Exploring New York City's Economic Sectors
INDUSTRY TRENDS& INSIGHTS
3D PRINTING ON THE RISE IN NEW YORK CITY | JULY 2013
Highlights
P.1 NYC’s 3D printing clustercontinues to expand
P.2 Employment has riseneight fold since 2010
P.2 $30 million in venturecapital was raised last year
P.3 Design schools train 2,400new students each year
Center for Economic Transformation
Many of the 3D printing companies located in New York are focused on
making 3D technology accessible to consumers through online services
and the development of easy-to-use “desktop” printers. In contrast to
industrial-grade 3D printers that have been used in engineering and
manufacturing for years, these “desktop” machines are slightly less
sophisticated but also less expensive, making the technology accessible
to a new category of users.
A scan of New York City reveals that there are already at least 20 local
private companies, research facilities and collectives that use 3D printers
directly in their supply chain or design process;b two actually manufacture
the printers themselves. Additionally, there are at least 10 academic
institutions in New York (seen among blue dots in Figure 1) that have
integrated 3-D printing technology into their curricula. They are teaching
hundreds of new students each year how to model in 3D software and
print out designs using state-of-the-art machines. The development of this
skilled labor pool is one of the key drivers of growth in the industry
in NYC.
Anchoring the 3D printing cluster in New York are Shapeways and
MakerBot Industries, which are headquartered here and employ over 300
New Yorkers.3 (See Figure 2 below). They added two significant new
locations in 2012, with the MakerBot Retail Store opening in NoHo4 and
Shapeways’ new “Factory of the Future” opening in Long Island City.5
Both companies have seen increasing demand over their first few years
of operation. Brooklyn-based MakerBot Industries estimates that it has
around 25% market share of the desktop 3D printer industry and that
there are more than 15,000 of its desktop 3D printers in use today by
engineers, designers, researchers, and “people who just like to make
things.”6 Shapeways, which instead offers on-demand 3D printing
services, supports over 8,000 designer shops and had already printed and
sold over 1 million objects as of 2012,7 with the goal of increasing this to
3 to 5 million annual objects as the new capacity of its Factory of the
July 2013 | 1
3D PRINTING, the process of creating three-dimensional objects by applying successive layers of thermoplastics,metals, or other materials,a is one of the newest high-growth industries to center itself in New York City.This emerging technology represents an industry in its own right, but also promises to reinvent existing manufacturing, catalyze new industries and revolutionize product prototyping and design. Along with otheradvanced hardware and software technologies, it may help shift manufacturing output back to the U.S. Arecent market report by Gartner, Inc. suggests cost reductions in industrial grade 3D printers are driving mainstream adoption as businesses use them to customize production and design.1 According to WohlersAssociates, the global 3D printing industry, including all facets of 3D printing technology, took in $2.2 billionlast year, up 28.6 percent over 2011, and revenues will grow to $6.5 billion by 2019. 2
New York’s Role
Figure 1: 3D Printing Use in New York City
a See a list of popular materials here: http://www.shapeways.com/materialsb The Maker Map, an interactive open source project which aims to create a global
database of maker resources is available here: http://themakermap.com/
Solidoodle Shapeways MakerBot
2010
Emp
loym
ent
400
350
300
250
200
150
100
50
02011 2012 2013
Figure 2: Total Employment Among Leading 3D PrintingCompanies in New York City
Source: MakerBot, Shapeways, Solidoodle
Despite these promising signs, the 3D printing industry is still in an early
phase of development. A recent article in The Economist compared the
current state of the 3D printing industry to that of the personal computing
community in the early 1990s.11 While it is still unclear whether 3D printing
will be able to create the type of disruption that has occurred through the
advent of personal computing, there are some parallels between the two
technologies. Like PCs, 3D printers began as bulkier, less-precise machines
that were vastly expensive. As recently as 2007, the cheapest 3D printer
available cost roughly $30,000, making the technology too expensive for
anyone but the largest companies.12 But, due to an evolution of
improvements and cost reductions, 3D printing has permeated into more
and more industries. In fact, 3D printing is currently well established in many
heavy manufacturing and high-tech industries ranging from automotive
manufacturing, the military and medical and pharmaceutical companies.13
However, for 3D printing to realize the level of adoption seen in the PC
revolution, the industry will need to create products that are priced within
range of traditional 2D printers and are reliable and easy to use. A major
turning point in this evolution occurred in 2009 when MakerBot debuted
its first desktop 3D printer, which was geared toward the consumer
market and priced under $2,000. Since then, several other companies
have emerged offering similarly priced products, including Brooklyn-based
Solidoodle and California-based Printrbot. User interface improvements,
another advancement key for growing consumer adoption, have come in
the form of native 3D design programs and online, open source 3D design
environments. In May 2012, 3D printing reached the mainstream retail
market when Staples began carrying a 3D Systems Cube printer priced
at $1,299.14
To mirror the PC industry’s development into a complex ecosystem of
software, hardware and service, 3D printing innovators need investment.
