Protolabs Rebrands Its Manufacturing Partner Network from Hubs to Protolabs Network
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Insights
The rebranding of Protolabs Network, formerly known as Hubs and its integration into the Protolabs platform represents a strategic move to streamline the customer experience and leverage economies of scale. By consolidating services under a unified brand, Protolabs aims to enhance its market position and offer a more cohesive range of services. This approach can potentially lead to increased customer retention and attract new clients seeking a one-stop-shop for their manufacturing needs.
From a market perspective, the move aligns with the broader trend of digital transformation within the manufacturing industry. Protolabs' hybrid model, which combines in-house digital factories with a global network of suppliers, is designed to offer flexibility and scalability to customers. This competitive edge could translate into an expanded customer base and increased market share, particularly as industries increasingly seek agile and cost-effective manufacturing solutions.
Furthermore, the reported 80 percent year-over-year revenue increase through Protolabs Network in the third quarter of 2023 underscores the substantial growth potential of this business model. The emphasis on a savvy customer base and a high-performing team suggests that Protolabs is well-positioned to capitalize on the growing demand for digital manufacturing solutions.
The significant annual growth of the Protolabs Network since its acquisition in 2021 and especially the 80 percent revenue increase in Q3 2023, indicates robust financial health and operational success. This growth trajectory is indicative of a successful integration and scaling of the acquired network, which could reflect positively on Protolabs' stock performance (NYSE: PRLB).
Investors should note the potential for improved margins due to the hybrid manufacturing model, which could lead to cost savings through more efficient supply chain management and production processes. Additionally, the expansion into higher-volume manufacturing at reduced costs may open up new markets and revenue streams for Protolabs, diversifying its income sources and possibly reducing the risk profile of the company's revenue model.
The strategic expansion of the Protolabs Network also has implications for long-term shareholder value, as it may lead to sustained revenue growth and improved competitive positioning. The ability to offer a comprehensive suite of services throughout a product's life cycle could become a key differentiator in the market, potentially leading to premium pricing opportunities and enhanced profitability.
The transition to a unified Protolabs Network represents a significant shift in the company's supply chain strategy. By leveraging a network of over 250 vetted supply partners, Protolabs is positioning itself to offer a more resilient and responsive supply chain. This is particularly relevant in an era where supply chain disruptions have become more frequent and impactful.
The ability to offer tighter tolerances, enhanced finishing options and higher volumes at lower costs indicates a strong focus on quality and efficiency. Such capabilities are critical in meeting the evolving demands of customers who require precision and customization in their manufacturing processes. The supply chain benefits from this model include increased agility, reduced lead times and potentially lower inventory costs, all of which contribute to a more competitive and robust business operation.
Moreover, the emphasis on a digital manufacturing model suggests that Protolabs is investing in technology to optimize its supply chain. The use of digital tools and platforms can enhance visibility, forecasting and coordination among partners, leading to a more integrated and streamlined manufacturing process. This strategic approach can improve overall supply chain performance and provide a competitive advantage in the marketplace.
Transition from Hubs to Protolabs Network brings expanded capabilities and establishes a unified customer experience under one brand
“We’re building a business model that the manufacturing industry has never seen before, and customers are beginning to harness the full potential it offers,” explained Rob Bodor, Protolabs’ President and CEO. “In the third quarter of 2023 alone, revenue fulfilled through Protolabs Network increased over 80 percent year-over-year! It is a true testament not only to our savvy customer base who is extracting that manufacturing value, but our entire Protolabs team of employees who have brought this model to life.”
The business model Bodor is referring to is a hybrid digital manufacturing model combining Protolabs’ internal digital factories with a global network of suppliers—Protolabs Network—to provide customers a manufacturing resource throughout a product’s entire life cycle.
Protolabs Network includes more than 250 highly vetted supply partners, to serve customers’ broad needs across the life cycle of their products—from innovation and prototyping to production and end-of-life product support. Customers can access tighter tolerances, enhanced finishing options, and higher volumes at lower cost, among other benefits. The manufacturing partner network complements the low-volume, on-demand manufacturing services also available from Protolabs.
“This is the future of the industry—manufacturing that is completely tailored to what customers need, when they need it, and at the price point they want,” said Pjotr Horowitz, managing director for Protolabs Network. “It’s exciting to be on the frontlines driving that evolution.”
The newly rebranded Protolabs Network is now live. To learn more about Protolabs’ hybrid manufacturing model that combines factory and network capabilities, check out its breakdown of the framework for the future.
About Us
Protolabs is the fastest and most comprehensive digital manufacturing service in the world. Our digital factories produce low-volume parts in days while Protolabs Network unlocks advanced capabilities and volume pricing through its highly vetted manufacturing partners. The result? One manufacturing source—from prototyping to production—for product developers, engineers, and supply chain teams across the globe. See what's next at protolabs.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240108659605/en/
Media Contact
Protolabs
Brent Renneke, 763-479-7704
PR & Media Strategist
brent.renneke@protolabs.com
Investor Relations Contact
Protolabs
Ryan Johnsrud, 612-225-4873
Manager, Investor Relations and FP&A
ryan.johnsrud@protolabs.com
Source: Protolabs
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