In the following video, 3D printing specialist Steve Heller interviews Magnus René, CEO at Arcam AB ORD (NASDAQOTH:AMAVF), a Swedish-based metal 3D printing company that utilizes a proprietary metal 3D technology called electron beam melting, during EuroMold 2014, the world's largest 3D printing conference held in Frankfurt, Germany, in November. During the segment, René touches on the role that regulators play in terms of 3D printing adoption rates, Arcam's long-term vision, and his long-term outlook for the 3D printing industry at large.
A full transcript follows the video.
Steve Heller: In terms of the regulations, obviously electron beam melting seems very well-suited for the healthcare industry.
What are some of the challenges associated with the regulatory authorities, getting new technologies up to speed from previous generations or previous manufacturing technologies? I was wondering if you could comment on the healthcare landscape and the aerospace landscape, and what that means for adoption rates.
Magnus René: On the medical side, we've been on the market since 2007, so we are well aware of and familiar with the regulatory landscape. We have -- or rather, our customers have -- a lot of products on the market already.
We think that the regulatory challenges are mainly with regards to the design of the products. Different designed products have to be approved in different ways. We see less regulatory challenges with the manufacturing method itself, since we know how it can be proven.
On the aerospace side, it's similar. It's a lengthy process for our customers to make sure that all their regulatory needs are met every time, every day. But once we are through that process, we are good to go.
Heller: At The Motley Fool, we are long-term, business-focused investors. We're not [as] concerned with the quarterly results. We're more concerned with the long-term trajectory, so we don't pay as much attention to whether or not you're meeting Wall Street expectations. That's not important to us.
What's important to us is where this company's going over the next five, 10 years, so I was wondering if you could share with us that long-term vision of where this company is going, and how investors should think about this company, going forward.
René: We run this company with a long-term strategic vision where our vision is to replace manufacturing, first in advanced materials but later on also in other materials, so the vision is very long-term.
The execution is much more short-term, because we are in a very dynamic environment, so we have to operate the company in a very agile way. Operatively, we run with not longer than 24-month plans, typically.
Heller: I see. My final question for you, I wonder if you could just provide an overall general outlook of where you think the 3D printing industry as a whole is going over the long term. Where is this industry taking us?
René: I think you will see more and more production applications. You will see us replace, on the metal side, typically castings and forgings. Again, our goal is to replace all castings and forgings; maybe not the largest, but normal-sized castings and forgings.
On the plastic side, which obviously I don't know that much about, but I would envision that plastic additive will replace injection molding, for example, over time.
You will see additive manufacturing gradually replacing, step by step, conventional manufacturing, casting and molding type of businesses.
Heller: Thank you so much for your time, Magnus.
René: Thank you.