One indicator of the continued growth of 3D printing in New York City is
the venture capital that flows to local companies. Over the last four years,
Shapeways and MakerBot raised over $57 million in early and mid-stage
VC funding. In April 2013, Shapeways received an eye-catching $30 million
in Series C funding from top venture capital firms Andreessen Horowitz,
Union Square Ventures, Lux Capital and Index Ventures.15
In June 2013 it was announced that MakerBot would be acquired by one
of the leading national 3D printing players, Minneapolis-based Stratasys,
Ltd. Through the acquisition, MakerBot will become a subsidiary of
Stratasys but will continue to run its operations from its Brooklyn location.
The size of the deal, totalling $403 million in company stock, is noteworthy
and is an indication of the market’s optimistic perspective on the
future of consumer 3D printers.
July 2013 | 2
Future comes online.8 The availability of this service has helped catalyze a
local community of 3D printing hobbyists. Shapeways estimates that 277
of the shops operating on its online marketplace are run by NYC
residents, up from 204 in 2012 and just 89 in 2011.9 This demonstrates
how 3D technology can allow individuals to quickly turn their creativity
into economic output for NYC.
Additionally, although still nascent, this economic activity has led to
speculation that 3D printing, along with digital fabrication technologies
like CNC milling, laser cutting and others, may help to bring more
manufacturing back to the United States.10 Indeed, the major 3D printing
companies in NYC have seen significant employment gains over the past
four years, growing from around 50 in 2010 to 350 so far in 2013.
(See Figure 2)
MakerBot
Tota
l VC
Fu
nd
ing
($M
illio
ns)
2010
$35.0
$30.0
$25.0
$20.0
$15.0
$10.0
$5.0
$0.02011 2012 2013
Shapeways
Figure 3: Venture Capital Raised by the 3D Printing Industryin New York City
Source: Crunchbase.com
Parallels with the Personal Computing Revolution
Solidoodle, A Brooklyn-based 3D Printer Manufacturer
Founded in Brooklyn at the end of 2011 by Sam Cervantes, a
former GE aeronautical engineer who had been MakerBot’s COO,
Solidoodle has emerged as another Brooklyn-based player in the
low-cost 3D printing sector. The second generation Solidoodle 3D
Printer that debuted at New York Tech Day in April 2012 is one of
the more affordable options on the market today.16 Since its
release, the company has seen a dramatic increase in orders,
shipping 2,000 printers in its first year.17 Solidoodle’s strategy has
been to focus on affordability and ease-of-use rather than striving
for bigger, faster printing capabilities.
Despite a strong commitment to cost-cutting, Solidoodle
manufactures all of its machines at its Carroll Gardens headquarters
in Brooklyn, even using its own printers to make some of the parts.
