growth opportunites in additive manufacturing throughout northeast ohio
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Additive Manufacturing Asset Roadmap for NEOhio
Thanks to Generous Support from:
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NE Ohio’s Additive Manufacturing Supply Chain
Supply Chain Number of Companies
Materials 19
Systems/Systems Parts
15
Design/Engineering 14
Production 85
Post Processing 7
Third Party Research & Development
18
Workforce 19
Third Party Testing 9
Value Added 3
Sourcing 6
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Part production is key regional strength
Materials and Design/Engineering are key growth assets
Several entrepreneurs making desktop printers and system parts
Software appears to be an underrepresented sector in NE Ohio
Use Segmentation of AM Parts Production
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PROPRIETARY AND CONFIDENTIAL
McKinsey, Wohlers 2014 Prototyping is common and widely used as design/engineering & marketing tool
Direct part production growing rapidly in specific markets
Tooling represents large short term growth opportunity
Growth Opportunity for NE Ohio: Tooling & Fixtures is Key Short Term Opportunity
Interviewed 20+ parts & tooling manufacturers in NE Ohio
Prototyping remains the most common use of AM for design visualization
Identified 14 use cases where AM can provide significant economic value creation
Tooling & fixture examples in NE Ohio:
• Production of mold inserts for tire molding to enable design complexity
• Blow molding tooling to reduce design cost
• Fixtures for window profile welding to reduce reject rate
• Thermoset mold inserts for redesign cost reductions
• Low cost thermoset mold tooling to allow capture of low volume production
• Lower cost inspection fixtures for pumps
• Low cost fixtures for metal stamping
• Low cost FDM printed inserts for low volume trial of thermoplastic injection mold redesign
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Barriers to Adoption
Many clients see the value in 3DP, but cannot sustain the technology internally for a variety of reason• Operationalizing 3DP requires
investment in development• Lack of understanding• Capital investment in
immature systems• Technical issues remain
NE Ohio Market Opportunity for Tooling and Part Production is Substantial Tooling is the near term for growth opportunity, and parts production as a longer term opportunity
NEO’s strength in plastics and metals fabrication provides significant economic opportunity from adoption of AM for tooling applications in the short term and part production longer term
3 Costs and Effectiveness of Additive Manufacturing, NIST, Dec. 20144 Data from FirstResearch5,6Data from Mergent Intellect7 Data from Congressional Research Service
$730B4
$63B5
$17B6
Obtainable Market
Total U.S. Market for plastics manufacturing, metal fabrication and polymer materials industries
NEO Total Addressable Market for plastics manufacturing, metal fabrication and polymer materials industries
NEO Available Market: Specific segments of the NEO plastics manufacturing, metal fabrication and polymer materials industries identified by the Project Team as having a good opportunity for economic impact
Portion of the Available Market that can realistically be penetrated by additive manufacturing. A recent study sized the US AM tooling opportunity at $8.8B in 2020. Ohio is 2nd in the US in tool, die & mold output with ~12% share7. We estimate a market potential of >$1B for AM tooling production in Ohio by 2020
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Growth Opportunity for NE Ohio: Direct Part Production Holds Promise for Long Term Growth
60% growth rate in direct production compared to 30% overall growth rate
Two fastest growing market segments globally are aerospace and biomedical devices
• Boeing and Airbus using hundreds of parts for weight reduction, design complexity, cost savings
• Custom hearing aid ear molds and custom fit cases/ Invisalign molds for dental braces
Tech Belt use cases in aerospace:
• Alcoa and GE both produce laser sintered aerospace components
• Alcoa reported to us wide use in soft tooling, fixtures, prototype tooling for mold core casting, and even steel tooling that enabled significant part consolidation
Regional use cases in biomedical:
• QED uses FDM in production of low volume MRI coil enclosures
• Osteosymbionics produces cranio-facial implants via AM
• Cleveland Clinic uses AM for patient-specific tissue modeling and pre-surgical planning
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Barriers to Adoption
