GE is making significant investments in novel materials and processes that maximize the potential offered by Additive Manufacturing. After decades of outsourcing capability, we now see companies rebuilding their manufacturing strength. GE will "insource" more manufacturing content.
GE is making significant investments in novel materials and processes that maximize the potential offered by Additive Manufacturing. After decades of outsourcing capability, we now see companies rebuilding their manufacturing strength. GE will "insource" more manufacturing content.
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2013 - GE Capital - Additive_Manufacturing_Fall_2013
GE is making significant investments in novel materials and processes that maximize the potential offered by Additive Manufacturing. After decades of outsourcing capability, we now see companies rebuilding their manufacturing strength. GE will "insource" more manufacturing content.
GE is making significant investments in novel materials and processes that maximize the potential offered by Additive Manufacturing. After decades of outsourcing capability, we now see companies rebuilding their manufacturing strength. GE will "insource" more manufacturing content.
Industry Research Monitor: Additive Manufacturing 1
Explore Financing Solutions at www.gecapital.com/americas
Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 Contents The Return of Manufacturing for Competitive Advantage ................................................................................... 2 Q&A with Christine Furstoss, Technology Director, GE Global Research Center ............................................ 8 Q&A with David Abbott, Sr. Staff Engineer/Technologist, GE Aviation ............................................................11 M&A & Financing Highlights ........................................................................................................................................14 Resources/Links ..............................................................................................................................................................16 GE is making signicant investments in novel materials and processes that maximize the potential offered by Additive Manufacturing. Breakthroughs in this class of advanced manufacturing are enabling the development of products featuring performance characteristics that are virtually impossible to replicate with traditional manufacturing methods. Additive Manufacturing Redening Whats Possible Industry Research Monitor: Additive Manufacturing 2 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 The Return of Manufacturing for Competitive Advantage Manufacturing is a major source of competitive advantage. After decades of outsourcing capability, we now see companies rebuilding their manufacturing strength. Companies used to make investment decisions purely on labor cost. However, there are new materials that can revolutionize performance, and precision technologies and high-power computing are transforming how we manufacture. GE will insource more manufacturing content. We are investing in processing technologies such as additive manufacturing. Jeff Immelt, GE Chairman and CEO; Excerpt From Letter to Shareholders 2012 GE Annual Report Given all of the recent attention in the mainstream media, one might think that Additive Manufacturing (interchangeably referred to as AM or 3D printing) is a recent breakthrough in advanced manufacturing. But in fact GE has been working with the technology for many years and the know-how has been around for more than three decades. It is only recently however, thanks to the publicity generated by several public manufacturers of 3D printers and likewise growing media coverage and investor interest, that 3D printing has enjoyed the media spotlight. What was once known only in the shadows of the industrial world as a tool for rapidly prototyping new designs has now developed into a generational phenomenon within reach of everyone. Estimates for the size and growth of the market for Additive Manufacturing hardware and services vary widely, but across the board all suggest varying degrees of rapid growth. According to IBISWorld, U.S. based suppliers of 3D printers and related services generated combined revenue of $2.4 billion in 2012, which is expected to grow nearly 14% annually through 2017. Source: IBISWorld CORPORATE VISION Jeff Immelt GE Chairman and CEO
Manufacturing is the new basis for competitive advantage for industrial companies and for that matter countries. The notion of manufacturing has changed and the era of labor arbitrage is ending. You can make whatever you want, whenever you want. Entrepreneurs inhabit the manufacturing space like never before. Manufacturing is being digitized, decentralized and democratized. GE is in the lead of most, if not all of this. We are making big investments at the GE Global Research Center in high-performance computing, novel processes and additive manufacturing. 16pt font, 50% black 6 tint Lines=25% black 6, 1pt weight on stroke Bars=PMS485 Lines=50% black6, 3pt weight on stroke 0 1 2 3 4 5 6 2012 2013 2014 2015 2016 2017 Services Hardware 3D Printing Hardware & Services U.S. Suppliers Revenue ($ Billions) Industry Research Monitor: Additive Manufacturing 3 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 DEFINITION: ADDITIVE MANUFACTURING
n Process of joining materials to make objects from 3D model data, usually layer upon layer, as opposed to subtractive manufacturing methodologies.
