Print Industry Insight

A Division of OutputLinks Communications Group

13 May 2013 V46, No. 9

www.GreensheetBIZ.com

3D PRINTING ADD IT TO YOUR MENU OF SERVICES?

By Aaron Kiel, GreensheetBIZ (Inside: 3D Printing The Inspiring, Exciting Opportunity of the Future) ne might be hard-pressed to escape news about 3D printing technology and its many applications; i ts everywhere. In fact, President Barack Obamas State of the Union address in February heightened the buzz on 3D printing, when he talked about how it has the potential to revolutionize the way we make almost ever ything. And Braintree Printing, a forward-thinking print service provider in Boston, Mass., held an open house last month, showcasing its foray into the segment with a Dimension 1200es 3D printer by Stratasys. And over the last couple of weeks theres been significant press coverage about: 1) 3D printing of guns at home via online blueprints; 2) Staples becoming the first major U.S. retailer to sell 3D printers starting at the end of June; and 3) the launch of a new educational center/print shop for businesses and consumers, The 3D Printer Experience in Chicago, Ill.

Terry Wohlers, an independent analyst who advises companies on the 3D printing sector, was cited in a Reuters article in March, noting the 3D printing industry was worth $1.7 billion worldwide in 2011 and will grow to more than $3.7 billion by 2015. Jim Hamilton, group director for InfoTrends production group, said, To a large extent, the first 25 years of digital printing [has] been driven by document printing. Digital printing of documents will continue to grow, but some of the highest growth areas over the next 25 years will come from digital printing of functional and industrial applications, including packaging. What Is 3D Printing (If You Dont Already Know)? Wikipedia describes it as a process of making a threedimensional solid object of virtually any shape from a digital modelThe technology is used for both prototyping and distributed manufacturing in jewelry, footwear, industrial design, architecture, engineering and construction, automotive, aerospace, dental and medical industries, education, geographic information systems, civil engineering and many other fields. Julie Friedman Steele, co-founder of The 3D Printer Experiencethe only 3D printing destination in the Midwest with a focus on experiential education, creation and innovationsaid, Its only a matter of time before mass manufacturing is a thing of the past, as personal customization begins to take center stage. According to Friedman Steele, 3D printing represents freedom and independence, not having to rely on mass-produced items. Were moving from a consumer-based economy to producing your own goods for personal and communitybased needs, she added. So if 3D printing is so hotwith so many markets to targetshould print service providers consider adding 3D to their menu of offerings? Jim Corliss, co-owner of Braintree Printing, is cautious. Its too early to say, he said. Braintree, which provides offset printing and digital printing for printers and print brokers throughout the Northeast, has been using its Stratasys 3D printer over the last two months. The machine was a $50,000 investment and now, in just minutes, customers digital files can become physical 3D objects. 3D printers are a game-changer in new product development, said Corliss, who believes 3D will be a boon to designers, engineers, medical professionals and manufacturers, saving them time and money on product development. Our customers will be able to perfect their products before they go to Continued on page 2, right column >>>
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NAMES IN THE NEWS

Mike Connors, managing director of the production department at The New York Times, and industry guru Frank Romano will be honored by the Gamma Chapter of Gamma Epsilon Tau. The two experts will receive the Gamma Gold Key Award during the graphic arts honor societys event in New York City on May 29. Jeffrey Hayzlett, a global business celebrity, bestselling author and former Kodak executive, joined the Bloomberg Television network as contributing editor. Richard McDonald was appointed to the newly created position of senior vice president, business development at Schawk, Inc. Lisa Milburn was promoted to managing director of Tarsus Groups label division. Toni Clayton-Hine was named vice president, global marketing and value proposition for Xeroxs Channel Partner Operations. Robbie King accepted the position of narrow web national sales manager at Harper Corporation of America.

3D PRINTING COVER STORY (Cont.)

