,BioEnterprise,tostrengthentheirknowledgeofAMandsupportcollaborationswhereappropriate:


• 4.2.A)InitiateaseriesofcommunicationforumstoinformBio-EteamofAMopportunitiesinbiomedical.

• 4.2.B)Hostinformationalandnetworkingmeetings,publisharticlesandconductotheroutreachtoraiseawarenessoftheopportunitiesforAMwithinbiomedical.


• 4.2.C)Linklargeregionalbiomedicalcompaniestoregionalsupplychainassets.• 4.2.D)Linktheexistingregionalsupplychaininpartsproductiontoresearch

assetsatCCF,UHandtheVAhospitalstohelpcreateabroadermaterialspalettethatisneededformedicalimplantsandpre-surgicalmodels.

• 4.2.E)WorkwithregionalresearchersatUA,CWRUandCCItoidentifyfundingsourcestoestablishstartupsorcreatespin-outsfortheirwork,andprovideamechanismforincubatingtheseinnovationsthroughclusterresources.


• 4.2.F)Conductattractionprogramsforcompaniesandresearchassetsrelatingtotissueengineering.

• 4.2.G)SupportstartupsandspinoutsfromCCIrelatingtotissueengineering

AerospaceandDefense

ACTION#3:LeveragestatewideresourcesinaerospaceanddefensetocreateAMfocusedattractionandexpansionmechanisms.


• 4.3.A)SupporttherolloutofYSU/YBI’sMaturationofAdditiveforLowCostSustainment(MAMLCS)toengageofOhiomanufacturersintheOEMsupplychainthroughthestrategicuseofAM.


• 4.3.B)EstablishprogramstoleverageAmericaMakes’relationshipswithOEMstofacilitatesupplychaindevelopment.


• 4.3.C)UseAmericaMakesrelationshipstofacilitatemoreeffectiveVOCwithexistingregionalTier1s.

• 4.3.D)PartnerwithJobsOhioandTeamNEOtocreateafocusontheattractionofdevelopmentandproductioncentersforOEMsorTier1suppliers.


• 4.3.E)PartnerwithOhioAerospaceInstitute(OIA),UniversityofDaytonResearchInstitute(UDRI)andtheAirForceResearchLabs(AFRL),toprobefortoolingandotherapplicationsspecifictoaerospacesupplychainparticipants.

• 4.3.F)IdentifyandsupporttheuseofAMbyregionalTier1s.• 4.3.G)LinkregionalsupplychaintoaerospaceOEMs.

Automotive

ACTION#4:IdentifyAMneedsanddriversintheautomotiveindustryandlinkthemtoacoremanufacturingproductivitystrategy.


• 4.4.A)PursuefurtherVOCactivitieswithautomotiveOEMsandTier1suppliers,withashort--termfocusontheidentificationoftoolingandfixtureopportunities.


• 4.4.B)EstablishbroaderclusterlinkagestoautomotiveOEMsandTier1sandlinkthemtonortheastOhioservicebureausandprocessors.

• SurveyneedsofregionalOEMsandTier1sandlinktosupplychainassets.• 4.4.C)Asnew,fasterAMtechnologiesbecomeavailable,encourageadoption

fordirectpartsproduction.Forexample,CarbonwhoisalreadyinbetatestatTheTechnologyHouse,indicatesthattheyarealreadyindevelopmentofdirectpartsproductionatautomotiveTier1,Delphi.

• 4.4.D)LinktomarketsurveyeffortsbyotherNNMIIs;forexample,NextFlexisidentifyingneedsamongautomotiveandappliancemanufacturers.

Goal#5:EstablishaframeworkthatwillfosterentrepreneurshipandcommercializationofAMsupplychaintechnologies,aswellasthenortheastOhio“maker”community.

ACTION#1:EstablishaculturetosupporttechnologycommercializationandentrepreneurshipinAMtechnologies.



• 5.1.A)Conductstartupchallengesorbusinessattractionactivitiestoidentifynewsoftware,hardware,andmaterialssolutionsfortheAMindustry.LeverageAmericaMakes,JobsOhio,ESPandotherassetstobringvisibilityandsignificantprizepackagestotheeffort.

• 5.1.B)WorkwithstateagenciesandtheU.S.DepartmentofCommercetoalignresourcesandprogramstosupportentrepreneurshipandtechnologycommercializationinAM,withoutregardtothebusinessstage.


• 5.1.C)LeveragetherelationshipsofAmericaMakes,theJumpstartEntrepreneurialNetwork,YBI,andotherresourcestoestablishanetworkofangelinvestorsandventurecapitalorganizationswillingtosupportstartupsinthefield.