*ASTM E2792-009 Standard Terminology for Additive Manufacturing Technologies The Allure of Additive Manufacturing Simply put, 3D printing uses Computer Aided Design (CAD) les as a blueprint to build physical objects by repeatedly applying thin layers of materials in a build-up or additive process. But 3D printing is not a single technology. Depending on the material and objective of the nal application, there are at least seven different additive processes commercially available. Nonetheless, the basic concept of building-up layer-by-layer is common across all of the different additive processes. Contrast this to traditional manufacturing processes where material is often removed from a larger form in a subtractive process by cutting, milling, grinding or drilling. Since there are no wasted shavings or other excess materials, the additive process substantially lowers the cost of raw materials. Although more exotic materials such as ceramic matrix composites are likely to be used in the future, the most common materials currently used in additive manufacturing are generally in the classes of plastics and various industrial metals such as Aluminum, Nickel and Steel. Aside from the potential for lower costs of materials, labor and other overhead, the primary allure of the additive process is centered on the ability to shorten cycle times and rapidly transition product concepts into physical products. What used to take weeks or months to develop a physical prototype, is now taking hours or days. Additionally, the additive process can accommodate nearly limitless degrees of customization of complex design geometries as well as the manipulation of physical properties throughout the product such as heat tolerance, density and weight. David Joyce, president and CEO of GE Aviation, says that additive technology liberated his business from the limitations of machining. It gives the designer a whole different palette of colors to paint with, and truly on a whole new canvas. But as much as additive processes are well suited for highly customized, intricate and relatively low volume applications, the technology is not necessarily well suited for all applications. Very large objects as well as most homogenous applications with simple geometries requiring high volume production runs (tens or hundreds of thousands of units) and very fast throughput are currently still better served by traditional manufacturing processes. In that sense, the additive process is best thought of as a complementary manufacturing technology rather than a near-term replacement for all traditional manufacturing processes. Not surprisingly much of the mainstream media most closely associates 3D printing with the potential for consumers to manufacture almost any common household item (plates, utensils, coffee mugs, garden gnomes, toys and all kinds of tchotchkes) at a moments notice in their homes. With consumer oriented 3D printer hardware generally priced around $2,000 and some low-end printers selling for as little as $100, the technology is already very much within reach of many consumers. Although the early consumer adopters are still mostly hobbyists, broader consumer adoption is likely to accelerate as equipment prices continue to fall and the breadth of usable materials and printable designs continues to expand. INTRODUCTION TO ADDITIVE MANUFACTURING
To see a brief video outlining the basics of additive manufacturing at GEs Global Research Center, please click on the link below:
Video Intro to Additive Manufacturing Industry Research Monitor: Additive Manufacturing 4 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 Printed Lunch Anyone? The list of industries adopting or at least experimenting with 3D printing is rapidly expanding into areas such as clothing, jewelry and even food. To date however, the jump from prototype to production components used in mission critical applications has been most common in the aerospace, medical and dental device, automotive and electronics industries. Applications in these industries usually require relatively small quantities of high value parts that are lightweight, strong and geometrically complex. Take for example, the forthcoming (expected to enter service in 2016) LEAP (Leading Edge Aviation Propulsion) jet engine produced by CFM International, a joint-venture between GE and Frances Snecma. The LEAP will be the rst commercial jet engine to incorporate fuel nozzles printed by a laser that sinters ultra-thin layers of a Cobalt- Chromium alloy powder. Using conventional manufacturing techniques, each fuel nozzle would have been assembled with up to 20 parts welded together. Using additive processes, the fuel nozzles will now be grown as a single piece that is 25 percent lighter and ve times more durable than its conventionally manufactured counterpart. Weight reduction is particularly important in aviation applications given that just a single kilogram reduction of an aircrafts weight can mean fuel savings of up to $3,000 per year. LEAP reduces fuel burn by 15% over its predecessor engine. That adds up to several million dollars saved per year per plane, says GE Aviation spokesman Rick Kennedy. Overall, GE estimates that by 2020, there will be some 100,000 3D printed parts in service within GE (GE9X) and CFM (LEAP) engines. In the area of medical and dental device manufacturing, some companies have already moved rapidly toward manufacturing hearing aids, prosthetics and dental braces using additive processes. But no doubt the most eye opening recent developments in additive manufacturing have occurred in the eld of medical research where the boundaries of material usage and functionality have been pushed the furthest. For instance, the technology has allowed engineers to mimic the physical and functional properties of bones with the ability to create structures that are more porous at the center and denser near the perimeter. Even more remarkable, scientists have already successfully bio-printed live kidney and liver cells into miniature replicas of organs that within a laboratory setting have demonstrated the ability to perform most of the same functions as the real things. While still many years away from being used for human transplants, the possibility of no longer having to wait on a long list for a lifesaving organ transplant can at least be contemplated. ADDITIVELY MANUFACTURED FUEL NOZZLE CFM LEAP JET ENGINE Industry Research Monitor: Additive Manufacturing 5 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 Next Steps in the Advancement of Additive Manufacturing Even the most well versed experts in additive manufacturing admit that they really have no idea exactly what types of exotic applications the technology will lead to 20 or even 10 years from now the future is wide open to imagination with very few boundaries to the limits of whats possible. However, what seem clearer are the near-term steps necessary for the technology to continue advancing toward its long term potential. These next steps include the continued maturation of an industry ecosystem. Increasing adoption in both the commercial and consumer markets will follow the development and increased access to an entire ecosystem of equipment distribution, services, maintenance, materials supplies, software development etc. We want to develop an ecosystem of designers, engineers, materials scientists, and other partners who can learn with us, says Michael Idelchik, who runs GEs advanced technologies research. We have a number of products that we are going to be launching and we want to challenge people to get into business with us. If the ecosystem grows, the entire industry will grow. Additionally, most 3D printed products are currently made from a single material and are used primarily for a single, static function. Experts believe that eye opening breakthroughs in additive applications will be driven by the continued progression toward additive processes that incorporate numerous materials. For example, using a variety of materials, one section of a part could be optimized for heat tolerance while another section could be optimized for strength. Also, new applications will develop when printed products are capable of multiple functions - the ability to adapt and change their function in response to changes in operator input or automatically in response to changes in the operating environment. GE & ADVANCED MANUFACTURING
