The urgent need to change AM’s marketing approach
The urgent need to change AM’s marketing approach
You might have noticed, but the old tricks don’t work anymore
Let’s start with the following statement:
Until recently, the marketing efforts of most leading AM companies focused on creating long-term development visions and securing funding from private investors. This is no longer possible — or at least extremely difficult compared to previous years.
Yes, when you started a company in the AM industry, the first step was to seek funding for its development. After all, it was a “new technology,” “the future of manufacturing,” “the next big thing.”
Subsequent funding rounds fueled growth. Abstract metrics increased. But it didn’t bring in money. I wrote about it extensively here:
So that’s over now. There’s no sign it will return anytime soon.
3D printing is burnt out.
When I created The Three Market Laws of Additive Manufacturing last year, describing the third law:
An increase in the value of the 3D printing market may or may not correspond to an increase in the value of the 3D printing companies that make up that market. Market value and company value are not correlated.
I felt this more than I knew it. The law was formulated at the end of 2023 — just before the great collapse and subsequent bankruptcies and acquisitions.
Today, the third law shines in full force (unfortunately… I’m really not happy about this). Stock prices are down 80–90%. Market valuations are far below the actual value of the companies.
The market valuation of China’s BLT and Farsoon is higher than the combined market valuations of all U.S. and European companies. BLT is worth more than three times as much as Stratasys and nearly five times (4.8) more than 3D Systems.
This is crazy…
No rational investor or stock market player will invest in an AM company unless it generates accounting profits.
The days of investing in “vision” and “bright future” are over.
So many people have lost so much money in 3D printing that there’s hardly anyone left who sees long-term value in this business. Everyone is hunting for gains to exit their investments.
The 3D printing industry is full of stock market hangmen. Shares of many companies have junk status.
If a company has so far relied solely on investment money, being cut off from it means only one thing:
the end
deep restructuring and attempts to profit at current sales levels
changing the approach to sales and increasing them.
Which brings us to the next point…
Current marketing methods need a revision
Fact:
The AM market is constantly growing. Therefore, it seemed logical that companies operating within it would grow as well.
If a company had an operating loss during a certain period, but its revenues were growing, it was assumed that they would grow in line with the market’s value.
In other words, an unprofitable company would sooner or later become profitable, right?
No. The matter has two dimensions:
According to the aforementioned third law of the AM market, market growth is not correlated with the growth of the companies that make it up.
And it’s not just the AM market that’s growing. Most markets are growing. Even if the growth rate is not as high percentage-wise, the absolute values are enormous — much larger than in AM.
That’s why this strategy turned out to be wrong, which is increasingly evident with each passing quarter.
As a result, marketing activities focused on presenting innovations reaching their actual peak in the long run are no longer effective. Simply put, customers for such visions are gone. They no longer exist.
The only customers left are the real, end-customers. And they expect immediate results — none of them will wait 5–10 years for a return on investment.
And this is where the so-called problems begin… If a 3D printer is complex enough to require months to get familiar with (machine operation + software + working with materials), convincing a customer to buy it will be extremely difficult.
Do you remember the second law of the AM market?
A successful company in the 3D printing industry will always be smaller and less profitable than a successful company in another industrial sector.
A corollary of this law is the question: when does a company buy a 3D printer, and why? And the answers are:
When they want to produce a part quickly and cheaply
The part is highly specific and difficult to produce due to its shape
Quality isn’t the top priority
The part is not very large
They don’t need many of them.
To summarize: fast, cheap, and unique — regardless of quality, small size, and produced in one or just a few pieces.
If these are the customer’s expectations, the 3D printer manufacturer or supplier cannot expect them to spend months learning how to use it!
What should AM advertising show?
If we know (and accept…) that AM technology is always the cheapest possible alternative to other manufacturing methods, then marketing communication must be based on the following pillars:
it’s cheaper than what you’re currently using
it’s easy to use: arrives → installs → turns on → works
from the moment you turn it on, you start producing parts cheaper.
And what about the fact that AM allows for any geometry? Or reduces the number of parts in an application (instead of nine — just one)?
Well, that’s just added value. Let’s not overemphasize it. It’s not like someone will suddenly start significantly overpaying for parts because of “unique geometry.” Geometry only matters when it’s accompanied by “cost and production time optimization.”
In summary…
running a company based only on investor money is no longer possible
trying to attract a new investor is very difficult and will most likely fail
the only chance for a company’s growth is its operational activities and profitable product or service sales
to achieve this, marketing communication must be directed at the end customer
the most important factors in AM are low cost + fast production time + significant geometry optimization potential.