Paradoxically, Solidoodle has been able to cut costs even while
manufacturing products in the U.S. and it attributes part of this
success to the 3D printing technology itself and its application in-
manufacturing.18 In a recent interview, Cervantes explained how
a $10,000 investment in a fleet of 20 Solidoodle printers—exactly
what the company employs in its own factory—can allow a
manufacturer to produce 400 parts a day.19 On a small scale, this
process is cheaper than other manufacturing options, such as
injection molding, and allows for quick and efficient changes to
the design by simply updating the software input. During the early
phases of product development, when companies are trying new
ideas and responding to customer feedback, such flexibility can be
crucial. In using its own 3D printers to manufacture its product,
Solidoodle has illustrated the potentially “disruptive” impact that
3D printing could have.
So why is this activity occurring in New York? One important factor is the
complementary relationships the industry has with another community
that is ingrained in the local environment: the design industry. While the
3D printer is not yet a widely used household product, it has already
become a popular tool among engineers and, especially, designers. Every
member of New York’s top design institutions has a lab with 3D printing
capability, and most have seen increasing demand over the past few years
as the machines have become more reliable and easier to use. One such
lab is the NSF ATE Fuse Labc of CUNY City Tech’s Department of
Architectural Technology, which has recently undertaken the challenge
of constructing their very own, very large 3D printer capable of
printing resin-based building structures. This project, named “ONE:ONE”
in reference to the scale ratio, will give undergraduate students the
chance to learn exactly how the hardware and software components
of 3D technology function.21 (See box above for further discussion of
3D-printed structures).
Each year these top design schools churn out hundreds of individuals
familiar with 3D technology who are ready to become the future
customers and even employees of 3D companies, joining a New York
design community that consists of over 39,000 designers and 3,900
design firms as of 2012.22
In addition to these formal academic institutions, New York City also has
a relatively large array of membership facilities and research collectives
that provide access to 3D printing and other rapid prototyping
technologies. New York City’s ecosystem of resources that support
product development and fabrication continues to grow: notable launches
this past year include CCNY’s Zahn Center for Entrepreneurship in
West Harlem and the New Lab in the Brooklyn Navy Yard. These
facilities will further develop the 3D printing expertise and contribute to
the large pool of talent in New York City, satisfying one of the key
conditions of a successful industrial cluster as described by Michael Porter
and others.23 In addition, this rich environment allows for the rapid
transfer of knowledge and sharing of ideas that spurs innovation,
making local companies more productive.24 As these forces gain
momentum, more and more 3D printing firms and jobs are likely to
emerge from the local environment. More still will feel the draw to locate
here. –Jeffrey Bryant
Figure 4: Summary of Selected NYC Design School 3D Printing Capabilities
SchoolYear 3D
TechIntroduced
StudentsUsing
3D Tech
Types ofPrinters
ColumbiaGSAPP25
2003 300ZCorp Spectrum Z510Dimension 3D Printer3D Systems Cube
CUNY CityTech26
2004 70ZCorp Spectrum Z5103D Systems ZPrinter 650MakerBot Replicator 2X
FIT27 2011 35 Dimension uPrint Plus
NYU AdvancedMedia Studio28
2006 8003D Systems ZPrinter 650Objet Connex 500MakerBot Replicator
Pratt29 2008 1160ZCorp Spectrum Z3103D Systems ZPrinter 650MakerBot Replicator
Last year, NYCEDC in collaboration with the Hudson River Park Trust
sought innovative proposals to repair the many decaying pilings along
New York City’s 565 miles of coastline. There are hundreds of these
wooden and steel columns that buttress the City against storm surge,
erosion and general wear and tear, but many of them are in extreme
disrepair and require New York to spend millions of dollars each year
to reinforce or replace them.
In April 2013, NYCEDC announced that the winning solution came
from D-Shape, a famed Italian company that specializes in concrete
3D printing. Their idea is to scan each piling using 3D laser scanning
technology and then 3D print concrete reinforcements that are
custom fitted and have coral-like organic features on the exterior that
offer habitat for sea life. These supports can be printed off-site,
floated out into the harbor on an inflatable raft and then fastened to
each piling by skilled divers as they sink into the water. D-Shape
estimates that their supports will save the City $2.9 billion. As an
added benefit, this approach also will allow local artists to add an
aesthetic touch to pilings without a significant increase in cost, which
may help rejuvenate the waterfront.20
July 2013 | 3
The New York City Advantage
c NSF ATE stands for National Science Foundation Advanced Technological Education, whichis a federal program that provides funding for institutions that focus on “the education of technicians for the high-technology fields that drive the nation's economy.”