To see a brief commercial overview of GEs vision for Advanced Manufacturing, please click on the link below:
Video: GE & Advanced Manufacturing RECENT HEADLINES ASSOCIATED WITH ADDITIVE MANUFACTURING Sigma Labs, Inc. announced that its wholly-owned subsidiary, B6 Sigma, Inc., was among the winners of a $5 million grant by the U.S. Department of Commerces National Institute of Standards and Technology (NIST). German 3D printer company VoxelJet led for a $100 million IPO. For the second year in a row, 3D Systems has made Fortune Magazines 2013 list of the fastest-growing companies. The company ranked second in the tech category and fth overall out of the 100 global companies listed. The MIT Technology Review recently named Additive Manufacturing as one of the top 10 breakthrough technologies of 2013. Read the article highlighting GEs use of the technology by clicking on the link below:
MIT Technology Review Industry Research Monitor: Additive Manufacturing 6 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 GE Leading by Example While Remaining Open to Suggestion For more than two decades hundreds of engineers and scientists at GEs Global Research Center (GRC) have been exploring the boundaries of additive manufacturing, materials science, thermodynamics, nanotechnology and jet engine design among many other research pursuits. Underscoring GEs commitment to infuse advanced technologies into its own manufacturing processes, in 2011 the company established a new lab at the GRC entirely dedicated to additive manufacturing. The new lab galvanizes GEs effort to develop and propagate additive manufacturing applications across many of the companys business units including aviation, energy, oil and gas, and healthcare. Scientists at the GRC have also teamed up with engineers at GE Aviation to develop applications for advanced materials including a new kind of ceramic (Ceramic Matrix Composites CMCs) that outperforms the most advanced metal alloys. Jet engine components made from CMCs weigh two-thirds less than similar components made from advanced alloys, but can perform at temperatures as high as 2,400 degrees Fahrenheit, where most alloys grow soft. In addition to 3D printed parts, the LEAP will incorporate advanced materials such as turbine components made from CMCs as well as fourth generation carbon ber fan blades. Altogether, the usage of parts made from advanced materials and additive processes will reduce the overall weight of each LEAP engine by up to 1,000 pounds. GEs efforts in additive manufacturing were signicantly bolstered by the recent acquisition of Morris Technologies as well as its sister company Rapid Quality Manufacturing. The two companies specialize in the use of metals in additive manufacturing for rapid prototypes as well as volume production of high-value components for the aerospace, energy, oil & gas and medical industries. Now operating within GEs Aviation division, Morris and Rapid were no strangers to GE and for several years prior to the acquisition had been supplying parts to GE Aviation, GE Power Systems and the GRC. In addition to supplying GE, the two companies have made everything from lightweight parts for unmanned aerial vehicles (UAVs) for the U.S. military to hip replacement prototypes. DID YOU KNOW? By 2020, there will be 46,000 GE jet engines in service, up from 4,100 in 1990. 1
Prior to its rst test in early September 2013, CFM had already received nearly 5,500 orders for the LEAP valued at more than $70 billion. Each LEAP jet engine will incorporate 19 additively manufactured fuel nozzles. 1% reduction in fuel consumption would save the global aviation industry $30 billion over a 15 year period. 2 1 GE 2012 annual report
2 GE Industrial Internet 101 Industry Research Monitor: Additive Manufacturing 7 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 While engineers at GE Aviation have been experimenting with a new way to make jet engine parts for over a decade, other GE businesses are now coming up the curve on 3D printing and pushing the technology into new areas. GE Power and Water recently acquired a 3D laser printer that is ve times as powerful as any other at GE and can work with two lasers simultaneously. We are learning how to use this technology, says Jon Schaeffer, senior manager for materials and processing engineering for Power and Water. Weve got to spread the word and change the design paradigm that metallurgists, designers and manufacturing teams have had for a long time. Recently, GE has also tapped into the crowdsourcing phenomenon by challenging the Maker community to develop designs that can be used to additively manufacture complex parts for medical equipment as well as a redesigned bracket used for jet engines with a goal of making it 30 percent lighter than its conventionally manufactured incumbent. The bracket is a key component as it supports the weight of the engine and must withstand strong vibrations during ight. GE calls these challenges additive manufacturing quests and within weeks of the initial posting received more than 700 additive design submissions. We have entered into a new era of manufacturing that is leveraging the proven power of open innovation, said Mark Little, chief technology ofcer at GE Global Research. Additive manufacturing is allowing GE, together with the maker community, to push the boundaries of traditional engineering. These nalists have demonstrated what can be achieved by embracing this more open, collaborative model. In the interviews that follow, we discuss with GE experts in materials sciences and aviation manufacturing how GE is developing technology that will lead to many new possibilities in the next generation of manufacturing. New Yorks Museum of Modern Art recently included in its Architecture and Design Collection a GE90 jet engine fan blade made from carbon ber composites (pictured above). Industry Research Monitor: Additive Manufacturing 8 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 Q&A with Christine Furstoss Director, GE Global Research Center We recently sat down with Christine Furstoss, Technical Director for Manufacturing and Materials Technologies at GEs Global Research Center (GRC), for an overview of GEs vision for Additive Manufacturing.