manufacturingall at the touch of a button. At the Braintree plant, customer service rep Robin Clark has been testing their new 3D printer, which can produce models as large as 10 x 10 x 12 in multiple colors. Clark has created an assortment of products, from an entire chess set to screws, chains, gears, wheels, a human heart and a toy dragon ( a Braintree YouTube video shows a tiny replica of a boat being printed). Its amazing what this printer can do, she said. Braintree has gained about six 3D-printing jobs thus far, amounting to around $2,000. However, this is just the beginning for the company. In the near future, theyll dig deep into their geographic area and target potential customers, but they havent ma rketed yet. Its totally a separate business than printing but its complimentary, said Corliss, who believes the real challenge is identifying customers, as theyre not the same folks who buy traditional print services. However, for Braintreewhose core business is high-end offset and digital printing, book printing and various types of bindery and finishingthe companys prepress team made it an easy decision to go 3D. We already have a very strong set of pr epress skills, and were not intimidated by files and ma nipulating files, so we already have that end in place, shared Corliss. Our prepress guys see it as just another print file and just another print job. Before acquiring their printer, Braintree looked at several vendors, focusing on three companies in the end: Stratasys, Mcor Technologies and 3D Systems. Stratasys won out, according to Corliss, because the printed objects could actually be used as parts, whereas the other machines they reviewed could only print 3D prototypes. We think the demand is big for the technology we opted to get, he noted. In terms of competition with local companies that already specialize in producing prototypes or 3D printed objects, Corliss said Braintree wins on turnaroundnext day vs. four to five days with other shops. InfoTrends Ron Gilboa (see his column on the back-page) said Braintree made the right decision because they didnt go gung ho and buy the biggest printer ; instead, they took the crawl/walk/run approach. Gilboa, who was appointed InfoTrends director of functional printing and packaging in April (he was previously with Eastman Kodak Company for about a decade), said he looks forward to charting the next 25 years of innovation in the functional and industrial printing marketplace. In fact, he suspects many print service providers are looking into 3D now, to augment their existing business. Many small, local commercial printers are thinking about it because they can get in with a relatively small investment, and then learn if its something they can do long-term. Gilboa pointed to a few of the major 3D equipment vendors, including: Stratasys, Makerbot, 3D Systems, Solido, Bits from Bytes, Desktop Factory and Formlabs, among others. He also offered several things to consider before making a move: Marketing 101 Know your business strategy before moving forward. Ask if you should diversify with 3D, based on the customers around you. You have to unde rstand who your audience is, because the skys the limit with 3D printing, advised Gilboa. Typically, 3D Printers are deployed in environments where prototyping and short run production of functional devices are produced. Also, according to Gilboa: Sort out how you want to charge and consider the expenses. Time is a main expense, as it can roughly take 10 to 20 hours to produce an object, plus the time it takes for re-dos or mistakes. Theres also the cost of materials and maintenance. Know That Not All 3D Printers Jet the Same Materials. Figure out what type and size items you may want to print before buying the p rinter. You have to buy the device thats going to fit what youre going to print for your customers, explained Gilboa. Look at the support training and hand -holding youll receive from equipment vendors. Youll want a reputable partner to help you thr ough the learning curve. Gather intelligence on the basics. Gilboa said theres an insane amount of 3D printer options to consider, and a $50 million print business has much different needs and requirements than a $10 million print business. Dont Forget B2C There are opportunities for print service providers to get into B2C with 3D printing, but those are still fairly embryonic, Gilboa noted. Overall, Gilboa said he believes small printers could potentially bring in around $250,000 to $300,000 (a rough guesstimate) in the first year with 3D printingif the plant makes wise decisions. Aaron Kiel is the senior editor of GreensheetBIZ and OutputLinks. Thoughts? ShareURview at TalkBack@GreensheetBIZ.com.

NEW PRODUCTS & SERVICES

HP announced worldwide availability of the HP SmartStream Production Center and HP Indigo Print Care 2.0. Both offerings are designed to help increase the productivity and efficiency for printer service providers (PSPs) across entire print production operations. First seen as a prototype at drupa 2012, HP SmartStream Production Center is a softwarebased production management system designed to address the challenges of efficiently receiving, producing and delivering high volumes of short-run print jobs. The system helps PSPs meet aggressive customer deadlines by improving job status visibility, identifying and eliminating bottlenecks and monitoring production, enabling more effective use of PSPs capital equipment. HP SmartStream Production Center is a versatile system that can fit into any production environment. See www.hp.com/go/SmartStream.

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IN MEMORIAM
Terry Nagi, 73, president of Terry A Nagi & Associates and owner of DigitalPrint Resources, died. As a well-known industry marketing expert, Nagi was with the Printing Industries of America as executive vice president in the 1970s and 80s, where he headed GAMIS, Graphic Arts Mktg. Info Service, now PRIMIR. In the 1960s and early 70s, he was a VP with Western Publishing Company, responsible for creating the strategic marketing and sales direction of the $100 million print segment of their business. Prior to that he was a sales representative and sales manager for Dataforms Incorporated. Nagi received an MBA degree from the University of Wisconsin-Madison. His wife Barbara and daughter Suzanne live in Georgetown, Washington, D.C. A memorial service for Nagi will be held on May 24 at Georgetown Presbyterian Church in Washington, D.C.

