2013 - GE Capital - Additive_Manufacturing_Fall_2013

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Industry Research Monitor: Additive Manufacturing 1

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GE Capital

Fall 2013

Contents

The Return of Manufacturing for Competitive Advantage ...................................................................................2

Q&A with Christine Furstoss, Technology Director, GE Global Research Center ............................................8

Q&A with David Abbott, Sr. Staff Engineer/Technologist, GE Aviation ............................................................11

M&A & Financing Highlights ........................................................................................................................................14

Resources/Links ..............................................................................................................................................................16

GE is making significant

investments in novel materialsand processes that maximize

the potential offered by

Additive Manufacturing.

Breakthroughs in this class

of advanced manufacturing

are enabling the development

of products featuringperformance characteristics

that are virtually impossible

to replicate with traditional

manufacturing methods.

Additive ManufacturingRedefining Whats Possible


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GE Capital

Fall 2013

The Return of Manufacturing for Competitive Advantage

Manufacturing is a major source of competitive advantage. After decades of

outsourcing capability, we now see companies rebuilding their manufacturing

strength. Companies used to make investment decisions purely on labor cost.However, there are new materials that can revolutionize performance, and precision

technologies and high-power computing are transforming how we manufacture.

GE will insource more manufacturing content. We are investing in processing

technologies such as additive manufacturing.

Jeff Immelt, GE Chairman and CEO;

Excerpt From Letter to Shareholders 2012 GE Annual Report

Given all of the recent attention in the mainstream media, one might think that

Additive Manufacturing (interchangeably referred to as AM or 3D printing) is a recent

breakthrough in advanced manufacturing. But in fact GE has been working with the

technology for many years and the know-how has been around for more than three

decades. It is only recently however, thanks to the publicity generated by several

public manufacturers of 3D printers and likewise growing media coverage and investor

interest, that 3D printing has enjoyed the media spotlight. What was once known only

in the shadows of the industrial world as a tool for rapidly prototyping new designs has

now developed into a generational phenomenon within reach of everyone.

Estimates for the size and growth of the market for Additive Manufacturing hardware

and services vary widely, but across the board all suggest varying degrees of rapid

growth. According to IBISWorld, U.S. based suppliers of 3D printers and related services

generated combined revenue of $2.4 billion in 2012, which is expected to grow nearly

14% annually through 2017.

Source: IBISWorld

CORPORATE VISION

Jeff ImmeltGE Chairman and CEO

Manufacturing is the new basis forcompetitive advantage for industrialcompanies and for that mattercountries. The notion of manufacturinghas changed and the era of laborarbitrage is ending. You can makewhatever you want, whenever you want.Entrepreneurs inhabit the manufacturingspace like never before. Manufacturingis being digitized, decentralized anddemocratized.

GE is in the lead of most, if not all ofthis. We are making big investments

at the GE Global Research Center inhigh-performance computing, novelprocesses and additive manufacturing.

0

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4

5

6

2012 2013 2014 2015 2016 2017

Services Har dware

3D Printing Hardware & Services

U.S. Suppliers Revenue ($ Billions)


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GE Capital

Fall 2013

DEFINITION: ADDITIVE MANUFACTURIN

n Process of joining materials to make

objects from 3D model data, usually layerupon layer, as opposed to subtractivemanufacturing methodologies.

Synonyms: additive fabrication, additiveprocesses, additive techniques, additive laymanufacturing, layer manufacturing andfreeform fabrication

*ASTM E2792-009 Standard Terminology foAdditive Manufacturing Technologies

The Allure of Additive Manufacturing

Simply put, 3D printing uses Computer Aided Design (CAD) files as a blueprint to build

physical objects by repeatedly applying thin layers of materials in a build-up oradditive

process. But 3D printing is not a single technology. Depending on the material and

objective of the final application, there are at least seven different additive processescommercially available. Nonetheless, the basic concept of building-up layer-by-layer

is common across all of the different additive processes. Contrast this to traditional

manufacturing processes where material is often removed from a larger form in a

subtractive process by cutting, milling, grinding or drilling. Since there are no wasted

shavings or other excess materials, the additive process substantially lowers the cost

of raw materials. Although more exotic materials such as ceramic matrix composites

are likely to be used in the future, the most common materials currently used in additive

manufacturing are generally in the classes of plastics and various industrial metals such

as Aluminum, Nickel and Steel.