Michael Zimm: My rst question has to do with the type of materials that are currently in use or thought of as most conducive for AM (Additive Manufacturing) applications as the technology stands today. Is it titanium or other metals? Is it plastic or a combination of materials? And just to follow on with that, what does the materials roadmap look like in GEs R&D labs?
Christine Furstoss: Right now we are building on the extensive base that has been developed over the past thirty years for AM using plastics. These are plastics that are used to make original prototype parts to be able to quickly get a good view of what a conguration may look like. So what we are doing now is taking all of that great learning and applying it to true engineering materials. So, whether that is a titanium based material, a nickel based material or cobalt based. Any true engineering material used in heavy duty industrial components is open for use in AM. But that doesnt mean that we are ready to go and print everything up in the world. There are still some major hurdles that we have to face but also so many exciting possibilities. In most types of manufacturing processes where you start with a piece of material be it from a forging or a casting or an extrusion, you know the properties - so you know how strong it is, you know how tough it is. What is really so exciting to me is that when you open AM to the world of engineering materials in the future, specically metals and potentially ceramics, you will have the ability to truly create new material properties specically tailored for those parts. Michael Zimm: So just to follow that up a little bit, what type of parts are currently best suited or conversely not well suited for current AM technology either by application, size of the part, the weight, thermal properties, small or large lot sizes etc. Can you speak a little bit to that?
Christine Furstoss: Sure. There are a lot of great existing processes that will continue to be used within GE and across the industry - advanced machining processes, drilling processes and processes for parts that t optimally into existing tooling. Well continue to work on controlling those processes with more accuracy than ever before. So, despite all of my passion for 3D printing, it wont take over the world. Simple shapes probably will continue to be produced faster and more economically by more traditional manufacturing processes. That being said, we are going to continue to push those, we are going to continue to want ner features and be able to do things faster and with more exibility and agility. Global Research will continue to invest in those technologies. But when you are looking at components that currently are made from multiple types of fabrications, perhaps you are brazing together multiple pieces. You have to weld just for that accessibility, to get different types of features across the part throughout the cross-section, throughout the length of the part. That is where 3D printing can really open up new possibilities because you do not have to limit yourself by having to access INTERVIEW WITH Christine Furstoss Director, GE Global Research Center Christine Furstoss is the Technical Director for Manufacturing and Materials Technologies based at GEs Global Research Center in Niskayuna, New York. Christine is responsible for working with leadership and R&D teams across the Company, as well as with strategic partners, to assess, set strategy for growth, and implement critical process and materials developments for industry-leading products and manufacturing. In addition to working with the product teams across the Company, Christine leads approximately 450 researchers at GE Global Research; her team is located across North America, Europe, and Asia. Christine joined GE in 1989. In addition to GE Global Research, Christine has worked in numerous divisions of GE Power & Water. She received her B.S. and M.S. degrees in Materials Engineering from Rensselaer Polytechnic Institute (RPI). Industry Research Monitor: Additive Manufacturing 9 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 DID YOU KNOW? Each year GE les approximately 2,000 patents in the U.S., which puts the company in the top 10 for innovation. GE is the worlds largest user of additive technologies in metals. To date, there are more than 300 3D printers in use across GE. 3 that certain area. Because you are literally building layer by layer, you can put features in that in the past had to be made in a multi-piece component. Thats where initially we see the ability to dramatically change some of our component designs with 3D printing. But we are also nding that because some limitations of current tooling or processes are removed with 3D printing, we are able to reduce the weight of some parts by up to 30%. Michael Zimm: Im also curious about any other technical issues that may be gating factors to the adoption of AM for mass production of all types of parts. For instance, any limitations around printer technology that you or others are currently working on that would improve the speed or increase the size of parts that can be accommodated. Whats being done in that area?
