A decade of eager but often failed investments suggests that the AM industry needs to redefine its core value proposition and build more sustainable solutions, writes new Shapeways CEO Marleen Vogelaar
In the last decade, the 3D printing industry has been on a journey marked by groundbreaking innovations, bold promises and sobering realities. Like many people, I’ve watched the euphoria of sky-high valuations and the subsequent reckonings when promises and unrealistic expectations met the demands of the real world.
At the peak of the hype cycle, 3D printing seemed almost fantastical: a world where mass customisation was the norm, supply chains were transformed overnight, and production was as simple as pressing a button. The topic of 3D printing was on every conference agenda, regularly appeared on mainstream TV and even made it into President Obama’s 2013 State of the Nation address. Investors, wooed by the possibilities, flocked to fund the future.
But unlike the digitally-focused ‘unicorns’ (those elusive privately owned startups that achieve a $1 billion valuation), manufacturing is in the business of creating real, tangible, physical products. That means supply chains, trained workforces, warehousing, big capex budgets, regulations, and so on. In short, it’s just not as easy to scale manufacturing as it is a SaaS model.
That didn’t stop management teams from trying, of course. But we often see companies ‘get ahead of their skis’ with the relentless push of investment. Eventually, the numbers can’t be massaged. Growth isn’t there and overheads become too large to carry, resulting in losses. At this point, investment vanishes, which in turn, makes it harder for companies to realise the genuine opportunities before them.
In Shapeways’ case, being a pioneering brand brought in early investment and early challenges. Being first to market in any given niche requires you to build the market as you go. There are no quick wins to be had by stealing market share from the competition. There is no competition, because there is no market! Building a market takes time, patience and money – not something for which eager investors have much patience.
A further challenge for 3D printing, seen directly within Shapeways, was the disconnect between the technologies’ abilities and long-standing consumer expectations.
For many, the fact that they can realise their digital designs in a physical way is enough, and these people quickly adopted 3D printing. Mass-market consumers, however, are not interested in the manufacturing process, and care only about the part. And the parts coming off 3D printers – even those designed for the process, processed by trained technicians and highly finished – often failed to meet their expectations.
AM – Choices and consequences
Unfortunately, our industry has learnt – and is still learning – what happens when visionary promises fail to align with market adoption, user expectation and investor demands. Bankruptcies, customer frustrations, and disillusionment have become part of the narrative.
It is worth remembering that the challenges facing the 3D printing industry are not unique. Every transformative technology goes through a cycle of hype, correction and maturation. The important thing, in terms of the future of this industry, is how companies respond.
As a brand, Shapeways has experienced these cycles first-hand, rapidly expanding in response to ever-increasing demand. When growth slowed and operating margins increased, Shapeways should have adjusted its overhead costs, but doubled down on them, investing in a new digital business model that was pleasing to its investors, but which failed to achieve the growth projections made for it.
It’s tempting to chase every headline, every next big thing, but longevity is rooted in staying true to your strengths
But as someone who has returned after a decade away, I can confidently say that the core of Shapeways – the heart of what made it special – has remained strong. That’s where resurrection begins.
For businesses in this industry, the key is to focus on the core value propositions, but be flexible in their application, providing value, serving real customer needs and building sustainable solutions. It’s tempting to chase every headline, every next big thing, but longevity is rooted in staying true to your strengths.
The market today is massively different to 2007/8. First, there is already an existing market. Second, technology has moved quickly and today’s consumers have access not only to vast libraries of ‘printables’, but also to the software they need to more easily realise their design in 3D.
Creators are driving massive consumer buying trends nowadays, and not just niche purchases. For the B2B business, adoption of 3D printing has been steady and the number of opportunities for smallto- medium sized 3D printed production runs has increased proportionally. People now ‘get it’, whether they are personal or business users.
By getting back to core values and capabilities, adapting to changing market realities and learning the lessons of the past, we can ensure the future of 3D printing proves to be just as transformative as we imagined.
About the author: 
Marleen Vogelaar is an original co-founder of Shapeways and part of the new management team that has bought the company out of bankruptcy.
She is a US-based Dutch serial entrepreneur with a passion for manufacturing, a keen eye on sustainability, and a wealth of knowledge and and expertise in on-demand manufacturing.
This article first appeared in DEVELOP3D Magazine
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