Aside from the potential for lower costs of materials, labor and other overhead, the

primary allure of the additive process is centered on the ability to shorten cycle times andrapidly transition product concepts into physical products. What used to take weeks or

months to develop a physical prototype, is now taking hours or days. Additionally, the

additive process can accommodate nearly limitless degrees of customization of complex

design geometries as well as the manipulation of physical properties throughout the

product such as heat tolerance, density and weight. David Joyce, president and CEO of

GE Aviation, says that additive technology liberated his business from the limitations of

machining. It gives the designer a whole different palette of colors to paint with, and truly

on a whole new canvas.

But as much as additive processes are well suited for highly customized, intricate and

relatively low volume applications, the technology is not necessarily well suited for all

applications. Very large objects as well as most homogenous applications with simple

geometries requiring high volume production runs (tens or hundreds of thousands of units)and very fast throughput are currently still better served by traditional manufacturing

processes. In that sense, the additive process is best thought of as a complementary

manufacturing technology rather than a near-term replacement for all traditional

manufacturing processes.

Not surprisingly much of the mainstream media most closely associates 3D printing with

the potential for consumers to manufacture almost any common household item (plates,

utensils, coffee mugs, garden gnomes, toys and all kinds of tchotchkes) at a moments

notice in their homes. With consumer oriented 3D printer hardware generally priced

around $2,000 and some low-end printers selling for as little as $100, the technology

is already very much within reach of many consumers. Although the early consumer

adopters are still mostly hobbyists, broader consumer adoption is likely to accelerate

as equipment prices continue to fall and the breadth of usable materials and printable

designs continues to expand.

INTRODUCTION TO ADDITIVEMANUFACTURING

To see a brief video outlining the basicsof additive manufacturing at GEs GlobalResearch Center, please click on the linkbelow:

Video Intro to Additive Manufacturing
https://www.youtube.com/watch?v=andW3VMGOJ0https://www.youtube.com/watch?v=andW3VMGOJ0https://www.youtube.com/watch?v=andW3VMGOJ0


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GE Capital

Fall 2013

Printed Lunch Anyone?

The list of industries adopting or at least experimenting with 3D printing is rapidly

expanding into areas such as clothing, jewelry and even food. To date however, the

jump from prototype to production components used in mission critical applications

has been most common in the aerospace, medical and dental device, automotive and

electronics industries. Applications in these industries usually require relatively small

quantities of high value parts that are lightweight, strong and geometrically complex.

Take for example, the forthcoming (expected to enter service in 2016) LEAP (Leading

Edge Aviation Propulsion) jet engine produced by CFM International, a joint-venture

between GE and Frances Snecma. The LEAP will be the first commercial jet engine to

incorporate fuel nozzles printed by a laser that sinters ultra-thin layers of a Cobalt-

Chromium alloy powder. Using conventional manufacturing techniques, each fuel

nozzle would have been assembled with up to 20 parts welded together. Using additive

processes, the fuel nozzles will now be grown as a single piece that is 25 percent

lighter and five times more durable than its conventionally manufactured counterpart .

Weight reduction is particularly important in aviation applications given that just asingle kilogram reduction of an aircrafts weight can mean fuel savings of up to $3,000

per year. LEAP reduces fuel burn by 15% over its predecessor engine. That adds up

to several million dollars saved per year per plane, says GE Aviation spokesman Rick

Kennedy. Overall, GE estimates that by 2020, there will be some 100,000 3D printed

parts in service within GE (GE9X) and CFM (LEAP) engines.

In the area of medical and dental device manufacturing, some companies have already

moved rapidly toward manufacturing hearing aids, prosthetics and dental braces

using additive processes. But no doubt the most eye opening recent developments

in additive manufacturing have occurred in the field of medical research where the

boundaries of material usage and functionality have been pushed the furthest.

For instance, the technology has allowed engineers to mimic the physical andfunctional properties of bones with the ability to create structures that are more porous

at the center and denser near the perimeter. Even more remarkable, scientists have

already successfully bio-printed live kidney and liver cells into miniature replicas of

organs that within a laboratory setting have demonstrated the ability to perform most

of the same functions as the real things. While still many years away from being used

for human transplants, the possibility of no longer having to wait on a long list for a

lifesaving organ transplant can at least be contemplated.

