Two notable USA-based 3D printing companies have apparently shut down.
3DEO Goes Down
One is 3DEO, which we’ve covered many times. The Los Angeles-based operation developed a metal binder jet process that was highly suitable for producing small metal parts at scale.
They also pioneered what is now an increasingly common practice: don’t sell the 3D printers, sell a service. This method simplifies operations significantly because no service organization is required.
However, it didn’t work in the end, as we now see that the company is in an insolvency/liquidation process. A press release in the past week explains that Brian Testo Associates is acting as assignee for the benefit of creditors of 3DEO. Basically, this means that the company’s assets are being sold in order to pay back creditors.
The sale is selling all of the intellectual property and machinery. This is effectively the entire business of 3DEO, which actually had good tech and quality part production. The press release stated that they’ve already received at least one bid for US$3.4M for the assets. It could be that someone else may attempt to resurrect the business using the assets.
Fusion3 Also Goes Down
Fusion3 was a North Carolina-based operation that produced professional-grade 3D printers. This is the market segment that is being destroyed by increasingly sophisticated entry-level equipment from companies like Bambu Lab or Creality. Machines from those companies have almost the same features as professional machines, except at a far lower price.
Unlike 3DEO, there is no official press release from Fusion3. Their website remains in “operational mode”, but their Shopify site is “paused”. This is typical of failing companies: there is no one left to turn off the lights.
However, we do see a listing with Iron Horse Auction that refers to “Liquidation of Fusion3 Design; 3D Printers, Parts, Etc.” This strongly suggests that Fusion3 has gone bankrupt and their assets are being sold off, just like 3DEO.
The listing itself shows 50 items that are mostly unsold 3D printer inventory, half-assembled units and parts, and shop tools. In other words, the entire contents of the manufacturing centre.
Analysis
It’s easy to see why Fusion3 failed: the entry-level machines “caught up” with the professional systems and beat them on price. Why would anyone pay, say, US$5000 for a professional machine when you can get the same function for US$1000 or less?
It’s harder to see why 3DEO failed. They did have a rather narrow market, however: companies requiring moderate quantities of small metal parts. Such parts can often be made at scale through traditional manufacturing, and that would likely be cheaper than 3D printing the same parts.
It could be that 3DEO’s market was simply too small: how many companies would want small metal parts that could not be made using traditional manufacturing methods? How many companies want smaller quantities of small metal parts? Finding customers in those areas just might have been too difficult.
Via PRNewswire and Iron Horse Auction
