Feature first published in the November/December 2023 edition of 3D ADEPT Mag. The interviews remain in that original context.
“I know we need an industrial 3D printer but I am not sure if we will be able to amortize the cost of such an investment in our company. Any idea where I should start looking?” an engineer new to the industry once asked me.
Once you know Additive Manufacturing is the right path for you, the next step can be quite intimidating. What’s most intimidating here is the cost consideration that appears at many levels of the decision-making process.
Back then, I didn’t know exactly what I could tell this engineer. After thorough reflection – and obviously, after many discussions with different machine manufacturers, I should have told him to weigh the pros and cons of each acquisition model. At that specific time, for their specific needs, buying was probably not the ideal option.
One of the most common assumptions we make in manufacturing is that we should buy our own AM machine. This is not a bad assumption in itself but when you start thinking about the manufacturing area, the number of operators you would need to operate the machine, the maintenance, and other related equipment (materials, post-processing, software, etc.) needed in your manufacturing value chain, that need can easily become a utopian dream – especially if your company does not have an unlimited budget at hand.
In such cases, it could be smart to explore subscription as well as leasing or renting options.
What does each option involve?
Under a lease, the user makes payments for an agreed term. Return, renewal and any purchase option depend on the contract. Renting therefore does not automatically confer a right to buy the machine at the end of the term.
At the time this feature was written, US-based NCP Leasing was cited as a specialist in financing AM equipment. The feature mentioned equipment from ExOne, Renishaw, Stratasys and 3D Systems. These historical examples do not constitute a current commercial offer.
A distributor may also provide access to equipment. The feature cited UK-based Tri-Tech 3D and Additive-X (formerly GoPrint 3D) as rental providers. Available technologies, minimum terms and short-term rental options should be confirmed with the supplier.
Under an equipment subscription, the vendor may retain ownership and bundle use of the machine with software, support and maintenance. Included services depend on the offer. Carbon already offered its M1 through a subscription at its 2016 launch. Software subscriptions, such as those cited at Markforged and EOS, should be distinguished from subscriptions that include a printer. The original $20,000 figure has been removed because its billing period and contractual scope were not specified.
The feature also cited HP and Desktop Metal among manufacturers exploring subscription offers. The terms and availability of those programs should be checked for the project concerned; this is not an updated product catalogue.
“Rent and subscription models can be an appealing way to acquire exclusive access to a 3D printer with reduced risk through low or no initial capital expenditure. Renting may be the most flexible, but of course, this comes at a higher price over the long term. Subscription models can often be extremely competitive, however many are based on a minimum threshold of throughput that may be hard to guarantee without an established market. Purchasing a machine can be a daunting prospect, however, in the long term this can offer the most flexibility to the purchaser. A salient point is that the correct acquisition model for a user will often be determined situationally depending on their circumstances and potential markets,” Tom Cornthwaite, from DiManEx, told 3D ADEPT Media. DiManEx provides a platform that converts traditional, physical supply chains into future proof, digital supply chains.
Purchase is quite simple to understand as you invest money in a device that you own completely. What needs to be assessed here is the set of factors that could amortize the cost of the 3D printer into the projected cost per part, before you decide to order the machine.
To this, Cornthwaite replies: “whilst amortizing capital costs through increased part prices is common in other manufacturing methods, care needs to be taken in doing so for 3D printed parts. Amortization is straightforward if there is a high demand for very similar parts, however, this is unlikely to be the case when utilizing the flexibility afforded by 3D printing! Overall, one needs to establish a part cost model that takes into account machine costs and depreciation whilst allowing flexibility to cope with demand and potential failures that can occur more often when applying 3D printing to new applications.”
“Our foremost consideration is the quality of the part, prioritizing it over the cost of the machine. As a 3D printing bureau, our commitment is to provide the highest standard of parts using cutting-edge AM technology, irrespective of the financial outlay. Additional factors such as material performance and repeatability are crucial, ensuring our clients can rely on consistent results time and time again,” Nick Allen, CEO at 3DPRINTUK states. 3DPRINTUK is a 3D printing service provider that prefers to purchase all their machines. “Over the past decade, we consistently observed that investing in top-quality equipment has consistently proven to be a wise decision, yielding long-term benefits. Achieving a near injection-moulded finish with Additive Manufacturing (AM) requires not only the right printer but also substantial upfront investment in finishing equipment. Often, the combined cost of the finishing equipment is 2 to 3 times that of the 3D printer itself, a crucial factor not always immediately apparent,” Allen adds.
The interviewees’ opinions and the finishing-equipment cost ratio of two to three times the printer price describe their experience; they are not a rule for every workshop.
The table sets out the main comparison criteria. Total cost and actual flexibility depend on the contract, usage and included services.
| Model | When to consider it | What to check |
|---|---|---|
| Purchase | A sustained need, identified workload and capacity to operate and maintain the equipment. | Upfront investment, cost per part, staffing, maintenance, post-processing, obsolescence and resale value. Time and labour remain relevant costs. |
| Lease or rent | Access to a machine for a defined period, with payments spread over time. | Total commitment, maintenance, insurance, return conditions and any purchase option. Tax and accounting treatment depend on the contract and applicable rules. |
| Subscription | Access to equipment or associated services within the scope of the offer. | Minimum term, cancellation, throughput commitments, consumables, included updates and ownership. Unrestricted cancellation and hardware upgrades are not automatic. |
Periodic payments do not automatically mean an expense without a balance-sheet asset. For entities applying IFRS 16, a lease generally results in recognition of a right-of-use asset and a liability, subject notably to short-term and low-value exemptions. Tax treatment depends on the applicable rules.
If you’re an AM beginner whose business case is not clear yet, I would recommend following DiManEx advice:
“Working with an experienced AM partner in the first instance is a great way to de-risk the process of developing and manufacturing parts for 3D printing. By letting an experienced partner guide the process, a lot of information can be gleaned about the most suitable machines, materials and even design for 3D printing, without the commitment and cost of acquiring a machine in the first instance. This can give the end user an opportunity to prove and grow their demand sufficiently to then potentially consider acquisition of their own machine to improve their costs further. It also gives an opportunity for a business to adapt their systems and processes to working with 3D printing as opposed to traditional methods. Quality systems and process flows may need alteration which can take time!”
In the end, whether you purchase, lease, rent or subscribe to a plan, you should keep in mind that there is no right or wrong answer, there is just one that works for your project or not.
This dossier was first published in the November/December 2023 edition of 3D ADEPT Mag.
Review note: purchase, rental and cancellation terms clarified; comparison table revised to avoid accounting and tax generalisations; a price without a defined scope removed; original magazine year corrected to 2023.
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