An unusual announcement from E3D suggests they are diversifying their operations.
The Oxford-based company has been producing high-end hardware components for FFF 3D printers for many years, and the popularity of their products has occasionally led to de facto industry standards.
Their focus is on components, particularly hot ends, but in the past they did have a venture into a full 3D printer product, the toolchanger. Unfortunately it didn’t catch on, in spite of the product’s unique (at the time) ability to quickly print in multiple materials.
The latest announcement deals with a partnership with Batch.Works, a UK-based firm that focuses on developing methods of circular manufacturing and sustainable methods. For example, any products made by them can be returned to the company for recycling.
But what is this partnership all about? E3D explains:
“Under the agreement, E3D becomes Batch.Works’ key hardware and farm operations partner in the UK. E3D will build and operate dedicated print farms to produce Batch.Works’ own hardware alongside selected customer products, while Batch.Works will provide circular materials, software and quality standards across the network.”
It seems that E3D is becoming a kind of internal print service bureau for Batch.Works. I have little doubt E3D will be able to succeed at this, given their expertise in the technology and their experience with the toolchanger.
E3D CEO Joshua Rowley said:
“Working with Batch.Works allows us to apply that expertise to a new generation of circular print farms – enabling customers to anufacture closer to home, with better performance and a much smaller environmental footprint.”
This does make some sense, in that Batch.Works provides the customers, and E3D provides the manufacturing. That is what makes a good partnership.
That’s all good, but this is quite a divergence in strategy by E3D. This is not manufacturing components for public and corporate buyers; it is providing a service. That’s very different.
This could be a case for E3D simply diversifying their sources of revenue, which is always a good idea. However, it could also be that they foresee challenges to their existing business model in coming years with changes in the industry.
Recently we’ve seen a development appear that might have an affect on E3D. Desktop 3D printer operators have become increasingly aware of the waste generated by current filament swapping systems, and this has led to the development of new waste free approaches. Bambu Lab developed the Vortek hot end swapping system, and Prusa Research has partnered with Bondtech on their INDX swapping system.
These set the stage for an industry switch to this style of waste-free FFF 3D printing in the future. However, neither approach makes use of E3D hardware. Bondtech is a competitor, and Bambu Lab makes their own components. Asian companies that will no doubt announce their own versions are unlikely to be buying E3D components.
It could be that E3D is creating a separate line of business that is insulated from the current intense competition in the hot end space. That is a good strategy, and could enable them to maintain their position.
Via E3D and Batch.Works
