AML3D (ASX:AL3) has successfully disrupted metal part supply chains through its patented Wire Additive Manufacturing (WAM) process. The Adelaide-based company has recently shifted its focus from being a parts supplier to providing original equipment manufacturing (OEM) machines and technology. This strategic pivot has proven to be fruitful as AML3D taps into the lucrative North American market. With the Biden Administration’s emphasis on revitalizing US manufacturing capabilities using cutting-edge technology, AML3D’s innovative approach is gaining significant traction.
From University Lab to Business Idea
Founded in 2014 by Andy Sales, AML3D combines welding and metal deposition with robotics to pioneer additive manufacturing. Sales, now the chief technical officer, developed the concept during his Master’s degree at Cranfield University in the UK. The company’s patented wire additive manufacturing process, known as the Wire-Arc, Direct Energy Deposition, enables the production of large-scale industrial parts. AML3D listed on the ASX in April 2020, positioning itself as a disruptive force in the metal parts manufacturing sector.
Understanding Additive Manufacturing
In contrast to traditional manufacturing methods such as casting and machining, additive manufacturing builds parts almost to their final size using near-net shape (NNS) manufacturing. AML3D’s expertise lies in working with metal alloys, each with its own specific melting temperature. The company’s deep understanding of metallurgical properties enables precise control over the additive manufacturing process, resulting in high-quality parts. With the ability to manufacture parts economically, additive manufacturing offers a viable alternative to traditional manufacturing techniques.
Targeting Growth Opportunities
Upon joining AML3D as CEO, Ryan Millar researched the company’s growth potential and discovered a significant demand for their machines and technology. Consequently, AML3D shifted its focus to selling OEM machinery, such as their 3D metal printer called ARCEMY, and leveraging their proprietary software platform. The ARCEMY printer, driven by advanced software engineering, distinguishes AML3D’s offering in the 3D printing market. This strategic transition allows the company to tap into the vast US market, which accounts for approximately 30% of global demand and supply in additive manufacturing.
Expanding Presence in the US Market
Millar identified the United States as a key market for AML3D due to its substantial demand for additive manufacturing parts. The Biden Administration’s Additive Manufacturing Forward (AM Forward) initiative, aimed at bolstering US manufacturing capabilities using advanced technologies, further solidified the company’s decision to focus on the US market. AML3D’s presence in the US was further enhanced by the establishment of a subsidiary, AML3D USA. Operating within the country enables AML3D to better serve its customers, collaborate more effectively, and streamline its operations.
Defence Industry as a Key Vertical
Given its ability to manufacture large components with high anti-corrosive properties, AML3D has found a niche in the defense, navy, and maritime sectors. The company’s expertise aligns with the requirements of the defense industry, making it an ideal partner for manufacturing critical components. Moreover, AML3D targets opportunities in the oil and gas and aerospace industries, leveraging its advanced additive manufacturing capabilities to meet the unique demands of these sectors.
Confident in Future Prospects
Despite the challenges posed by the tech downturn and the company’s ongoing quest for profitability, Millar remains optimistic about AML3D’s prospects. The recent well-supported capital raise, which exceeded expectations, reflects the investor base’s confidence in the company’s growth potential. Millar emphasizes the importance of delivering on their commitments and focusing on building a world-leading product and business that sets global standards. He anticipates that achieving objectives and improving market conditions will drive long-term increases in the company’s share price, reflecting AML3D’s value and success.
AML3D’s strategic shift to providing OEM machinery and technology has yielded positive results, particularly in the lucrative US market. By leveraging their patented additive manufacturing process, the company has secured significant contracts, including collaborations with the US Department of Defense. AML3D’s focus on the defense, oil and gas, and aerospace sectors positions it as a key player in these industries. With a strong investor base and a commitment to delivering on their objectives, AML3D is poised for continued success as it revolutionises the metal parts manufacturing landscape.