Note: List not exhaustive.
3D Printing Takes First Prize at the NYCEDC Change The Course Competition
July 2013 | 4
Acknowledgements
Jenifer Howard, Director of PR, MakerBot Industries
Jim Allen, Director, Shapeways, Inc.
Carlito Bayne, Director of the Output Shop,
Columbia University GSAPP
Brian Ringley, NSF ATE Fuse Lab Technology Coordinator,
CUNY NYCCT
Jana Duda, Technology Services Manager, Fashion Institute
of Technology
Shelly Smith, Manager, Advanced Media Studio
Mark Parsons, Director of Production and Technology,
Pratt Institute of Architecture
Yahea Abdulla, Director of PR, Solidoodle
Sources
1 Gartner, Inc., “Gartner Says Early Adopters of 3D Printing Technology
Could Gain an Innovation Advantage Over Rivals.” March 26, 2013.
Available at: www.gartner.com/newsroom/id/2388415
2 Spar Point Group, “Global 3D printing industry revenue reaches
$2.2 billion.” May 22, 2013. Available at:
www.sparpointgroup.com/News/Vol11No22AM2012/
3 Email correspondence with Jenifer Howard, Director of PR,
MakerBot Industries on May 15, 2013; Email correspondence with
Jim Allen, Director, Shapeways on June 3, 2013.
4 MakerBot Industries, LLC., “MakerBot Announces New Retail
Store.” Press Release, September 19, 2012. Available at:
http://downloads.makerbot.com/makerbot/MakerBot_Store_press_release.pdf
5 The Shapeways Blog, “Factory of the Future: Our Plan to 3D Print 3
to 5 Million Unique Products Per Year in NYC.” October 18, 2012.
Available at: www.shapeways.com/blog/archives/1692-factory-of-the-future-our-plan-to-3d-print-3-to-5-million-unique-prod-ucts-per-year-in-nyc.html
6 MakerBot Industries, LLC. “MakerBot Wants to Know: What Will
You Digitize?” Press Release, March 8, 2013. http://makerbot-blog.s3.amazonaws.com/wp-content/uploads/2013/03/Rls_MakerBotDigitizerf.pdf
7 Smith, Kevin. “Now Anyone Can Use 3D Printing To Make Money.”
Business Insider, December 19, 2012. Available at:
www.businessinsider.com/shapeways-3d-printing-2012-12
8 The Shapeways Blog, “Factory of the Future: Our Plan to 3D Print 3
to 5 Million Unique Products Per Year in NYC.” October 18, 2012.
Available at: www.shapeways.com/blog/archives/1692-factory-of-the-future-our-plan-to-3d-print-3-to-5-million-unique-products-per-year-in-nyc.html
9 Email correspondence with Jim Allen, Director, Shapeways, Inc. on
June 3, 2013.
10 Bits Blog, “Disruptions: On the Fast Track to Routine 3-D Printing.”
The New York Times, February 17, 2013. Available at:
http://bits.blogs.nytimes.com/2013/02/17/disruptions-3-d-printing-is-on-the-fast-track/
11 The Babbage Blog, “3D Printing - Difference Engine: The PC all over
again?” The Economist, September 9, 2012. Available at:
www.economist.com/blogs/babbage/2012/09/3d-printing
12 3D Makers, “3D Printing History” posted March 9th, 2013.
Available at: http://blog.3dmakers.com/3d-printer-history/
13 Gartner, Inc., “Gartner Says Early Adopters of 3D Printing Technology
Could Gain an Innovation Advantage Over Rivals.” March 26, 2013.
Available at: www.gartner.com/newsroom/id/2388415
14 Staples Investor Relations, “Staples First Major U.S. Retailer to
Announce Availability of 3D Printers.” Press Release, May 3, 2013.