ADDITIVELY MANUFACTURED FUEL NOZZLE

CFM LEAP JET ENGINE


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GE Capital

Fall 2013

Next Steps in the Advancement of Additive Manufacturing

Even the most well versed experts in additive manufacturing admit that they really have

no idea exactly what types of exotic applications the technology will lead to 20 or even 10

years from now the future is wide open to imagination with very few boundaries to the

limits of whats possible. However, what seem clearer are the near-term steps necessaryfor the technology to continue advancing toward its long term potential.

These next steps include the continued maturation of an industry ecosystem. Increasing

adoption in both the commercial and consumer markets will follow the development and

increased access to an entire ecosystem of equipment distribution, services, maintenance,

materials supplies, software development etc. We want to develop an ecosystem of

designers, engineers, materials scientists, and other partners who can learn with us, says

Michael Idelchik, who runs GEs advanced technologies research. We have a number of

products that we are going to be launching and we want to challenge people to get into

business with us. If the ecosystem grows, the entire industry will grow.

Additionally, most 3D printed products are currently made from a single material

and are used primarily for a single, static function. Experts believe that eye opening

breakthroughs in additive applications will be driven by the continued progression toward

additive processes that incorporate numerous materials. For example, using a variety

of materials, one section of a part could be optimized for heat tolerance while another

section could be optimized for strength. Also, new applications will develop when printed

products are capable of multiple functions - the ability to adapt and change their functionin response to changes in operator input or automatically in response to changes in the

operating environment.

GE & ADVANCED MANUFACTURING

To see a brief commercial overview of GEs

vision for Advanced Manufacturing, pleaseclick on the link below:

Video: GE & Advanced Manufacturing

RECENT HEADLINES ASSOCIATED WITHADDITIVE MANUFACTURING

Sigma Labs, Inc. announced that itswholly-owned subsidiary, B6 Sigma,Inc., was among the winners of a $5million grant by the U.S. Departmentof Commerces National Institute ofStandards and Technology (NIST).

German 3D printer company VoxelJet filefor a $100 million IPO.

For the second year in a row, 3D Systemshas made Fortune Magazines 2013 listof the fastest-growing companies. Thecompany ranked second in the techcategory and fifth overall out of the 100global companies listed.

The MIT Technology Review recentlynamed Additive Manufacturing as one ofthe top 10 breakthrough technologies of2013. Read the article highlighting GEsuse of the technology by clicking on thelink below:

MIT Technology Review
http://www.youtube.com/watch?v=EDzIotCoC6Ihttp://www.technologyreview.com/featuredstory/513716/additive-manufacturing/http://www.youtube.com/watch?v=EDzIotCoC6Ihttp://www.youtube.com/watch?v=EDzIotCoC6Ihttp://www.technologyreview.com/featuredstory/513716/additive-manufacturing/


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GE Capital

Fall 2013

GE Leading by Example While Remaining Open to Suggestion

For more than two decades hundreds of engineers and scientists at GEs Global Research

Center (GRC) have been exploring the boundaries of additive manufacturing, materials

science, thermodynamics, nanotechnology and jet engine design among many other

research pursuits. Underscoring GEs commitment to infuse advanced technologies intoits own manufacturing processes, in 2011 the company established a new lab at the

GRC entirely dedicated to additive manufacturing. The new lab galvanizes GEs effort

to develop and propagate additive manufacturing applications across many of the

companys business units including aviation, energy, oil and gas, and healthcare.

Scientists at the GRC have also teamed up with engineers at GE Aviation to develop

applications for advanced materials including a new kind of ceramic (Ceramic Matrix

Composites CMCs) that outperforms the most advanced metal alloys. Jet engine

components made from CMCs weigh two-thirds less than similar components made from

advanced alloys, but can perform at temperatures as high as 2,400 degrees Fahrenheit,

where most alloys grow soft. In addition to 3D printed parts, the LEAP will incorporate

advanced materials such as turbine components made from CMCs as well as fourthgeneration carbon fiber fan blades. Altogether, the usage of parts made from advanced

materials and additive processes will reduce the overall weight of each LEAP engine by up

to 1,000 pounds.

