ROCK HILL, S.C. – Daimler (OTC:MBGAF) Truck | Daimler Buses and 3D Systems (NYSE:DDD), a $411 million market cap company currently showing a -12.26% revenue decline over the last twelve months, have announced a collaborative effort to produce spare parts for buses and trucks using 3D printing, a move that could significantly reduce delivery times. The partnership also includes software company Oqton and digital rights management firm Wibu-Systems, aiming to protect Daimler’s intellectual property while expanding its manufacturing capabilities.
The new solution allows Daimler Buses-certified 3D printing partners to produce parts on-demand, potentially cutting down delivery time by up to 75%. This approach is expected to help overcome supply chain challenges, enhance service flexibility, and minimize vehicle downtime for maintenance, leading to indirect cost savings for commercial vehicle companies.
Ralf Anderhofstadt, head of additive manufacturing at Daimler Truck and Buses, stated, "The Digital Rights Management enables us to shorten service times through decentralized production in order to further maximize productivity and revenue for commercial vehicle companies."
Service providers previously faced significant delays when specific parts were not readily available. However, with this advanced solution, they can now work with local service bureaus to quickly manufacture the needed parts on demand, improving operational efficiency and customer satisfaction.
To join Daimler Buses’ network of certified partners, service bureaus can purchase a license for 3DXpert through the Omniplus 3D-Printing License eShop. The software facilitates the decryption of design files for specific repair jobs, allowing production of the exact quantity required. Currently, the parts are designed to be printed on 3D Systems’ SLS 380 printer, with plans to expand compatibility to other polymer and metal 3D printers in the future.
Jaime Garcia, additive solutions manager for automotive and commercial transportation at 3D Systems, expressed enthusiasm for the integration of their technology into Daimler Buses’ workflow, anticipating growth as more 3D printing capabilities are added.
The additive manufacturing market in the automotive sector, valued at $2.9 billion in 2022, is projected to grow to $7.9 billion by 2027. While InvestingPro data shows 3D Systems maintains a healthy current ratio of 3.31, the company’s overall financial health score is rated as WEAK. This collaboration represents a significant step towards realizing the potential of additive manufacturing in the automotive industry. [Want deeper insights? InvestingPro offers 10+ additional expert tips and comprehensive analysis for 3D Systems.]According to InvestingPro analysis, 3D Systems appears undervalued at current levels, though investors should note the stock’s high price volatility. The company is among 1,400+ US stocks covered by InvestingPro’s detailed research reports, providing valuable insights for investors interested in the 3D printing sector.
The information for this report is based on a press release statement.
In other recent news, 3D Systems has experienced a downturn in its financial performance, with revenue declining 12.26% to $443.94 million in the last twelve months. The company reported a 9% year-over-year decrease in its third-quarter revenue for 2024, standing at $112.9 million. This decline was attributed to macroeconomic and geopolitical challenges impacting capital expenditure across industries. Despite these challenges, the company’s healthcare segment has seen growth, particularly in dental and personalized healthcare.
Lake Street Capital Markets has maintained a Buy rating for 3D Systems, reflecting a belief in the company’s potential to benefit from the current market dynamics. The firm anticipates that the tailwinds in additive manufacturing will continue to support the sector, despite the current headwinds faced by the broader economy.
Other recent developments for 3D Systems include the introduction of nearly 40 new products, including materials, software, and printing platforms. The company also expanded in healthcare with new FDA clearances and growth in AI-driven applications. Despite the challenges, 3D Systems is anticipating a modest recovery in the latter half of 2024 and has set its full-year revenue targets between $440-$450 million.
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