VIEWPOINT: 3D PRINTING THE INSPIRING, EXCITING OPPORTUNITY

By Steve Erickson, First American Plastic Molding Enterprise & Quad, Inc. ccording to a panel of experts speaking at the 2013 South by Southwest (SXSW) conference in Austin, Texas in March, the future of 3D printing is very economically promising for businesses from start-up companies in garages to multimillion dollar corporations worldwide. And the SXSW panelists believe that most people dont yet realize all of the upsides to 3D printing. Many assume that 3D printing is not yet a mature production technology. Not necessarily true. For example, all companies that manufacture hearing aid devices use 3D printing, as do the manufacturing plants that produce F-18 airplane parts and unmanned aerial vehicle parts for the military. The largest 3D printing technology business in the world, 3D Systems, has a U.S. Air Force grant to transition to manufacturing the next service jet, the F-35, with up to 900 3D-printed parts. Many 3D printing businesses begin production with almost no up-front capital, little inventory and zero cost to risk. In addition, time-to-market is quick, eliminating yet another common stumbling block for small business startups. 3D printing technology also supports todays high-in-demand devices for artificial intelligence, cloud computing and robotics. The highly accurate sensors that these require are produced inexpensively with 3D printing technology. Intellectual Property Issues in the Future of 3D Printing One of the biggest concerns about 3D printing is that it largely relies on easily transferable digital files. It is nearly impossible for people who hold the patents on some devices and technology to monitor who is printing their images. For example, it is very simple to download a 3D model file of the Star Wars character Yoda from a number of online databases. However, perhaps creative output authors should be more in fear of obscurity than piracy. The fact that people are widely pirating an image means that it is popular. Additionally, the vast majority of images that are pirated do not hurt anyone. If someone scans an image to make a handful of products, it is unlikely that he or she will make a significant profit from them. It is also important to keep in mind that the piracy risks that 3D printing companies do face are a fraction of the risks that businesses that rely on traditional manufacturing techniques face. As soon as a traditional tool is sent to Asia for manufacturing, for example, the intellectual property is relinquished. 3D printing requires a unique instantiation every time, which makes copying in exact form very difficult. Is 3D Printing Worth Pursuing? 3D printing and similar technologies have opened up creative opportunities not previously available. Currently, 3D systems work with over 100 different materials, enabling quick and inexpensive production of a multitude of products from wax for jewelry to composites for automobiles to varying alloys and metals for machinery. Despite the limitations that do exist with 3D printinglike limited materials, questionable accuracy and the size of printersexperts believe that the technology has great potential. While expensive machines are required to produce quality products, cheaper machines in the range of $1,200 are often used to create prototypes before producing the final product through more expensive means. 3D printing technology allows smaller companies with limited budgets to do the majority of their prototype work on their own, before sending the digital files to people who operate professional-level machinery to produce the final items. 3D printing has opened up more production and manufacturing possibilities in various sectors than have ever been available in the past. Those who learn how to use the technology will gain an edge over companies that use traditional production methods exclusively. They will also be able to further their projects and business ventures in ways that were never possible previously. Steve Erickson is vice president of sales and engineering at First American Plastic Molding Enterprise and Quad, Inc. WHATS NEXT? The future of 3D printing may even lead to 4D and 5D printing. According to WikiTrends.org, 4D printing will incorporate time as the fourth d imension, so that the objects [one] create[s] change their form when activated. And a ccording to author Pavel Somov at Medium.com, Life-form is 5D: If we printed a life form, itd be a 3D object that changes over time with its own field of awareness/subjectivity. Note: Stay on top of more 3D printing news at 3Ders.orgfrom a 3D printed iPhone-carrying shoe, to the Seattle Film Festival printing classic moments in movies via 3D, to the 3D printing of ears, human tissue. TalkBack@GreensheetBIZ.com

MERGERS & DIVESTITURES

Courier Corporation acquired FastPencil, Inc. RPI acquired DPI. EFI acquired the assets of printLEADER.

AWARDS
Graphics of the Americas Expo & Conference and Dscoop (the Digital Solutions Cooperative) were named in Trade Show News Networks 2012 Top 250 U.S. Trade Shows. Pitney Bowes Inc. was ranked one of the top outsourcing companies by the International Association of Outsourcing Professionals. Barry Wilson, chair of Pittsburg State Universitys Graphics and Imaging program, was named the Jerry Watson Educator of the Year by the Printing and Imaging Association of MidAmerica. Ricoh was recognized by the Ethisphere Institute as one of the Worlds Most Ethical Companies. Mark Steputis, CEO of Vision Graphics Inc., was named a finalist for CEO of the Year by ColoradoBiz magazine.