GEs efforts in additive manufacturing were significantly bolstered by the recent

acquisition of Morris Technologies as well as its sister company Rapid Quality

Manufacturing. The two companies specialize in the use of metals in additive

manufacturing for rapid prototypes as well as volume production of high-value

components for the aerospace, energy, oil & gas and medical industries. Now operating

within GEs Aviation division, Morris and Rapid were no strangers to GE and for several

years prior to the acquisition had been supplying parts to GE Aviation, GE Power Systems

and the GRC. In addition to supplying GE, the two companies have made everything

from lightweight parts for unmanned aerial vehicles (UAVs) for the U.S. military to hipreplacement prototypes.

DID YOU KNOW?

By 2020, there will be 46,000 GE jet

engines in service, up from 4,100 in 1990

Prior to its first test in early September2013, CFM had already received nearly5,500 orders for the LEAP valued at morethan $70 billion.

Each LEAP jet engine will incorporate 19additively manufactured fuel nozzles.

1% reduction in fuel consumption wouldsave the global aviation industry $30billion over a 15 year period.2

1GE 2012 annual report

2GE Industrial Internet 101
http://gesoftware.com/sites/default/files/GEA30831%20OrbitV33N4_2013%20IndustrialInternet_0.pdfhttp://gesoftware.com/sites/default/files/GEA30831%20OrbitV33N4_2013%20IndustrialInternet_0.pdfhttp://gesoftware.com/sites/default/files/GEA30831%20OrbitV33N4_2013%20IndustrialInternet_0.pdf


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GE Capital

Fall 2013

Q&A with Christine Furstoss

Director, GE Global Research Center

We recently sat down with Christine Furstoss, Technical Director for Manufacturing and

Materials Technologies at GEs Global Research Center (GRC), for an overview of GEs visionfor Additive Manufacturing.

Michael Zimm: My first question has to do with the type of materials that are currently in

use or thought of as most conducive for AM (Additive Manufacturing) applications as the

technology stands today. Is it titanium or other metals? Is it plastic or a combination of

materials? And just to follow on with that, what does the materials roadmap look like in

GEs R&D labs?

Christine Furstoss: Right now we are building on the extensive base that has been

developed over the past thirty years for AM using plastics. These are plastics that are

used to make original prototype parts to be able to quickly get a good view of what a

configuration may look like. So what we are doing now is taking all of that great learningand applying it to true engineering materials. So, whether that is a titanium based

material, a nickel based material or cobalt based. Any true engineering material used in

heavy duty industrial components is open for use in AM.

But that doesnt mean that we are ready to go and print everything up in the world.

There are still some major hurdles that we have to face but also so many exciting

possibilities. In most types of manufacturing processes where you start with a piece of

material be it from a forging or a casting or an extrusion, you know the properties - so

you know how strong it is, you know how tough it is. What is really so exciting to me is

that when you open AM to the world of engineering materials in the future, specifically

metals and potentially ceramics, you will have the ability to truly create new material

properties specifically tailored for those parts.

Michael Zimm: So just to follow that up a little bit, what type of parts are currently best

suited or conversely not well suited for current AM technology either by application, size

of the part, the weight, thermal properties, small or large lot sizes etc. Can you speak a

little bit to that?

Christine Furstoss: Sure. There are a lot of great existing processes that will continue

to be used within GE and across the industry - advanced machining processes, drilling

processes and processes for parts that fit optimally into existing tooling. Well continue

to work on controlling those processes with more accuracy than ever before. So,

despite all of my passion for 3D printing, it wont take over the world. Simple shapes

probably will continue to be produced faster and more economically by more traditionalmanufacturing processes. That being said, we are going to continue to push those, we

are going to continue to want finer features and be able to do things faster and with

more flexibility and agility. Global Research will continue to invest in those technologies.

