3D Systems Announces New Strategic Focus, Restructuring Plans

3D Systems announced a new strategic focus, as well as a reorganization and restructuring, to focus on high-growth additive manufacturing markets.

The company is realigning into two key market verticals: healthcare and industrials. 3D Systems’ healthcare division supports orthopedic device manufacturers and contract manufacturers through printers, materials, software and design and engineering solutions.

3D Systems has faced declining revenue. The company reported revenue of $629.1 million in 2019, -8.5% from 2018. For 2H20, healthcare revenue declined -9.2% from $105.5 million to $95.8 million.

The company expects the resizing effort, along with other cost reduction measures, will reduce annualized costs by approximately $100 million by the end of 2021. These efforts should enable the company to be profitable at current revenue levels. Other cost reduction efforts include reducing the number of facilities, examining every aspect of the company’s manufacturing and operating costs and reducing its workforce by 20%. The company is also evaluating divesting parts of the business that do not align with its new strategic focus.

“We have a tremendous opportunity in this industry, and I’m excited by the passion, the breadth of technology and the exceptional capabilities within our company,” said 3D Systems President and CEO, Dr. Jeffery Graves. “In the two months since I joined 3D Systems, I have held many reviews and discussions with our employees and key customers to understand the value we deliver, and the markets that we serve. This has enabled us to state a clear purpose for our company moving forward – one that builds upon on our unique history and core strengths, which will guide us to an exciting future ahead: We are the leaders in enabling additive manufacturing solutions for applications in growing markets that demand high reliability products.”

Dr. Graves continued, “We will focus on markets and applications where a premium is placed upon performance and reliability; with engineering/technology cultures that seek product innovation as a means of delivering value to their customers; and with processes that tend to be highly controlled. Thanks to our unique offering of hardware, software, materials and services, combined with our leadership in application knowledge, we believe we are best-positioned to provide additive manufacturing solutions for specific, high-value applications in growing markets like healthcare, aerospace and defense. We have a demonstrated capability to be successful in these markets, with our technologies and process knowledge today enabling up to half-million production parts to be made through additive manufacturing each day.”

RELATED ARTICLES



CONTACT BONEZONE

 

CONTACT BONEZONE