Purchase Advances GE's Manufacturing Story

Wide-moat

To date, GE’s additive manufacturing story has largely been about cost savings, as rapid prototyping enhances the design process and uncovers opportunities to eliminate parts and reduce materials and machining costs. To date, GE’s Aviation segment has been the biggest beneficiary; however, over the next decade, GE expects an additional $3 billion-$5 billion of cost savings as new applications reach beyond the Aviation segment into the rest of GE’s portfolio.

The addition of Arcam and SLM also highlights the growing importance of additive manufacturing in GE’s digital industrial story, illustrated by its Predix-enabled Brilliant Factory concept. Scaling each business will catapult GE not only into one of the largest industrial users of metals-based 3D printing, but also into a leading equipment manufacturer for industrial uses, a market the company expects will grow at a 20% CAGR over the next decade. This could add nearly $1 billion in revenue by 2020, with 60% from equipment sales and 40% from powders and other aftermarket parts and services.

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