Christine Furstoss: I would say that there are four factors that will truly enable Additive Manufacturing to incorporate more types of materials and more types of parts. For simplicity Ill limit the discussion to looking at extending AM to metallic parts. As I mentioned, whats exciting and also a challenge is that we are building up material properties at the same time we are building the geometry or the form. But, the software and the predictability of outcomes to be able to do that on a large scale just arent quite ready. And thats not a surprise. In the casting industry and the forging industry it has taken decades to really be able to predict how a process leads directly to the properties you get out of the material. We are really just at the birth of that with AM. But I think with all the advances in high performance computing and a dramatic increase in the number of simulations that we can look at, we shouldnt take decades anymore. But it is not going to be a simple path. So, thats one of the biggest gaps that we are working on across GE and with our strategic partners. The second area I would like to mention is the equipment itself. Again, the equipment used with plastics for rapid prototyping, making things that dont have to hold industrial tolerances, are already very good and from very good suppliers. However, the equipment for metallic applications is still emerging and we are working closely with suppliers, providing them with feedback on what we are nding as we try to use these machines 24 hours a day 7 days a week using multiple types of materials. The industrialization of a new technology is always a challenge and something thats not surprising, but something that we have to pay attention to. The third area is the fact that there arent a lot of materials that are made specically for AM. Materials need to be developed that are specically made for the additive process. We are starting to work with some material suppliers, which we hope will encourage other material suppliers to come forward. The fourth and nal area to mention is that as a gating factor, the whole ecosystem around the industry still has to evolve. Not only companies who make printers but people who service them, people who inspect them, people who make materials etc. thats all still in the very early stages. So, at GE we are trying to initiate activities including hosting supplier summits and working with local governments to encourage companies to get engaged with AM. We need to grow that ecosystem and we need to grow it quickly. GES INVESTMENT IN RESEARCH AND DEVELOPMENT GEs annual spending on R&D has more than doubled over the past 10 years to more than $4.5 billion in 2012. 16pt font, 50% black 6 tint Lines=25% black 6, 1pt weight on stroke Bars=PMS485 Lines=50% black6, 3pt weight on stroke
Source : GE Annual Reports
1 2 3 4 5 2002 2007 2012 GEs Spending on Research & Development ($B) 3 GE Global Research Center Industry Research Monitor: Additive Manufacturing 10 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 Michael Zimm: We know that GEs Global Research Center (GRC) is one of the worlds most respected R&D labs. But Im curious to know if the GRC has a mechanism or business model for monetizing its expertise in AM. My guess is that some manufacturers of 3D parts may be interested in possibly licensing the AM technology that you are working on. Is that something the GRC is doing or are you just channeling the technology through GEs industrial units? Christine Furstoss: Currently we are still in development mode with AM. We want to make sure that we always have technologies that are robust and that we also have a complete understanding of the technologys limitations. But we do have a model within GE and specically at Global Research to be able to work with strategic partners and in some cases with licensing opportunities. In fact the Corporate Licensing Group, because it is so focused on technology transfer, is located right here at GE Global Research two hours north of New York City. But at this point we are still developing our patent portfolio around AM and are still in the process of understanding both the potential and limitations of the technology. So again, our emphasis right now is around fostering the growth of a whole additive community. In time, we will be looking to form strategic partnerships that may include licensing and sharing of intellectual property. But, we are still in the formative stages and more opportunities to share technology will arise down the road. Michael Zimm: Christine, thank you very much. WHATS NEW (AND COOL) AT THE GRC?
A representative sample of recent key initia- tives at the GE Global Research Center (GRC): New EV Battery Technology: Working with Berkeley Lab on a new low cost water based ow battery designed to provide an electric vehicle with a 240 mile range. These new batteries could be just the cost of comparable EV batteries on the market today. More Efcient Wind Turbine Blades: Working with Sandia National Laboratories on researching designs for new wind turbine blades that will be quieter while generating electricity more efciently than current turbines. GE predicts a 1 decibel quieter rotor design would result in a two- percent increase in annual energy yield per turbine. With approximately 240GW of new wind installations forecasted globally over the next ve years, a two-percent increase would create 5GW of additional wind power capacity. Thats enough to power every household in New York City, Boston, and Los Angeles, combined. On-Demand Infectious Disease Detection: Working with University of Washington on an instrument free, paper based, fully disposable device that can detect a wide range of diseases in less than an hour. Click HERE to see a video simulation of how such a device could work. Cooling electronics with a device as thin as a credit card: Developing a device that is half as thick as current cooling devices and requiring half the power. Modeled after the way human lungs move air in and out of the body, which could be a breakthrough leading to ultra-thin tablets and laptops. To view a demonstration of the technology, click HERE. Industry Research Monitor: Additive Manufacturing 11 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 Q&A with Dave Abbott Sr. Staff Engineer, GE Aviation We recently sat down with Dave Abbott, Senior Staff Engineer and Technologist at GE Aviation, for an overview of GE Aviations history with additive manufacturing as well as their roadmap for incorporating additively manufactured parts in future jet engines.
Michael Zimm: I was wondering if we can focus rst on the current scope of production and the use of AM manufactured parts by GE Aviation. Can you address the current state of AM parts used in engines that are currently ying?
