ExOne and Voxeljet, two giants of industrial 3D printing, announce their merger to create a new monopoly in additive manufacturing of sand and polymers. Far from being a sign of growth, the operation is a defensive move after years of losses, unable to compete with cheaper and faster Chinese metal 3D printing. The union seeks to plug holes, not innovate.
Technical details of the merger: less competition, more costs 💸
The merger will concentrate the market for sand mold printing and polymer parts into a single entity. This will allow the new company to raise prices for its industrial clients, from car manufacturers to heavy machinery. The extra cost will be passed directly to the final consumer in the form of more expensive cars and equipment. Meanwhile, at least 300 employees are expected to be laid off at plants in Germany and the United States, a restructuring that workers will pay for.
Happy executives, workers on the street 😡
The funniest part of this merger is seeing ExOne and Voxeljet executives celebrating with million-dollar bonuses for the operation, while 300 employees update their resumes. The new company promises to revolutionize manufacturing, but what it will revolutionize is the bottom line of a few. Stocks will rise for a few months, just long enough for executives to cash out and jump ship before it sinks due to a lack of real innovation. Financial smoke for investors, not for the public.