Stratasys and AM Craft Partner to Drive Growth in 3D Part Manufacturing for Aviation
Stratasys (NASDAQ: SSYS) and AM Craft have entered a partnership to boost 3D printed parts production for the aviation industry. This collaboration will leverage Stratasys' expertise with AM Craft's distributed production model. AM Craft holds an EASA Part 21G Production Organization Approval, enabling the delivery of certified parts important for airlines and OEMs. The partnership includes Stratasys' strategic investment in AM Craft and their addition to AM Craft's board. This alliance aims to address supply chain challenges in the aviation sector, ensuring the availability of needed parts. The partnership extends AM Craft's reach to Southeast Asia and Europe, with plans to collaborate with Stratasys Direct Manufacturing in the US.
- Strategic partnership between Stratasys and AM Craft to enhance 3D printed aviation parts production.
- AM Craft holds EASA Part 21G Production Organization Approval, ensuring certified parts.
- Stratasys' strategic investment in AM Craft bolsters confidence in their supply capabilities.
- The partnership extends AM Craft's production network to Southeast Asia and Europe, with 13 printers under EASA 21G approval.
- Over 28,000 flight parts produced to date under the combined network.
- Potential dependency on regulatory approvals for further production expansions.
- Operational challenges in managing distributed production across multiple regions.
Insights
The partnership between Stratasys and AM Craft can potentially drive significant growth in the aviation sector, especially in the niche of 3D printed parts. Stratasys' strategic investment indicates their belief in the long-term viability and profitability of this collaboration. For investors, this partnership suggests a strengthened revenue stream for Stratasys. As AM Craft holds an EASA Part 21G Production Organization Approval, it mitigates one of the key hurdles in the aviation industry's adoption of 3D printing - airworthiness certification. This approval essentially de-risks the investment for Stratasys, as it assures compliance with stringent European aviation standards.
From a financial perspective, the collaboration could result in diversified income sources and a more resilient business model for Stratasys. Short-term, we might not see immediate financial uplifts, considering the time required for operational integration. However, the long-term outlook appears positive with the potential for substantial revenue increments from the aviation aftermarket segment, known for its low volume and high mix nature.
The aviation aftermarket has lucrative margins due to the high cost of grounded aircraft and the necessity of timely part replacement. This could translate into higher profitability for Stratasys as their 3D printing solutions provide a cost-effective and swift response to these needs.
This collaboration marks a significant milestone in the aerospace sector's broader adoption of 3D printing technology. AM Craft’s existing certification and production network, combined with Stratasys’ expertise, could lead to a pivotal shift in how airlines and MROs approach part manufacturing and supply chain management.
Currently, one of the persistent challenges in aviation is the long sustainment life of aircraft, which complicates the forecasting and stocking of replacement parts. The additive manufacturing solution presented here directly addresses this by enabling on-demand, localized production of certified parts, significantly reducing lead times and inventory costs. This partnership not only simplifies logistics but also enhances the agility of airlines and MROs in maintaining their fleets.
Moreover, the expansion into Southeast Asia and Europe with new facilities indicates a strategic move to penetrate critical MRO hubs. This local presence can potentially offer quicker turnaround times for part replacement and repairs, thus providing a strong competitive edge. The future collaboration with US-based facilities further suggests an ambition to capture a more significant market share across various regions, which could set a new industry standard.
The partnership between Stratasys and AM Craft aligns well with the current trends in the additive manufacturing market, particularly in the aerospace industry. The strategic focus on certified aviation parts addresses a growing demand for reliable, quick-turnaround solutions in aircraft maintenance and repair. This market is projected to grow as airlines seek cost-effective and efficient ways to manage their fleets.
By leveraging AM Craft's EASA certification and Stratasys' technological capabilities, the companies are well-positioned to capture a significant share of this expanding market. The distributed production model is a substantial advantage, allowing for localized manufacturing, which meets the industry’s need for timely and geographically diverse production solutions.
Investors should note the potential for this partnership to drive innovation in supply chain management within the aviation sector. The ability to produce parts on demand, reduce waste and ensure high-quality standards could lead to broader acceptance and reliance on 3D printing technologies across various industries. This positions Stratasys not only as a leader in additive manufacturing but also as a key player in transforming traditional supply chains.
