AM Today In this module, we will examine the current state of development of AM systems, and market penetration, and industry and consumer acceptance data. Module 1c – AM Today 1 1

Additive Manufacturing: Now 2002 – Commercial system for PBF by electron beam Launched 2003- Aircraft engine manufacturers start exploring applications of AM 2011 -- Some Industries switch over to 100% AM operations Hearing aid; dental industry 2013 – FDA approves first patient specific cranial device 2014 -- Carbon 3D introduces a continuous photopolymerization system Claims it is 100 times faster than commercial 3D printing methods 2015 – GE receives FAA approval for the first AM-produced part for a jet engine Slides 2 and 3 summarize the current state of development and acceptance in the industry for a variety of applications – ranging from nutrition, aircraft manufacture to building structure. Some significant milestones were: the 100% conversion to AM by the hearing aid industry in 2011, FDA approval of a patient specific cranial device in 2013 FAA approval of jet engine parts in 2015 First building structure under commercial use in 2015 Demonstration of AM’s application in food service industry in 2015, at a trade show in London First 3D printed biostructures implanted for test in animals in 2016 Module 1c – AM Today 2 2

Additive Manufacturing : NOW 2015 - First ever functional structure using 3D concrete technology 1400 sq.ft. hotel suite located in Philippines. 2015 -- First ever 3-D printed, five course meal served Prepared in a pop-kitchen at the 3D Printshow 2015, in London 2016 - First 3D printed tool produced in space In Additive Manufacturing Facility aboard the Space Station 2016 -- First 3D printed bio-structures successfully implanted in test animals Ear, bone and muscle structures made by a North Carolina Hospital 2016 – four lasers simultaneously creating one part Slides 2 and 3 summarize the current state of development and acceptance in the industry for a variety of applications – ranging from nutrition, aircraft manufacture to building structure. Some significant milestones were: the 100% conversion to AM by the hearing aid industry in 2011, FDA approval of a patient specific cranial device in 2013 FAA approval of jet engine parts in 2015 First building structure under commercial use in 2015 Demonstration of AM’s application in food service industry in 2015, at a trade show in London First 3D printed biostructures implanted for test in animals in 2016 Module 1c – AM Today 3 3

Additive Manufacturing: NOW Still used for pre-production Rapid prototyping (swiftly reprint and test parts) Test and optimize (both internally and externally) Supplement for traditional manufacturing when: Parts are highly customized Parts are too difficult or impossible to make traditionally Low volume, high value parts AM continues to be used for pre-production work – for rapid prototyping and producing parts for test and optimization. AM is economically attractive for this type of work because it has replaced laborious, time consuming and expensive manual construction / fabrication of prototypes, molds, dies, etc.   AM is also finding increasing use in the manufacture of low volume, highly customized, or complex parts. AM is providing momentum to a new economic model in manufacturing. It will eventually replace manufacturing based on “economies of scale” with “economy of one.” Module 1c – AM Today 4 4

Additive Manufacturing Trends This graphic illustrates the sharp rise of the number of AM machines sold in the period 1988 to 2012. An unbroken and incessant increase in sales, except for the period representing the great recession of 2006-2008. Annual sales in 2012 had reached nearly 8000 units. Module 1c – AM Today 5 5

Additive Manufacturing Trends Slide 6 shows the trend in the sale of metal-working AM machines. Like the trend on over sales, this data also show a steady increase in the sale of AM machines that use metal as feed stock. In 2012, about 190 metal working machines were sold. The smaller numbers of metal AM machines sold is largely due to the high cost over more simple printers (like FDM). Metal machines are easily into the 6-figures, while an FDM printer is under $1,000 typically. Module 1c – AM Today 6 6

Additive Manufacturing Trends These data show the astounding increase in the world-wide sales of desk-top printers, those priced below $5,000 in the four-year period 2012 to 2015. In 2015 nearly 280,000 printers were sold world-wide. Module 1c – AM Today 7 7

Additive Manufacturing Trends How Consumers Use parts built on AM Systems The use of AM-made parts in various functions performed in industry and commerce is shown in this pie-chart. As shown, there is significant use as functional parts (29%), fit and assembly (19.5%), and the combined categories of tooling and patterns. Tooling and pattern functions use nearly 26 percent of the parts. Lesser share is used in education, research, visual aids and models. Wohlers Report, 2014, Wohler Associates Module 1c – AM Today 8 8

Additive Manufacturing Trends Industries Served by AM manufacturers and Service Providers This chart shows the breakdown of industries served by AM manufacturers and AM service providers. The top four industries making the most use of AM are: Industrial / Business Machines (18.5%), Consumer products / Electronic (18%), Motor vehicles (17.4) and aerospace (12.3%) Wohlers Report, 2014, Wohler Associates Module 1c – AM Today 9 9

Additive Manufacturing Trends Percentage of Industrial AM System Usage This chart shows the use of industrial AM systems by major manufacturing countries. AM manufacturing has the highest penetration in US, followed by Japan, Germany and China.   Other data show that German companies have the majority share in the worldwide sale of AM machinery and systems. Germany has 60 to 70 percent of this market. Module 1c – AM Today 10 10