• 5.1.D)Establishprogramstopromotesuccessfulstateandfederalresearchgrantstodevelopnewintellectualproperty.


• 5.1.E)Support“MakerSpaces”andotherresourcesthroughouttheregiontoencouragethedevelopmentandcommercializationofbothhigh-techandlow-techproducts.

• 5.1.F)EstablishprotocolstoengageSMEstoreviewAmericaMakes’IPforcommercialreadinessandthenidentifycommercialpartnerstotaketheproductstomarket.


BIBLIOGRAPHYIX.BIBLIOGRAPHY

1. BCCResearch,GlobalMarketsfor3DPrinting.(2015,June15).

2. Berger,Roland,AdditiveManufacturing(AM)–OpportunitiesinaDigitizedProduction.(2015,June23).

3. DefenseEnergySystems,LLC.andAssimilogic,LLC.,MahoningValleyUnifiedRegionalAdditiveManufacturingStrategy.(2015.)

4. Gartner,HypeCyclefor3DPrinting.(2015,July27).

5. Gartner,MarketGuidefor3DPrintServiceBureaus.(2015,April16).

6. Gartner,Predicts2016:3DPrintingDisruptsHealthcareandManufacturing.(2015,Nov.23).

7. IDTechEx.3DPrinting2014-2015Technologies,Markets,Players.(2014.)

8. IDTechEx.Applicationsof3DPrinting.(2014.)

9. JanneyCapitalMarkets,TheLandscapeofAM.(2014,Sept.24).

10. Jeffries,3DPrintingOutlook:6Themesfor2016.(2016,January13).

11. Jeffries,FormNext3DPrintingTradeshow:MetalStrongerthanPlastic.(2015,Nov.23).

12. JobsOhio,TheNewFaceofManufacturing.(Accessed2015.)

13. ManufacturingAllianceforProductivityandInnovation,3DPrintingandRegionalManufacturingCompetitiveness:RockStarsof3DPrinting.(2015,March17).

14. McKinsey&Company,AdditiveManufacturingOverview–ReportforJobsOhio2014.(2014.)

15. NationalInstituteofStandards&Technology,CostandCostEffectivenessofAdditiveManufacturing.(December2014).

16. PiperJaffrey,NetworkingTechnologies,3DPrintingandRobotics.(2016,January8).

17. PriceWaterhouseCoopers,3DPrinting–ADoubleEdgedSword–HowCanBusinessesManageTheirRiskWhileSeizingtheOpportunity?(March2015.)

18. PriceWaterhouseCoopers.PrintingandtheNewShapeofEngineering.(2014,June).

19. StratasysQ32015FinancialResultsConferenceCallReport.(2015,November4).


20. Stratasys-Oppenheimer,Stratasys-OppenheimerCompanyUpdate.(2015,December).Retrieved2015.

21. USInternationalTradeCommission,AdditiveManufacturingTechnology:PotentialImplicationsforU.S.ManufacturingCompetitiveness,JournalofInternationalCommerceandEconomics.(2014,Sept).

22. Wohlers,WohlersReport2015:3DPrintingandAdditiveManufacturingStateoftheIndustry.(2015).


REFERENCEPAGE

INDUSTRYTERMSANDACRONYMSX.INDUSTRYTERMSANDACRONYMS

• 3DP:Three-DimensionalPrinting• AFRL:AirForceResearchLaboratory• AM:AdvancedManufacturing• AM4MC:AdvancedManufacturingForMetalCasting• CAGR:CompoundedAnnualGrowthRate• CAT:ComputerizedAxialTomography• DMLS:DirectMetalLaserSintering• FDM:FusedDepositionModeling• IDC:InternationalDataCorporation• IP:IntellectualProperty• MAMLCS:MaturationofAdvancedManufacturingforLowCostSustainment• MRI:MagneticResonanceImaging• OAI:OhioAerospaceInstitute• OEM:OriginalEquipmentManufacturer• OTF:OhioThirdFrontier• P3N:PrecisionPrintedPartsNetwork• PEKK:Polyetheretherketone• PP:Polypropylene• ROI:ReturnonInvestment• SLA:Stereolithography• SME:SmalltoMediumEnterprise(s)• TPU:ThermoplasticPolyurethane• TTH:TheTechnologyHouse• Tiers:Tier1companiesarethosesuppliercompaniesmostcriticaltoanOEM.Tier2

companiesarethosesuppliercompanieswhichserviceTier1companies.• UDRI:UniversityofDaytonResearchInstitute• UTORNL:UniversityofTennesseeOakRidgeNationalLaboratory


XI.APPENDIX:LISTOFAMASSETSINTHENORTHEASTOHIOREGION

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