• Aerospace Tier 1s cannot afford to risk use of subs for mission critical parts• AM has too much variation to
allow use of service bureaus
• Customers do not understand AM design rules – unrealistic expectations
• Closed material models by system suppliers stifle design growth
• Material availability limits growth in biomedical uses
• Use in large volume markets like automotive requires improvements in cost and productivity
Materials is a “Legacy Strength” in Northeast Ohio
• 4X the Concentration of Materials Suppliers than US Average
• More than 50% of Ohio’s Materials Jobs Located in the Region
World Class Research Institutes including
• Case Western Reserve University – Macromolecular Science
• University of Akron – Polymer Science & Engineering
• Youngstown State University - Materials Science
NE Ohio AM materials capability is mostly in polymers• Village Plastics (Norton) acquired by 3D Systems to produce filament
• Other filament makers in Chesterland, Youngstown, Brecksville (Lubrizol)
• New open source machines may provide more potential for market entry
AM metal powder capacity in Tech Belt • Alcoa, Carpenter, Puris, Additive Metal Alloys
Growth Opportunity for NE Ohio: Materials
Global Addressable Market$768M in 2015, up 20% from 2014
Polymers represent $550M, up 20% over 2014
Metals reached $88M, an 80% growth rate over 2014
Growth was largely driven by aerospace and bioscience
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Market Barriers
“Closed Systems” between OEMs and Suppliers
Market Knowledge
Existing Patent Restrictions
Wohlers
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Growth Opportunity for NE Ohio:R&D and Engineering Design Assets
Understanding of design and engineering strategies for AM wasidentified as one of the most critically needed skill sets for industry
NE Ohio is home to strong design assets
The region has a history of creating strong engineering talent and currently is well-positioned to support the specialized skills required for AM.
Emphasis should be placed on attraction/retention of industrial design centers to keep NEO-trained talent in the region
NE Ohio is home to some of the nation’s leading programs supporting research and education in AM:
YSU America Makes Case Western Reserve University University of Akron
NE Ohio is home to strong AM workforce development programs:
Cuyahoga Community College Lorain County Community College Stark State Cleveland State
The broader TechBelt region boasts the additional strength of Carnegie Mellon, Pitt, Penn State and Robert Morris Universities
NEO benchmarking against other regions of US
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Midwest cluster should be explored• Pittsburgh - metals, R&D &
software assets; home to Alcoa and GE AM development
• Michigan – attracting hardware OEMs – Voxeljet, SLM, Envisiontec
Strengths:
Universities with strong focus on growing 3DP designers
Mfg supply base in plastic & metal fabrication with strong workforce
Presence of America Makes
Growing entrepreneur network in AM
Strong biomedical research community
World class polymer materials assets
Weaknesses:
Lack of software/IP talent initiatives
Limited venture funding
Limited knowledge base in mfg community
No major AM machine companies in region
Not enough OEM design centers
Opportunities:
Better integration with America Makes to inject IP and provide development resources
Support use of AM as productivity tool to enable reshore and comeptitive advantage for supply base
Retain/attract design talent
Threats:
Other states more proactive in attracting direct investment
Design centers locating elsewhere in midwest
Closed systems inhibit participation by materials sector
Loss of design/ engineering talent to other regions
NE Ohio Position in Additive
Manufacturing
Vision
By 2023, Northeast Ohio will be recognized as a leader in:
Design and engineering for additive manufacturing
Using additive manufacturing for productivity enhancements
AM entrepreneurial investment and growth
AM materials innovation
Attraction of significant FDI related to the core activities of America
Makes
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Next Steps
Take the survey on the website• Background• Seeking candidates for further interviews• Feedback • Areas of interest
Receive the full report upon completion of the survey
Link to survey: www.neohioamcluster.org
Contacts:• Barb Ewing – [email protected]• Tim Fahey – [email protected]• Scott Deutsch – [email protected]• Dave Pierson – [email protected]
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