3D Systems announces restructuring initiative for software and metal AM machines
March 1, 2023
3D Systems, Rock Hill, South Carolina, has announced a multi-faceted restructuring initiative to improve operating efficiencies, including optimising its European metal Additive Manufacturing operations and streamlining its software organisation. The initiative is expected to reduce operating expenses in 2023 by approximately $2.5-3.5 million, and provide an annualised savings of approximately $5.5-7 million in 2024 and beyond.
As a key aspect of the restructuring initiative, the company will consolidate the engineering and manufacturing of its metal AM machines to reduce cycle time on new product introductions and increase operational efficiencies. This includes the DMP 200 (small), DMP 350 (medium), and DMP 500 (large) Laser Beam Powder Bed Fusion (PBF-LB) machines.
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3D Systems has also streamlined its software development operating structure to further reduce ongoing operating expenses. Software is an essential element of the company’s future growth strategy, and over the past year, the company has merged its portfolio of Additive Manufacturing applications with the Oqton Manufacturing Operating System organisation, creating an integrated end-to-end software suite under a unified management structure. These latest software-related cost savings are said to reflect synergies derived from this successful integration effort.
Activities related to these restructuring initiatives will begin immediately and are expected to be completed by mid-2023.
“These restructuring efforts are an extension of the work we began in late-2020 to streamline our operational footprint and better leverage our company scale in Additive Manufacturing,” stated Dr Jeffrey Graves, 3D Systems’ president and CEO. “Over the last year, we have made significant progress through the focusing of our development activities and by selectively insourcing the manufacture of our high-complexity, high-value 3D polymer printers. These efforts have reduced operating costs while improving customer quality and delivery reliability. With momentum established in our polymer platform operations, we will now extend our focus to our metal systems, bringing together and streamlining our engineering and operations teams.”
“With regard to software,” he continued, “through the acquisition of Oqton and the subsequent consolidation of our software platforms under a unified organisational structure, we have now enabled further operational efficiencies to be gained in this key area of the company. While we have significant benefits to realise from all of these efforts, they by no means represent the last chapter of efficiency improvements that are available to us. Moving forward, we will continue to implement improvement plans to meet our goal of being the leading, most successful Additive Manufacturing company in the world.”
