Growth Opportunites in Additive Manufacturing Throughout Northeast Ohio

1. Additive Manufacturing
Asset Roadmap for NEOhio
Thanks to Generous Support from:
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2. NE Ohio’s Additive Manufacturing Supply Chain
Supply Chain Number of Companies
Materials 19
Systems/Systems
Parts
15
Design/Engineering 14
Production 85
Post Processing 7
Third Party Research
& Development
18
Workforce 19
Third Party Testing 9
Value Added 3
Sourcing 6
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 Part production is key regional strength
 Materials and Design/Engineering are key growth assets
 Several entrepreneurs making desktop printers and system parts
 Software appears to be an underrepresented sector in NE Ohio

3. Use Segmentation of AM Parts Production
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PROPRIETARY AND CONFIDENTIAL
McKinsey, Wohlers 2014 Prototyping is common and widely used as design/engineering & marketing tool
 Direct part production growing rapidly in specific markets
 Tooling represents large short term growth opportunity

4. Growth Opportunity for NE Ohio: Tooling & Fixtures is Key Short
Term Opportunity
 Interviewed 20+ parts & tooling manufacturers in NE Ohio
 Prototyping remains the most common use of AM for design visualization
 Identified 14 use cases where AM can provide significant economic value creation
 Tooling & fixture examples in NE Ohio:
• Production of mold inserts for tire molding to enable design complexity
• Blow molding tooling to reduce design cost
• Fixtures for window profile welding to reduce reject rate
• Thermoset mold inserts for redesign cost reductions
• Low cost thermoset mold tooling to allow capture of low volume production
• Lower cost inspection fixtures for pumps
• Low cost fixtures for metal stamping
• Low cost FDM printed inserts for low volume trial of thermoplastic injection
mold redesign
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Barriers to Adoption
 Many clients see the value in 3DP,
but cannot sustain the technology
internally for a variety of reason
• Operationalizing 3DP requires
investment in development
• Lack of understanding
• Capital investment in
immature systems
• Technical issues remain

5. NE Ohio Market Opportunity for Tooling and Part Production is
Substantial
 Tooling is the near term for growth opportunity, and parts production as a longer term opportunity
 NEO’s strength in plastics and metals fabrication provides significant economic opportunity from adoption
of AM for tooling applications in the short term and part production longer term
3 Costs and Effectiveness of Additive Manufacturing, NIST, Dec. 2014
4 Data from FirstResearch
5,6Data from Mergent Intellect
7 Data from Congressional Research Service
$730B4
$63B5
$17B6
Obtainable
Market
Total U.S. Market for plastics manufacturing, metal fabrication and polymer materials industries
NEO Total Addressable Market for plastics manufacturing, metal fabrication and polymer materials
industries
NEO Available Market: Specific segments of the NEO plastics manufacturing, metal fabrication
and polymer materials industries identified by the Project Team as having a good opportunity for
economic impact
Portion of the Available Market that can realistically be penetrated by additive manufacturing. A
recent study sized the US AM tooling opportunity at $8.8B in 2020. Ohio is 2nd in the US in tool,
die & mold output with ~12% share7. We estimate a market potential of >$1B for AM tooling
production in Ohio by 2020
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6. Growth Opportunity for NE Ohio: Direct Part Production Holds
Promise for Long Term Growth
 60% growth rate in direct production compared to 30% overall growth rate
 Two fastest growing market segments globally are aerospace and
biomedical devices
• Boeing and Airbus using hundreds of parts for weight reduction,
design complexity, cost savings
• Custom hearing aid ear molds and custom fit cases/ Invisalign molds
for dental braces
 Tech Belt use cases in aerospace:
• Alcoa and GE both produce laser sintered aerospace components
• Alcoa reported to us wide use in soft tooling, fixtures, prototype
tooling for mold core casting, and even steel tooling that enabled
significant part consolidation
 Regional use cases in biomedical:
• QED uses FDM in production of low volume MRI coil enclosures
• Osteosymbionics produces cranio-facial implants via AM
• Cleveland Clinic uses AM for patient-specific tissue modeling and pre-
surgical planning 6
Barriers to Adoption
• Aerospace Tier 1s cannot afford to risk
use of subs for mission critical parts
• AM has too much variation to
allow use of service bureaus
• Customers do not understand AM
design rules – unrealistic expectations
• Closed material models by system
suppliers stifle design growth
• Material availability limits growth in
biomedical uses
• Use in large volume markets like
automotive requires improvements in
cost and productivity

