September 9, 2013 Update

DJIA:14,923 S&P 500:1,655 NASDAQ:3,660 Gold:$1,385 Oil:$110.00 EURO:$1.32 YEN:99.53

The Manufactured Art of the 3D Printer

The art of printing dates back to 3000BC, when the early Mesopotamian civilization began using round cylinder seals to reproduce an idea onto clay tablets. The Chinese started woodblock printing in 200AD, and the Japanese introduced the stencil long before the Germans created the flat-bed printing press in the mid-15th century. As with all forms of technology, innovative human intellect has renovated the space to meet the ever-changing needs of society. The latest invention in the sector has completely revolutionized the perception of printing and its use in modern society. In 1986, Chuck Hall from 3D Systems Corp. (NYSE: DDD) created a process in which a computer could manufacture an object through the use of ultra-violet light, which Hall concluded could both create and shape each layer of the object digitally and, as such, “print” it in a 3D manner. 26 years have passed since its birth, and the demand for 3D printers have grown in among corporations and consumers. BMW, Ford, and GE now use 3D printing to enhance their assembly lines, as researchers have found that small parts manufactured in 3D last longer and are also cheaper to mass produce. Airbus and Boeing have adopted the manufacturing process now that 3D printers can work with aerospace grade plastic. Nearly every toy Mattel manufactures is printed in 3D, which is a huge upgrade from the costly process the company used before. Even the healthcare industry has found 3D printing extremely useful, since it allows for the reproduction of an object in a customized and unique way. In 2012, Align Technology printed 17mm plastic transparent aligners, the popular alternative to braces. In fact, most hearing aids are printed three-dimensionally. 3D printing has even become a hobby for consumers, whose demand accounts for about 5% of the market. As reported by Wohlers Associates, it took 20 years for the industry to be worth $1B and five years for it to double. As of FYE12, 3D printing was a $2.1B industry that grew 29% YoY. By 2017 the consulting firm expects 3D printing to be a $6B industry, and judging by the recent momentum this forecast has the potential to meet expectations. America outsources the majority of their manufacturing jobs, but analysts believe that 3D printing could cause this trend to reverse. The explosion of the smart phone and app world have proven that individualism is a staple in consumer culture. People want to feel special. Consumers want to feel as though their things are designed for them. 3D printers allow companies to mass-produce uniquely in the cheapest and quickest way that has been designed so far. I think that 3D printing has the potential to restore the art in American manufacturing. 

Domestic News

• Market Update  Futures are trading up after optimistic data from Asia, despite the Syrian shivers.

International Updates

Asia

• Market Update Markets are in the green after upbeat economic data.
• Japanese GDP beat expectations, April-to-June GDP grew 3.8%.
• News that Tokyo will host the 2020 Olympics sent the Nikkei up 2.5%.
• China reported that exports picked up 7.2% YoY in August, a sign the economy is stabilizing, while inflation numbers were tame with the CPI rising 2.6% YoY and the PPI deflation eased (assuming the numbers are honest). 

Europe

• Market Update Markets are mostly trading down as investors catch the Syrian shivers. 

Corporate

• Apple (AAPL) is up 1.2% in premarket trading as the stock hovers around $500 per share. 
• Citigroup has initiated coverage on Luluemon (LULU) with a buy rating & a $90 price target.