Aligning Stratasys’s deep technical expertise and leadership in the aerospace industry with AM Craft’s distributed production model for certified aviation parts positions both companies for sustained growth in aviation part manufacturing
These 3D Printed custom cup holders and trays are printed in color and installed in regional jet cockpits without need for further finishing. (Photo: Business Wire)
Holding an EASA Part 21G Production Organization Approval, AM Craft solves a key barrier to broader adoption of 3D printed parts in the aviation industry by delivering airworthiness certified parts to airlines, MROs, and OEMs. Additive manufacturing has strong appeal as a supply chain solution in these markets due to the long sustainment life of aircraft and the resulting challenges in forecasting and stocking replacement parts.
“The low volume, high mix nature of the aviation aftermarket has resulted in extreme challenges to supply even the most minor of parts necessary to keep global fleets flying,” said Stratasys Senior Vice President Jeff Hemenway. “Additive manufacturing addresses those challenges by cost-effectively producing at the rates and volumes required. AM Craft’s EASA-approved approach to certification takes this burden off the end customer.”
To facilitate the partnership with Stratasys, Hemenway is joining the AM Craft board of directors.
Didzis Dejus, CEO of AM Craft, adds, “Aligning with Stratasys will further strengthen the confidence of our customers that we can supply them with needed parts. Given Stratasys’ leadership in additive manufacturing we will continue to drive the adoption of 3D printing in the airline and MRO industries. Their technology is an ideal fit for aviation.”
AM Craft currently produces aviation components in
The combined network operates 13 printers under EASA 21G approval, which have produced more than 28,000 flight parts to date. A future step within the partnership will be to evaluate collaboration with US-based Stratasys Direct Manufacturing, and their substantial install base of similar equipment.
“Aviation is a global industry, and our customers see localization of production as a major advantage that AM Craft can offer. By aligning with Stratasys and Additive Flight Solutions, we are better able to meet our customers’ needs to be in more major MRO hubs,” said Scott Sevcik, AM Craft VP of Strategy and Business Development. “In addition to being where our customers need us to be, it’s also critical that we continue to build the catalog of parts. We believe that this collaboration with Stratasys, as well as other major aviation suppliers and distributers, will help us to accelerate our future growth.”
Stratasys and AM Craft both look forward to further developing additional aspects of their collaboration to accelerate the adoption of additive manufacturing within the aviation industry.
About AM Craft
AM Craft is an end-to-end aviation supplier that leverages expertise in polymer additive manufacturing, design, airworthiness certification, and a distributed production methodology to ensure customers have the right part, at the right time, in the right location. AM Craft’s distributed production methodology combines in-house design and manufacturing with independent local production partners under a unified certification umbrella to bring flight part production to the point of need. Headquartered in
About Stratasys
Stratasys is leading the global shift to additive manufacturing with innovative 3D printing solutions for industries such as aerospace, automotive, consumer products and healthcare. Through smart and connected 3D printers, polymer materials, a software ecosystem, and parts on demand, Stratasys solutions deliver competitive advantages at every stage in the product value chain. The world’s leading organizations turn to Stratasys to transform product design, bring agility to manufacturing and supply chains, and improve patient care.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240624165604/en/
Media and Investor contacts:
Stratasys Corporate &
Chris Reese
chris.reese@stratasys.com
+1 651 357 0877
Kalyani Dwivedi
Kalyani.Dwivedi@stratasys.com
+91 80 6746 2606
Erica Massini
Erica.Massini@stratasys.com
+55 (11) 2626-9229
Stratasys Corporate &
Erik Snider
Erik.Snider@stratasys.com
+972 74 745 6053
Investor Relations
Yonah Lloyd
Yonah.Lloyd@stratasys.com
+972 74 745 4919
Source: Stratasys Ltd.
FAQ
What companies are partnering to enhance 3D printed parts in aviation?
What certification does AM Craft hold for aviation parts?
How many 3D printed flight parts have been produced by the combined network of Stratasys and AM Craft?
What regions are included in the production network under the new partnership?
What is the stock symbol for Stratasys?
