in Additive manufacturing

#Arcam, $AMAVF: high activity in #Aerospace sector, #3D

Arcam AB LogotypeThe aerospace supply industry is still in the early days of a long-term boom in orders say industry participants at a recent suppliers summit hosted by GE Capital at GE Aviation’s headquarters in Cincinnati, Ohio. The large majority of participants, who were split about evenly in serving wide-body and narrow-body commercial aircraft platforms said they plan to increase their workforce over the next 12 months (84%), expect to win new long-term supply agreements in the next three years (91%), and expect aircraft deliveries to continue to grow at least through 2016 (76%).

We are in the midst of a ‘super-cycle’ of aerospace manufacturing,” said Gib Bosworth, managing director of aerospace financing at GE Capital, Corporate Finance. “Advanced manufacturing practices will play a very important role in how these parts and components are made, so we at GE see a valuable role we can play in helping these suppliers stay on top of this manufacturing technology curve as well as have the capital they need to build production capacity.”

Today, additive manufacturing is only 0.02 percent of total global manufacturing, so there is a lot of opportunity going forward,” said Greg Morris, leader of additive technologies for GE Aviation. “I think it’s great that the majority of the survey respondents are already incorporating this technology or plan to in the near future and I expect that number will continue to rise.

When asked about their manufacturing future, 87% said they will be investing in new manufacturing equipment over the next three years. Regarding incorporating additive manufacturing, 27% are already doing it, 10% expect it to happen within the next year, and 37% expect it in the next one to five years.

M&A activity is expected to be very robust over the next 12 to 24 months, with 92% of respondents said they expect it to increase. “The response makes sense. Record high backlogs for commercial aircraft give buyers an unprecedented level of visibility,” said Yair Reiner, aerospace and government services analyst with GE Antares Capital, a leading provider of M&A financing to private equity-backed middle market companies. “Plane makers want suppliers to become both stronger and leaner, which encourages and rewards consolidation. And defense spending, a significant thorn for the industry in recent years, is showing signs of stabilizing.

GE Capital’s survey was conducted on October 28, 2014 at the company’s Commercial Aerospace Leadership Forum, held at the GE Aviation Learning Center in Cincinnati, Ohio. The 80 respondents were suppliers and manufacturers to the aerospace industry, and private equity professionals active in the aerospace industry. (Source:  http://www.pcbdesign007.com/)

One of the companies that stand to benefit from these trends is Swedish additive manufacturing equipment maker Arcam. The company has been optimistic about its capability to secure a volume order for its EBM systems before year end 2014 and it is not unlikely that these will come from the aerospace sector, where Arcam already has a strong foothold.

Nordic Investor

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