Available at:
http://investor.staples.com/phoenix.zhtml?c=96244&p=Rss-Landing &cat=news&id=1814995
15 Copeland, Michael V., “The $30M Bet That Shapeways Becomes a
Factory for Everyone.” Wired Magazine, April 23, 2013. Available
at: www.wired.com/business/2013/04/30-million-bet-that-shapeways-becomes-a-factory-for-everyone/
16 CNET, “The Best of NY Tech Day, a showcase of startups.” April 19,
2012. Available at: http://news.cnet.com/8301-17938_105-57416439-1/the-best-of-ny-tech-day-a-showcase-of-startups/
17 Solidoodle Press Releases Page, accessed on June 6, 2013.
Available at: www.solidoodle.com/press-releases/
18 Conversation with Yahea Abdulla, Director of PR, Solidoodle on
June 6, 2013.
19 Geek Tech Blog, “Interview: Solidoodle founder sees a coming
3D-printed age.” Tech Hive, March 20, 2013. Available at:
www.techhive.com/article/2030232/interview-solidoodle-founder-sees-a-coming-3d-printed-age.html?page=2
20 NYCEDC Website, “Change the Course Winners,” accessed on June
6, 2013. Available at: www.nycedc.com/waterfrontcompetition
21 NYCCTfab Website, accessed on June 6, 2013. Available at:
www.nycctfab.com/#!1to1app/c1xuq
22 “Growth by Design: The Powerful Impact & Untapped Potential of
NYC’s Architecture & Design Sectors.” Center for an Urban Future,
June 2011.
Available at: http://nycfuture.org/pdf/Growth_by_Design.pdf
23 Porter, Michael E. (1998) Clusters and the New Economics of
Competition. Harvard Business Review, 77-90.
24 Saxenian, Anna L. (1996) Regional Advantage: Culture and
Competition in Silicon Valley and Route 128. Harvard University Press.
25 Email correspondence with Carlito Bayne, Director of the Output
Shop, Columbia University on May 15, 2013.
26 Email correspondence with Brian Ringley, NSF ATE Fuse Lab
Technology Coordinator, CUNY NYCCT on May 31, 2013.
27 Email correspondence with Jana Duda, Technology Services
Manager, Fashion Institute of Technology on May 15, 2013.
28 Conversation with Shelly Smith, Manager, Advanced Media Studio,
NYU on May 20, 2013.
29 Email Correspondence with Mark Parsons, Director of Production
and Technology, Pratt Institute of Architecture on May 30, 2013.
July 2013 Industry Trends & Insights
About NYCEDC
The New York City Economic Development Corporation is the City’s primary engine
for economic development charged with leveraging the City’s assets to drive
growth, create jobs and improve quality of life. NYCEDC is an organization
dedicated to New York City and its people. We use our expertise to develop,
advise, manage and invest to strengthen businesses and help neighborhoods thrive.
We make the City stronger.
About NYCEDC Economic Research & Analysis
The Economic Research and Analysis group from NYCEDC’s Center for Economic
Transformation conducts economic analysis of New York City projects, performs
industry and economic research on topics affecting the City and tracks economic
trends for the Mayor, policy-makers and the public as a whole. As part of its goal
of providing up-to-date economic data, research and analysis to New Yorkers, it
publishes a monthly New York City Economic Snapshot as well as the Trends &
Insights series of publications covering such topics as Tech Venture Capital
Investment, Borough & Local Economies, and Industry Economic Sectors. It also
sponsors the Thinking Ahead series of events that brings together thought
leaders and stakeholders to discuss and debate key issues shaping New York City's
economic future.
Economic Research & Analysis Group
Michael Moynihan, PhD, Chief Economist & Senior Vice President
Eileen Jones, Assistant Vice President
Eileen Tumalad, Assistant Vice President
Andrea Moore, Project Manager
Jeffrey Bryant, Project Manager
Kristina Pecorelli, Project Manager
For more information, visit nycedc.com/NYCeconomics
Contact us at [email protected]
Center for Economic Transformation