Wohlers Associates

Industry Briefing
September 2003

Adoption of RP Around the World

Years of growth and decline in rapid prototyping have become the norm. With companies constantly entering and leaving this industry, it is no wonder so many are unclear about the technology’s future. Yet, RP continues to grip the interest and imagination of many around the world. Once considered to be just a tool for prototyping, RP has expanded into an impressive range of industries and applications. In the future, the expansion will include organizations, industries, and applications that use RP in ways that today are hard to fathom.

As the industry develops and matures, there will be a dramatic increase in the application of the technology for early concept models and finished manufactured parts. The rise of 3D printers, most commonly used for concept modeling, has begun. Meanwhile, a growing number of companies are applying RP technology to the manufacture of series production parts in quantities of one to several thousand.

Countries around the world continue to adopt RP technology. Last year, China edged ahead of Germany for the first time in the history of rapid prototyping. China represented 10.8% of all RP systems sold and installed in 2002, compared to 8.1% for Germany. The share held by the U.S. (40.9%) is expected to decline in the years to come as China and other countries further embrace the technology.

Note: The previous information was taken from the recently published Wohlers Report 2003.

Wohlers Talk: Company Execs that Share the Pain

When times are tough, I've always found it disheartening to watch companies lay off employees or reduce pay and other benefits, while top executives receive embarrassingly large sums in salaries and bonuses. "How can they do it in good conscience?" I ask myself. It happens time and again, even among executives who do a seemingly poor job at managing their company.

The July 7, 2003 issue of Design News published an interesting story that counters some of my pessimism on this subject. Willem Roelandts, president and CEO of Xilinx, a company in the semiconductor business, authored the article. His company, along with many others, have been impacted by what many describe as one of the worst recessions ever to hit this industry.

Through a variety of efforts, Roelandts explained, the company instituted a variety of cost-cutting measures. The most significant was savings from a company-wide strategy to reduce payroll expenses. The CEO and executive staff received the largest reduction (20%), following by directors (10%), mid-level management (6%), non-management and salaried employees (3%), and hourly employees (0%). That's right: No pay cut for the hourly employees.

The strategy paid off. The company delivered new products in 18 months, while gaining market share. Meanwhile, employee morale remained high. In fact, the company earned a Number Four ranking in Fortune magazine's 100 Best Companies to Work For. Roelandts said that they were totally upfront with employees and explained to them the dilemma and financial bind that the company faced, while asking for their feedback, advice, and support. It's my hope that the top management at other companies can learn from Xilinx and others like it.

Note: Wohlers Talk offers thoughts, ideas, perspective, and commentary related to rapid product development and other topics. Twenty-four commentaries have been published since February of this year. To view them, visit http://wohlersassociates.com/Wohlers-Talk.html.