3D Printing Is Ready to Rocket UP
For everything you read in financial media designed to make you panic, there is an America 2.0 solution at the ready.
For instance, I just read America 1.0 manufacturing companies are facing supply chain issues and inflation of raw material prices.
To me, it was obvious. The solution: 3D printing.
Remember, I laid out how 3D printing could remake factory floors here.
I think as adoption spreads, we’ll see 3D-printing tech rocket up as a result in one, three, five years.
You’re going to see people come in and bid up our stocks — like 3D Systems Corp. (NYSE: DDD) and Proto Labs Inc. (NYSE: PRLB).
It’s been tough. However, the rewards sitting through this will be HUGE. See why I believe our Fourth Industrial Revolution stocks are going up, up and UP:
I saw this story. It says a new wave of inflation and disruptions hits U.S. factory floors. If you read the article it talks about a company that needs a form of raw material called pig iron which is in short supply because part of it is sourced from Ukraine.
I am not going to talk about that part of it because when I read that story I actually see something different. If you wanted a hot take on high inflation, commodities and all this stuff, sadly you have come to the wrong place. However, it is important.
Will 3D Printing Transform Businesses?
When I read that story I was telling our team that it made me think of the early days of COVID. If you remember back in March and April 2020 when the lockdowns were being implemented, restaurants had to shut down. At that moment in time, the vast majority of restaurants had limited online ordering.
Just two years later I can tell you that certainly every restaurant I go to have online ordering, takeout, integrated their businesses with delivery apps like DoorDash and Uber Eats. In other words, COVID digitally transformed their businesses. They are completely different today.
If you were to do a survey — and I have seen surveys — there are restaurants that generate nearly 70% of all their orders through digital services. Meaning someone is either going to their website and ordering, ordering through an app or using a delivery service.
In other words, in two years there has been a radical transformation of this business. When I was reading this story about disruption and inflation on the factory floor, you know what I thought. I thought this business could really use to hire people who know how to operated 3D printers.
If you read the story, you will see in it the upsides of using 3D printers versus the old school manufacturing style which is where you have to buy a lot of raw material and you have to have some large customers. You make things in big bulk because your costs otherwise simply don’t work.
You have to make things in a fairly large batch. Without that, it’s not worth running your plant, factory or operation. Then contrast that to a 3D printer. A 3D printer uses a tiny smidge of any commodity. Even a metal a plastic is only a tiny amount. It’s customized.
You don’t need to have a very large order to be able to fulfill that order. Then if you make a small mistake you don’t face a huge loss. You can just go back and correct that one mistake and reprint it. Then, you can produce it anywhere.
One of the issues raised in the article is that the employer is struggling to keep employees because many of them drive from one hour away. With high gas prices many of them do carpooling. If one person decides they don’t want to go, it forces the other person to quit.
This business is facing the kind of struggle that restaurants were in March and April of 2020. There is a solution available. 3D printing is one that would allow for them to accept smaller orders, fulfill in real time without needing a giant amount of commodity that’s in short supply whose price has spiked up.
How Can 3D Printing Benefit Companies?
The point of bringing this up is I believe that in the U.S., manufacturing in the United States is about to go through a radical transformation just like the restaurant business did in March and April of 2020 when people were forced to change.
Between the supply chain disruptions, which I’m sure caused this business lots of orders, and now the inflation of raw materials, a number of these businesses are going to pivot and think the old way is no longer possible. We are going to have to do something in a new way and what are the solutions available.
For sure the owner of this business talks about how he’s losing orders as a result of not being able to get this pig iron, not being able to get his employees to come in to work. As you might know, 3D printers can be operated remotely. You don’t need to be there to operate them.
I believe what is going to happen is clients of this business are eventually going to search out and find who can fulfill their order. They need 100 parts today and 100 parts next week, not 10,000 all at once. I believe they are going to come to people who have implemented 3D printing and other America 2.0 and Fourth Industrial Revolution technologies.
This is unfolding. Even though the prices of the stocks of 3D printing companies that we have in our portfolio — 3D Systems, Stratasys, Proto Labs and even more in our premium services — these folks in the background are seeing more and more people adopt this solution.
It means the orders are accumulating. In the quarters to come, you are going to see their sales are going to keep rising and rising. For sure, you are going to see Wall Street investors come in and start to bid these up. It will be slowly at first. However in 6 months, 9 months, 1 year, 2 years, you are going to see the stocks of these companies that make 3D printers and use 3D printers rocket higher.
That’s my opinion. I’m not guaranteeing it. It’s my opinion and not advice. But that’s why we’re sticking with our 3D printing stocks. I would tell you these things have gotten hammered even as their adoption is rocketing up, their use is rocketing up. I believe as we are about to go through a radical transformation in how we do things as a result of this inflation out there.
It goes to a broader point I want to make. Everything you read in the financial media is designed to make you panic. Whether it be high oil prices, high food prices, lack of people to come in and work. There is an America 2.0, Fourth Industrial Revolution solution that is ready and available and can be scaled up.
It doesn’t need 10 more years of development. These are things that are ready to go. Just like digital ordering was ready to go when restaurants need it, manufacturing, 3D printing is there for you. I believe you are going to see that in 3, 6, 9 months more and more people tell you they adopted it.
Bottom line, it’s been tough. It’s been a tough time. However, the rewards of sitting through this are going to be huge. I can see our portfolios, not just 3D printing stocks but our America 2.0, Fourth Industrial Revolution stocks keep going up for years and years to come.
Be strong hands. Be bullish. Be optimistic. Be positive. I am. Be BOP. Come back next week. Until then, this is Paul saying bye.
Results Are In! You Are…
Strong Hands! You didn’t let the market volatility shake you out.
Hey, many used the low prices (even 75% dips) to “average down” — buy more shares at low prices!
Great job! We don’t think you’ll regret this as America 2.0 is unleashed and our stocks rebound.
You are definitely the Strong Hands Nation! ✊
Editor, Profits Unlimited