But when you are looking at components that currently are made from multiple types

of fabrications, perhaps you are brazing together multiple pieces. You have to weld just

for that accessibility, to get different types of features across the part throughout the

cross-section, throughout the length of the part. That is where 3D printing can really

open up new possibilities because you do not have to limit yourself by having to access

INTERVIEW WITH

Christine FurstossDirector, GE Global Research Center

Christine Furstoss is the TechnicalDirector for Manufacturing and MaterialsTechnologies based at GEs Global ResearcCenter in Niskayuna, New York. Christineis responsible for working with leadershipand R&D teams across the Company, aswell as with strategic partners, to assess,set strategy for growth, and implementcritical process and materials developmentfor industry-leading products andmanufacturing.

In addition to working with the productteams across the Company, Christine leadsapproximately 450 researchers at GE Globa

Research; her team is located across NorthAmerica, Europe, and Asia.

Christine joined GE in 1989. In addition toGE Global Research, Christine has worked inumerous divisions of GE Power & Water.

She received her B.S. and M.S. degrees inMaterials Engineering from RensselaerPolytechnic Institute (RPI).


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GE Capital

Fall 2013

DID YOU KNOW? Each year GE files approximately 2,000

patents in the U.S., which puts thecompany in the top 10 for innovation.

GE is the worlds largest user of

additive technologies in metals. Todate, there are more than 300 3Dprinters in use across GE.3

that certain area. Because you are literally building layer by layer, you can put features

in that in the past had to be made in a multi-piece component. Thats where initially we

see the ability to dramatically change some of our component designs with 3D printing.

But we are also finding that because some limitations of current tooling or processes are

removed with 3D printing, we are able to reduce the weight of some parts by up to 30%.

Michael Zimm: Im also curious about any other technical issues that may be gating

factors to the adoption of AM for mass production of all types of parts. For instance,

any limitations around printer technology that you or others are currently working on

that would improve the speed or increase the size of parts that can be accommodated.

Whats being done in that area?

Christine Furstoss: I would say that there are four factors that will truly enable Additive

Manufacturing to incorporate more types of materials and more types of parts. For

simplicity Ill limit the discussion to looking at extending AM to metallic parts. As I

mentioned, whats exciting and also a challenge is that we are building up material

properties at the same time we are building the geometry or the form. But, the softwareand the predictability of outcomes to be able to do that on a large scale just arent quite

ready. And thats not a surprise. In the casting industry and the forging industry it has

taken decades to really be able to predict how a process leads directly to the properties

you get out of the material. We are really just at the birth of that with AM. But I think

with all the advances in high performance computing and a dramatic increase in the

number of simulations that we can look at, we shouldnt take decades anymore. But it is

not going to be a simple path. So, thats one of the biggest gaps that we are working on

across GE and with our strategic partners.

The second area I would like to mention is the equipment itself. Again, the equipment

used with plastics for rapid prototyping, making things that dont have to hold industrial

tolerances, are already very good and from very good suppliers. However, the equipmentfor metallic applications is still emerging and we are working closely with suppliers,

providing them with feedback on what we are finding as we try to use these machines

24 hours a day 7 days a week using multiple types of materials. The industrialization

of a new technology is always a challenge and something thats not surprising, but

something that we have to pay attention to.

The third area is the fact that there arent a lot of materials that are made specifically for

AM. Materials need to be developed that are specifically made for the additive process.

We are starting to work with some material suppliers, which we hope will encourage

other material suppliers to come forward.

The fourth and final area to mention is that as a gating factor, the whole ecosystemaround the industry still has to evolve. Not only companies who make printers but

people who service them, people who inspect them, people who make materials etc.

thats all still in the very early stages. So, at GE we are trying to initiate activities including

hosting supplier summits and working with local governments to encourage companies

to get engaged with AM. We need to grow that ecosystem and we need to grow it

quickly.

GES INVESTMENT IN RESEARCH ANDDEVELOPMENT

GEs annual spending on R&D has more thadoubled over the past 10 years to more tha$4.5 billion in 2012.

Source : GE Annual Reports

1

2

3

4

5

2002 2007 2012

GEs Spending on Research &Development ($B)

3GE Global Research Center


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GE Capital

Fall 2013

Michael Zimm: We know that GEs Global Research Center (GRC) is one of the worlds

most respected R&D labs. But Im curious to know if the GRC has a mechanism or

business model for monetizing its expertise in AM. My guess is that some manufacturers

of 3D parts may be interested in possibly licensing the AM technology that you are

working on. Is that something the GRC is doing or are you just channeling the technologythrough GEs industrial units?