Dave Abbott: Certainly. AM has been around for a while. What we consider conventional AM is laser additive manufacturing, which is a powder spray deposition process. We have been developing that and using that for several decades now and we have parts that are ying. We do blade tip buildup and also where we have parts that are mis-machined or where we want to change the design or add a feature to it, we can use a laser additive process. The process is very exible and we can build up features and machine it back to tolerance and go ahead and y it. Thats been going on for a while. The powder bed process, which is the newer form that weve been working with since about 2005, is more along the lines of the plastic process thats been developed over the past thirty years. That process allows us to make more complex geometry. Those parts arent ying just yet but they are in the bill of materials on our near term future engines. So I would expect that in the next three to ve years those parts will also be ying. Michael Zimm: And a similar question to what we were discussing with Christine, what are the most common materials that you are currently working with?
Dave Abbott: Right now we are working with the workhorse alloys Ti-6-4, Inco 625 and Inco 718. These alloys are very easy to weld so they lend themselves very well to the additive process, which in the form that we are using is a melting process. As time goes on, the materials we are going to start looking at will be a little more difcult to process and we are going to require more technology development. But they are still materials that could be additively processed. Well also start looking at more of the hot section type alloys, the Ren type alloys, anything that can take higher temperatures. INTERVIEW WITH
Dave Abbott Sr. Staff Engineer/Technologist, GE Aviation Dave is a recognized expert in the eld of Additive Manufacturing for metals. He has a BS and MS in Welding Engineering, specializing in laser welding, with over 20 years laser additive experience for aerospace including gas turbine engines and airframe structures. He holds several patents related to additive technologies and has authored several publications and given several presentations specically on additive manufacturing for the aerospace industry. Dave has worked for GE Aviation for 8 years focusing solely on additive processes, having spent the past 5 years transitioning powder-bed additive technology from the laboratory to the factory oor. Industry Research Monitor: Additive Manufacturing 12 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 Michael Zimm: What can you tell us about the relative cost of AM parts compared to their conventionally manufactured equivalents?
Dave Abbott: Compared to conventionally processed parts and parts that are designed with conventional processes in mind, the additive technologies are very competitive if you are doing a one-time build, a one-off or something you want to do in a test. Its when you go into production that the cost benet of additive manufacturing tends to diminish. So, where we see the real benet is when we take advantage of the enabling capabilities of the process. With additive technology we can not only improve the performance of a part but also build parts that were not possible using conventional processes. For example, we are looking at light weight structures with topology optimization so we can actually reduce the weight of the part by 30% and then with the technology and the direction that additive is going, we should be able to improve the performance of that part without adding to the cost. Michael Zimm: And by performance, you mentioned weight as a characteristic, but are there are other mechanical properties such as durability, heat tolerance etc. that can be improved?
Dave Abbott: Right. Christine talked about being able to build a mechanical property of a part. So, we can improve the performance of a part by being able to tailor the properties of the material as we build layer by layer. So if a certain portion of the part requires higher temperatures, we can look to higher temperature alloys for that portion while still making that part as a single piece rather than having to come up with a complex geometry or having to have additional steps where were brazing or welding different pieces of the part together. So we can improve the performance of the part in a one step process while tailoring different sections of the part. We can actually come up with very complex parts in the way they are tailored to perform. Michael Zimm: What would you say would be the trajectory of the content of AM parts (powder bed process) as a percentage of the overall content in a typical GE engine? How pervasive will AM parts be say ten years from now in a typical GE engine?
Dave Abbott: We are going to start off with a few parts that go into production and as the technology develops and we develop our material properties database, AM parts will denitely become more pervasive. And we will go beyond just metals. We are looking at polymers, ceramics and polymer composites. So, AM will start off as a small percentage but it is denitely going to increase and become a signicant portion of the engine. It really depends on the complexity and requirements of the part. ADDITIVE MANUFACTURING USE BY GE AVIATION
To see a brief video overview of GE Aviations use of Additive Manufacturing, please click on the link below:
Video: AM within GE Aviation Industry Research Monitor: Additive Manufacturing 13 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 Michael Zimm: Lets talk about the Morris acquisition - maybe you could give us an idea about the rationale in making that acquisition. What capabilities does Morris bring to GE that GE thought it would be best to bring in-house?