7. Materials is a “Legacy Strength” in Northeast Ohio
• 4X the Concentration of Materials Suppliers than US Average
• More than 50% of Ohio’s Materials Jobs Located in the Region
World Class Research Institutes including
• Case Western Reserve University – Macromolecular Science
• University of Akron – Polymer Science & Engineering
• Youngstown State University - Materials Science
NE Ohio AM materials capability is mostly in polymers
• Village Plastics (Norton) acquired by 3D Systems to produce filament
• Other filament makers in Chesterland, Youngstown, Brecksville (Lubrizol)
• New open source machines may provide more potential for market entry
AM metal powder capacity in Tech Belt
• Alcoa, Carpenter, Puris, Additive Metal Alloys
Growth Opportunity for NE Ohio: Materials
Global Addressable Market
$768M in 2015, up 20% from 2014
 Polymers represent $550M, up
20% over 2014
 Metals reached $88M, an 80%
growth rate over 2014
 Growth was largely driven by
aerospace and bioscience
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Market Barriers
 “Closed Systems” between
OEMs and Suppliers
 Market Knowledge
 Existing Patent Restrictions
Wohlers

8. 8
Growth Opportunity for NE Ohio:
R&D and Engineering Design Assets
 Understanding of design and engineering
strategies for AM was
identified as one of the most critically needed
skill sets for industry
 NE Ohio is home to strong design assets
 The region has a history of creating strong
engineering talent and currently is well-
positioned to support the specialized skills
required for AM.
 Emphasis should be placed on
attraction/retention of industrial design
centers to keep NEO-trained talent in the
region
NE Ohio is home to some of the nation’s leading
programs supporting research and education in AM:
 YSU
 America Makes
 Case Western Reserve University
 University of Akron
NE Ohio is home to strong AM workforce development
programs:
 Cuyahoga Community College
 Lorain County Community College
 Stark State
 Cleveland State
The broader TechBelt region boasts the additional
strength of Carnegie Mellon, Pitt, Penn State and
Robert Morris Universities

9. NEO benchmarking against other regions of US
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 Midwest cluster should be
explored
• Pittsburgh - metals, R&D &
software assets; home to Alcoa
and GE AM development
• Michigan – attracting hardware
OEMs – Voxeljet, SLM, Envisiontec
Strengths:
Universities with strong focus on growing 3DP designers
Mfg supply base in plastic & metal fabrication with
strong workforce
Presence of America Makes
Growing entrepreneur network in AM
Strong biomedical research community
World class polymer materials assets
Weaknesses:
Lack of software/IP talent initiatives
Limited venture funding
Limited knowledge base in mfg community
No major AM machine companies in region
Not enough OEM design centers
Opportunities:
Better integration with America Makes to inject
IP and provide development resources
Support use of AM as productivity tool to enable
reshore and comeptitive advantage for supply
base
Retain/attract design talent
Threats:
Other states more proactive in attracting direct
investment
Design centers locating elsewhere in midwest
Closed systems inhibit participation by materials sector
Loss of design/ engineering talent to other regions
NE Ohio Position
in Additive
Manufacturing

10. Vision
By 2023, Northeast Ohio will be recognized as a leader in:
Design and engineering for additive manufacturing
Using additive manufacturing for productivity enhancements
AM entrepreneurial investment and growth
AM materials innovation
Attraction of significant FDI related to the core activities of America
Makes
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11. Next Steps
Take the survey on the website
• Background
• Seeking candidates for further interviews
• Feedback
• Areas of interest
Receive the full report upon completion of the survey
Link to survey: www.neohioamcluster.org
Contacts:
• Barb Ewing – bewing@ybi.org
• Tim Fahey – tfahey@teamneo.org
• Scott Deutsch – scott.deutsch@ncdmm.org
• Dave Pierson – dave.pierson@magnetwork.org
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