In a move to further strengthen its presence in New Zealand, Stratasys Asia Pacific, a subsidiary of has entered into a partnership with Ricoh New Zealand Ltd. (Ricoh New Zealand), a subsidiary of Ricoh Company, Ltd. Japan. The collaboration will cater to the demand for 3D printing solutions in the region. Financial terms of the deal remain undisclosed.
Ricoh will be representing the entire Stratasys product line, in addition to the existing MakerBot line. The collaborations with Ricoh for the adoption of 3D printing solutions are likely to reap synergistic benefits going forward. Partnering Ricoh will be a positive for Stratasys.
Ricoh New Zealand’ experience in offering office imaging, production printing, IT services and document solutions will perfectly complement the robust manufacturing expertise of Stratasys’ 3D printing domain, helping the latter in innovative additive manufacturing initiatives. Therefore, it will help Stratasys gain competitive advantage over players like 3D Systems Corp.
Zacks Equity Research, which first reported the news, believe that the collaboration will expand and enhance Stratasys’ additive manufacturing (AM) or 3D Printing Platform. Also, this association will enable Stratasys to attract new clients and strengthen its overall market position.
“We are confident that this partnership will help us to better understand the local information technology and industrial automation landscape in New Zealand, thereby helping more companies optimize production capabilities and expand business opportunities.” said Shiry Saar, ANZ Manager for Stratasys.
The 3D printing market presents a favorable long-term investment opportunity, as a large number of engineers, designers, architects and entrepreneurs are resorting to 3D solutions for their primary designing and product modeling.
According to a recent survey by Lux Research, the 3D printed parts space will be an $8.4 billion global market by 2025, led by automotive, medical and aerospace applications. Additionally, with lower costs of 3D printing as compared with traditional manufacturing, industries are increasingly adopting the technology in their manufacturing plants.
Data from the Wohlers Report 2014 revealed that the worldwide 3D printing industry is projected to grow from $3.07 billion in 2013 to $12.8 billion by 2018, and exceed $21 billion by 2020 at a CAGR of 34%.
As the industry leader in 3D printing, this is encouraging for Stratasys, as it should take every opportunity to grab a large share of this market. Notably, the company has entered into strategic partnerships in other spaces as well, including the auto industry with Ford Motor Co. F and energy space with Schneider Electric, to grab the growing opportunity in the 3D Printing industry.
Remarkably, Stratasys has outperformed the Zacks categorized Computer-Peripheral Equipment industry in the year-to-date (YTD) period. The stock has returned approximately 40.9% YTD, outperforming the industry’s gain of 27.1%.