Dave Abbott: Morris has been in the additive business for a while and is recognized as a world leader in the technology. Bringing them in house really gives us instant capacity in terms of technology knowledge, development capacity and capability. We are very familiar with our requirements and what we want to do with the technology and they are very familiar with the technology and how to implement it since theyve been working with it for quite a while now. So the marriage of the two and bringing them in-house allows us to focus Morris on our applications and gives us direct access to the technology and technology developments. In terms of Morris plans for the future, right now they are working primarily for GE Aviation. But, they will also work with the rest of the corporation on other GE applications. Additionally, as Christine talked about developing an AM ecosystem, theres the possibility of transferring the technology out to our supply chain and our strategic partners. So there is a really good opportunity for us to focus Morris and utilize them near-term for aviation applications and then we can broaden that to include the whole corporation and then from there help to develop that ecosystem. There are still a lot of things that need to be developed for this technology to move forward. But, if you look back at where we were ve years ago in terms of additive manufacturing there was nothing. We started working with the technology in 2005 (from a powder bed standpoint) and there was no supply chain, no standards and no equipment manufacturers. There was a rapid prototyping business that started making machines that use metal but they really werent being used to make production parts. So in less than 10 years we have come a long way. Now we have specications, we have parts that are being designed specically for this process and we have designs to take advantage of the unique capabilities of the process. As Christine alluded to, we can take an assembly that was previously made out of maybe twenty parts with 4 or 5 braze cycles and reduce that down to one part and no braze cycles. That reduces cost in terms of touch labor, scrap and even the braze alloys themselves are very expensive. So, weve come a long way and the rate that were developing the technology is accelerating. Michael Zimm: Dave, we really appreciate your very informative insights into the real world application of AM. Thank you. GE9X: THE WORLDS NEXT GREAT ENGINE
To see a brief video preview of the GE9X engine, please click on the link below:
Video Intro to the GE9X Engine DID YOU KNOW? The GE90-115B engine reigns in the Guinness Book of World Records as the worlds most powerful jet engine. The engine generated 127,900 pounds of thrust at a GE test stand in Peebles, Ohio, in 2002. Thats more than the combined total horsepower of the Titanic (46,000 pounds) and the Redstone rocket (76,000 pounds) that took the rst American, Alan Shepard, to space. The GE9X will be the most fuel-efcient engine GE has ever produced on a per- pounds-of-thrust basis, designed to achieve a 10% improved aircraft fuel burn versus the GE90-115B-powered 777- 300ER and a 5% improved specic fuel consumption versus any twin-aisle engine at service entry. Industry Research Monitor: Additive Manufacturing 14 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 Recent M&A/Financings Given the tremendous growth outlook coupled with a fragmented competitive landscape, its not surprising to see an active pattern of consolidation in the Additive Manufacturing space. Clearly, 3D Systems has been the most active industry consolidator. Additive Manufacturing has also attracted a signicant amount of interest from both private and public investors willing to provide growth capital. But its not just the traditional (private equity/VC) avenues of capital thats taken notice of the industrys prot potential. The popular crowd-sourced funding website Kickstarter, which has helped raise $810 million from nearly 5 million people to fund nearly 50,000 projects of all varieties, recently said that six of the top thirteen most funded projects on its website are somehow related to 3D printing. Recent Notable M&A Transactions Date Buyer Target Value ($M) Description Sep-13 Pexco Spectrum Plastics Group Rapid prototyping services Sep-13 3D Systems The Sugar Lab 3D printed edible confections Aug-13 3D Systems CRDM UK provider of rapid prototyping services Aug-13 3D Systems TeamPlatform Collaborative design and project mgt platform Jul-13 3D Systems Phenix Systems $24 Manufacturer of powder bed equipment Jun-13 Stratasys MakerBot $615 Leading provider of consumer desktop printers May-13 3D Systems RPDG Service bureau specializing in on demand parts Mar-13 Massive Dynamics PrintForge 3D 3D printer manufacturer Jan-13 3D Systems COWEB $1 Content hosting and publishing platform for 3D goods Jan-13 3D Systems Geomagic $55 3D design and authoring software Nov-12 General Electric Morris Technologies & Rapid Quality Mfg. 3D printing services for high value components Oct-12 3D Systems Rapidform $35 3D scan-to-CAD software Oct-12 3D Systems The Innovative Modelmakers Netherlands-based service bureau Sep-12 In Tech Industries Vista Technologies 3D printer manufacturer Jul-12 SPEX Services Cognity Ltd 3D printing and rapid prototyping services Jul-12 3D Systems Viztu Technologies $1 Online platform to turn photos/videos into 3D creations May-12 3D Systems Bespoke Innovations Provider of custom designed prostetics and orthotics May-12 3D Systems Fresh Fiber $1 3D printed consumer goods Apr-12 Stratasys Objet $665 Leading polyjet 3D printer manufacturer Apr-12 3D Systems Paramount Industries $7.4 Services specializing in Aerospace and Medical Devices Apr-12 3D Systems Resolutex 50 Apr-12 3D Systems My Robot Nation Consumer oriented 3D platform Nov-11 3D Systems Z Corp & VIDAR Systems $136 Multijet 3D printer manufacturer Recent Notable Financing Transactions Date Company Amount Type Investor Sep-13 Stratasys $463 million Follow-on Equity Public Sep-13 VoxelJet $100 million (Filed) IPO Public Sep-13 ExOne $65 million Follow-on Equity Public Jun-13 Arcam $8.75 million Private Undisclosed May-13 Arcam $9 million Private Undisclosed May-13 3D Systems $250 million Common Stock Public Apr-13 Shapeways $30 million Private Andreessen Horowitz Feb-13 ExOne $95 million IPO Public Dec-12 Sculpteo $2.5 million Private Xange Jun-12 Shapeways $6 million Private Lux Capital, Index Ventures Aug-11 MakerBot $10 million Private Foundry Group
