Leading service bureau Incodema3D has been bought by AFM Capital.New York-based Incodema3D is one of the largest metal 3D printing services and contract manufacturers in the U.S.Specialized in LPBF for metals, Incodema3D has 35 EOS machines and is one of the largest EOS customers worldwide.
The company also runs Haas and Mazak equipment, as well as Solukon systems for depowdering.It also has equipment such as a MIDACO Corporation AS50SD pallet changer machine for resurfacing United Performance Metals build plates and an HK Technologies Vacuum Reclaim Sieving station.For powder, the firm uses 6K.
Incodema3D got its first EOS system, an M280, in 2012 and split off from its parent company, Incodema, in 2014.Then in 2022, it bought its 16th system, bringing its fleet to EOS M400s, M290s, and an EOS M300-4.Since then, the company has added four EOS M400 and four EOS M400-4 systems.
So Santa has already come down the chimney in March in New York.Incodema3D runs mostly Inconel, working extensively for aerospace and defense as well as industrial and energy applications.The company is precision-focused and has nearly all relevant AM and post-processing capabilities in-house.
It is AS9100D and ISO 9001:2015 certified and ITAR compliant.Incodema3D operates from a 60,000-square-foot factory in Freeville, New York.The company initially raised $8 million, followed by a $5.1 million seed round in 2018.
Sean Whittaker, the likable, driven entrepreneur behind Incodema3D, also invested his own money in the company, including proceeds from the sale of his precision sheet-metal firm Incodema to CORE Industrial Partners, which later became part of Fathom Digital Manufacturing.AFM Capital, meanwhile, is an Indianapolis-based madcap investment fund that buys business services and industrial firms.Its investments include TriStar, a leading industrial pipe supplier, and Tag, a leading vendor of APUs for aerospace.
AFM has announced that it has bought a majority stake in Incodema3D.Whittaker and his team will stick around to run the company.Whittaker indicated, “We are excited to partner with AFM Capital.
AFM Capital brings operational expertise and strategic resources that will allow us to accelerate our growth, expand production capabilities, and continue investing in advanced additive technologies.Together, we are well positioned to meet the increasing demand for high-performance metal components across mission-critical Defense, Aerospace, Space, Energy, and Industrial markets.I would also like to express my appreciation to our early-stage investors for their support in helping establish our organization as a strong and trusted enterprise.” Meanwhile, AFM Capital President Mark McTigue said, “Incodema3D represents exactly the type of advanced industrial platform we seek to build at AFM Capital.The Company has established itself as a trusted partner to leading customers by delivering highly engineered metal components at production scale.
We look forward to working closely with Sean and the Incodema3D team to invest in capacity and large-format additive technologies, while expanding the Company’s manufacturing footprint to support long-term customer programs.” Incodema3D was advised by Cantor Fitzgerald as financial advisor, while Courtney Wellar Esq.and the law firm Bond Schoeneck & King served as legal advisors.AFM was advised by DLA Piper, with JPMorgan Chase and Gladstone Capital Corporation providing debt financing.
Incodema3D is an excellent company.Whittaker, and Matthew Lewis, Kevin Engel, James Hockey, James Hockey and others have been attending Additive Manufacturing Strategies (AMS) over the years.And it was nice for everyone to get to know them as helpful members of our community.
Aside from this we can see that the success came from a focus on excellence and aerospace and defense. When the whole industry was preaching high mix low volume, Incodema3D was targeting serial production, reliability, repeatability, and low scrap rates.By building a large collection of machines, the company has made significant investments.But, more than this, it has invested in its people, training, and execution.
An early focus on defense, suppressors, and aerospace was the right one, also.Expertise in the most critical parts and the most efficient manufacturing of those parts is key to their success.The company is relentless.
Many people have small service bureaus, and escaping the initial economics of having one metal machine, for example, is brutal.It’s very difficult to make money.By getting significant investment early, Incodema3D was able to secure better process economics.
The company has not only invested in machines but also in the most productive ones.It has also made a big bet on EOS and sustained a long relationship with them spanning 14 years.That is key to building up institutional learning and tribal knowledge on several platforms.
It’s not quite like Ryanair running only 737’s, but similarly, there are economies of scale.As a service bureau, it is easy to get distracted by the shiny parts that you are making.Lots of industries and lots of applications everywhere.
Incoma3D invested in bringing almost the whole process chain in-house, but having excellent suppliers on top of this as well.This combination is powerful.Some services outsource a lot of valuable time-critical work, such as heat treatment, while others struggle to find good local partners in anodizing or similar operations.
Choosing what to insource and what to ship out is not a simple affair.Incodema3D also made substantial investments in CNC and in understanding CNC, which, of course, is important.But it’s easy to say that now; a lot of people who ten years ago thought that 3D printing was magic and CNC was something dumb that everyone could do.
The combination of Additive and CNC, when done well, is very powerful, especially for parts with high regulatory burdens or tight tolerances.With so many potential clients, service bureaus often struggle with the cost of quality.You’re either making too many cheap parts in an expensive process, or you have a way too expensive process for a lot of the parts that you make.
Understanding which system you are in and how you perceive is key to solving this problem.You could try running two quality levels in-house, which I’ve never really seen work.Or you could focus on a family of clients, applications, and parts that are optimal for one quality level.
This is what Incodema3D did.At the same time, it was at a very early stage, focused on production, efficiency, and repeatability.Incodema3D is efficient as well with good people, but not too much overhead, in 2024 the firm reportedly had 55 staff.
That, coupled with a focus on metrology, precision, and efficiency, made the company a very well-oiled machine.But, the focus on defense, energy and aerospace meant that similar processes, similar materials and similar quality levels and practices really brought dividends here.Other people had machines, but Incodema3D turned the entire operation from design to production and post-processing into an efficient, well-oiled machine.
Beyond the Additive hype, there are well-working, efficient businesses with long-term contracts and good economics.This seems like a good outcome for Incodema3D.I, for one, would love to know if Core or American Industrial Partners also threw their rings in the hat for this one.
It’s interesting that a less additive-focused investor won on the day.Incodema3D shows us that we were all in the Additive business, but not many of us have turned Additive into a business.We were doing the VC SPAC cargo cult while Incodema3D was pushing out parts with ever greater efficiency.
A lot of hard work and thought went into Incodema3D, and this is a well-deserved exit for the team.Images courtesy of Incodema3D Subscribe to Our Email Newsletter Stay up-to-date on all the latest news from the 3D printing industry and receive information and offers from third party vendors.Print Services Upload your 3D Models and get them printed quickly and efficiently.
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