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GreensheetBIZ.com includes more in-depth coverage. Bold, underlined text indicates a link in the online edition. SCUTTLEBUTT & OTHER SUNDRY STUFF
Staples opened the Staples 3D Experience Centre in in the Netherlands (Staples.nl) last month. 3D printing service is, in our opinion, a logical extension of our service to customers. An accessible 3D Experience Centre, where everyone can become acquainted with this new service, is Staples's first step in offering a complete 3D printing services, said Oscar Pakasi, business development director at Staples Printing Systems Division , which is also responsible for design and development of Staples Easy 3D online platform. The new platform, first announced at Euromold 2012, is a new Staples service that allows customers to upload their designs to Staples' website, then pick up the 3D printed objects at their local Staples or have them shipped. 3D Systems, a global provider of 3D content-to-print solutions, including 3D printers, print materials and on-demand custom parts services for professionals and consumers, announced that its offering to sell shares of its common stock in an underwr itten public offering of approximately $250 million. The company intends to use the net proceeds from the offering to finance future acquisitions of other entities or their assets and for working capital and general corporate purposes. See 3DSystems.com Eastman Kodak Company announced a settlement agreement with the U.K. Kodak Pension Plan (KPP), its largest creditor, with respect to its Chapter 11 Plan of Reorganization. Under the agreement, which will be filed with the U.S. Bankruptcy Court, Kodaks Personalized Imaging and Document Imaging businesses will be spun off under new ownership to KPP. The agreement provides, among other things, for the spin-off of Kodaks Personalized Imaging and Document Imaging businesses to KPP for cash and non-cash consideration of $650 million. Certain proceeds will be used to support the emergence of Kodak from Chapter 11 and the growth of its Commercial Imaging business. The agreement also settles approximately $2.8 billion of claims by KPP against Kodak and certain of its affiliates. In one comprehensive transaction, Kodak will realize its previously announced intention to divest its Personalized Imaging and Document Imaging businesses and settle its largest legacy liabilit y, said Antonio M. Perez, Kodak chairman and CEO. The KPP transaction moves us past several key hurdles in our reorganization, resolving all potential claims worldwide, assuring continued operations outside of the United States, placing our Personalized Imaging and Document Imaging businesses with a new owner that recognizes their value and is focused on their growth and success, and providing the remaining liquidity we require to emerge from Chapter 11. See Kodak.com. PRIMIR (PRIMIR.org) announced eCommerce & Print Business Models, conducted by InfoTrends, which reveals insights into this service that a growing numbers of printers are now offering, and how manufacturers of equipment, software, consumables and supplies can provide them with support. The study projects that total print eCommerce shipments will increase from $17.4 billion in 2011 to $29.7 billion in 2016, for a five-year compound annual growth rate of 11.3 percent. Assuming total printing industry revenue of approximately $150 billion, eCommerce sales currently account for 12 percent of print revenues. ______________________________________________________________________________________________________

Rons Remarks Perspective from GreensheetBIZ Guest Contributor Ron Gilboa

o you need to diversify your offerings? The short answer is yes! Your customers are already changing, and you already support them with digital printing, finishing, mailing, fulfillment and other services that add value to pages beyond print. Now is the time to look beyond the printed page. And for some commercial printers, adding 3D printing services is a natural progression and part of a long-term strategy rather than a passing fad. Consider investing in an entry level 3D production device that will help you gain the skills you need before expanding your offerings. 3D printing applications are endless. The markets are diversified, with the equipment acquisition cost ranging in price from a few hundred to tens of thousands of dollars. The technology lends itself to short run production or prototyping, and its impact on production cost is similar to that of digital printing as compared with offset. In short runs, 3D printing could be as much as one sixth of the cost of conventional machining methods. Ironically, this aligns with the set-up cost curve of offset printing, where so much of the cost is built into the plates and make ready, which renders short runs less viable.

When contemplating which 3D solution to choose, plan on offering a service that alleviates your clients need for capital spending, internal skill set and operational complexity. This will ensure that your service is vital and considered as a value-added option. There are also opportunities to develop promotional applications on 3D printers that could be an extension of graphics applications, such as greeting cards and gift packaging. These will be aimed at marketing professionals who would like to enhance their go to market with personalized novelties. Ask, Do I have the skillset needed for manufacturing 3D objects? Though manufacturers of 3D production printers will support your new endeavor, you will still need to take the time to understand the technology, its material science and the basics of Computer Aided Design (CAD) software. This will require an investment in staff training, and possibly recruiting someone with a manufacturing background. Chances are that investing in 3D printing could turn into a related and profitable business, but the mantra of walking before running is a good one to keep in mind here. Ron Gilboa is director of the functional and industrial printing at InfoTrends.

GreensheetBIZ management/editorial team: Co-CEOSs Andy & Julie Plata; President Bob Tapella; Senior Editor Aaron Kiel; Associate Editors: Clint Bolte, Sid Chadwick, Noel Jeffrey, Dennis Mason, Katherine O'Brien, Raymond J. Prince, John Werner, Tom Wetjen, Robert Whitton and William F. Woods, Jr. ISSN: 0884-6901. OutputLinks Communications Group publishes GreensheetBIZ 2X monthly. Subscriptions: Info@GreensheetBIZ.com Licensed for exclusive use of the party shown in the address block. All rights reserved. (c) 2013. No reproduction or electronic storage.