Sources: S&P Capital IQ, Company Press Releases Industry Research Monitor: Additive Manufacturing 15 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 Industry Research Monitor: Additive Manufacturing 16 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 50 BILLION IN INVESTMENTS ACROSS THE VALUE CHAIN 4.2 BILLION OF DIRECT AEROSPACE & DEFENSE CORPORATE FINANCINGS GE CAPITAL HAS 2 SECONDS A GE-POWERED AIRCRAFT TAKES OFF EVERY $ $ Our capital is already at work building the business you know AEROSPACE & DEFENSE Resources/Links
GE Global Research Center Manufacturing & Materials Technologies GE Additive Manufacturing Website Webinar - Additive Manufacturing at GE Webinar The Future of Additive Manufacturing Christine Furstoss White Paper Adding the Next Layer to Additive Manufacturing Access GE Bringing the full breadth of GE to our customers GE Capital Corporate Finance Aviation Supplier Financing Solutions Industry Research Monitor: Additive Manufacturing 17 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 FINANCING AND KNOW-HOW. DESIGNED TO HELP AVIATION PARTS MANUFACTURERS UPGRADE AND GROW. At GE Capital, Corporate Finance, were not just bankers. Were builders. Especially when it comes to aviation. As one of the worlds leading producers of jet engineswe built Americas frstwe have a deep understanding of what it takes for aviation parts manufacturers and suppliers to succeed. Thats why, in addition to being one of the largest providers of commercial aviation equipment fnance, we ofer something unique. Access to GE tools and insights that can help you take advantage of the innovations revitalizing our industry. So your business can take of and grow. Stop just banking. And start building. To learn more, contact Gib Bosworth at 949-838-3014 or email gib.bosworth@ge.com. GECapital.com/aviationsuppliers GE Capital Corporate Finance Industry Research Monitor: Additive Manufacturing 18 Explore Financing Solutions at www.gecapital.com/americas Copyright 2013 General Electric Corporation, All Rights Reserved. To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM GE Capital Fall 2013 GE Capital is an extension of GEs rich heritage of building and supporting growth. Investing in the sectors we know best, we can provide more than just nancing: We bring insight, knowledge and expertise to every loan. And as a result, businesses that nance with GE Capital benet from the global know-how and expertise of GE. gecapital.com Michael Zimm, CFA 646-428-7015 Aerospace & Defense michael.zimm@ge.com Technology & Business Services Truck Transportation Special thanks to contributing editor: Frances Spencer Richard Aldrich, CFA 646-428-7365 Chemicals & Plastics richard.aldrich@ge.com Metals & Mining Auto & Auto Parts Ben Abramovitz, CFA 646-428-7129 Media & Telecom ben.abramovitz@ge.com Jeffrey Englander, CFA 646-428-7135 Healthcare jeffrey.englander@ge.com Construction Industrial Products & Services Loren Trotta 203-229-1877 Food, Beverage & Agribusiness loren.trotta@ge.com Financial Services GE CAPITAL AMERICAS INDUSTRY RESEARCH TEAM GE Capital Spotlight Transaction
In October 2013, GE Capital, Corporate Finance - Aerospace & Defense provided equipment nancing to Morton Manufacturing for manufacturing equipment needed to help meet the demands of commercial aviation customers. Morton Manufacturing is a small, minority, woman-owned business located in Santa Clarita, California. Founded in 1967, Morton is the leading supplier of nickel-alloy bolts for gas-turbine aircraft engines, as well as aero-derivative gas-turbine engines for industrial use worldwide. GE Idea Works www.geideaworks.com GE Idea Works connects GEs internal intellectual property, technology and resources with the external world to help meet the demands of commercial aviation customers. Copyright 2013 GE Capital Corporation. All rights reserved. GE, General Electric Company, General Electric, the GE Logo, and various other marks and logos used in this publication are registered trademarks, trade names and service marks of General Electric Company. You may reprint or forward this presentation to others provided that it is reproduced or distributed in its entirety, including this disclaimer. IMPORTANT DISCLAIMER: This presentation provides general information and should not be used or taken as legal, regulatory, business, nancial, tax, accounting or other advice, or relied upon in substitution for the exercise of your independent judgment. For your specic situation or where otherwise required, expert advice should be sought. Although GE believes that the information contained in this presentation has been obtained from and is based upon sources GE believes to be reliable, GE does not guarantee its accuracy and it may be incomplete or condensed. GE makes no representation or warranties of any kind whatsoever in respect of such information. GE accepts no liability of any kind for loss arising from the use of the material presented in this presentation. Although General Electric Capital Corporation (GE) believes that the information contained in this newsletter has been obtained from and is based upon sources GE believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. GE makes no representation or warranties of any kind whatsoever in respect of such information. GE accepts no liability of any kind for loss arising from the use of the material presented in this newsletter. This newsletter is not to be relied upon in substitution for the exercise of your independent judgment or legal advice.