Christine Furstoss: Currently we are still in development mode with AM. We want to

make sure that we always have technologies that are robust and that we also have a

complete understanding of the technologys limitations. But we do have a model within

GE and specifically at Global Research to be able to work with strategic partners and in

some cases with licensing opportunities. In fact the Corporate Licensing Group, because

it is so focused on technology transfer, is located right here at GE Global Research two

hours north of New York City. But at this point we are still developing our patent portfolio

around AM and are still in the process of understanding both the potential and limitations

of the technology. So again, our emphasis right now is around fostering the growth of

a whole additive community. In time, we will be looking to form strategic partnershipsthat may include licensing and sharing of intellectual property. But, we are still in the

formative stages and more opportunities to share technology will arise down the road.

Michael Zimm: Christine, thank you very much.

WHATS NEW (AND COOL) AT THE GRC?

A representative sample of recent key initia-

tives at the GE Global Research Center (GRC) New EV Battery Technology:Working

with Berkeley Lab on a new low cost watebased flow battery designed to providean electric vehicle with a 240 mile range.These new batteries could be just thecost of comparable EV batteries on themarket today.

More Efficient Wind Turbine Blades:Working with Sandia National Laboratorieon researching designs for new windturbine blades that will be quieter whilegenerating electricity more efficiently thancurrent turbines. GE predicts a 1 decibel

quieter rotor design would result in a two-percent increase in annual energy yieldper turbine. With approximately 240GW onew wind installations forecasted globallyover the next five years, a two-percentincrease would create 5GW of additionalwind power capacity. Thats enough topower every household in New York City,Boston, and Los Angeles, combined.

On-Demand Infectious DiseaseDetection: Working with University ofWashington on an instrument free, paperbased, fully disposable device that candetect a wide range of diseases in less

than an hour. Click HEREto see a videosimulation of how such a device couldwork.

Cooling electronics with a device as thinas a credit card: Developing a device thais half as thick as current cooling devicesand requiring half the power. Modeledafter the way human lungs move air inand out of the body, which could be abreakthrough leading to ultra-thin tabletsand laptops. To view a demonstration ofthe technology, clickHERE.
http://www.youtube.com/watch?v=jJVgIIee2xM&feature=youtu.behttp://www.youtube.com/watch?v=Hm5fXj-hUpk&feature=youtu.behttp://www.youtube.com/watch?v=Hm5fXj-hUpk&feature=youtu.behttp://www.youtube.com/watch?v=Hm5fXj-hUpk&feature=youtu.behttp://www.youtube.com/watch?v=Hm5fXj-hUpk&feature=youtu.behttp://www.youtube.com/watch?v=jJVgIIee2xM&feature=youtu.be


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GE Capital

Fall 2013

Q&A with Dave Abbott

Sr. Staff Engineer, GE Aviation

We recently sat down with Dave Abbott , Senior Staff Engineer and Technologist at GE

Aviation, for an overview of GE Aviations history with additive manufacturing as well astheir roadmap for incorporating additively manufactured parts in future jet engines.

Michael Zimm: I was wondering if we can focus first on the current scope of production

and the use of AM manufactured parts by GE Aviation. Can you address the current state

of AM parts used in engines that are currently flying?

Dave Abbott: Certainly. AM has been around for a while. What we consider

conventional AM is laser additive manufacturing, which is a powder spray deposition

process. We have been developing that and using that for several decades now and we

have parts that are flying. We do blade tip buildup and also where we have parts that

are mis-machined or where we want to change the design or add a feature to it, we can

use a laser additive process. The process is very flexible and we can build up features

and machine it back to tolerance and go ahead and fly it. Thats been going on for a

while. The powder bed process, which is the newer form that weve been working with

since about 2005, is more along the lines of the plastic process thats been developed

over the past thirty years. That process allows us to make more complex geometry.

Those parts arent flying just yet but they are in the bill of materials on our near term

future engines. So I would expect that in the next three to five years those parts will also

be flying.

Michael Zimm: And a similar question to what we were discussing with Christine, what

are the most common materials that you are currently working with?

Dave Abbott: Right now we are working with the workhorse alloys Ti-6-4, Inco 625 and

Inco 718. These alloys are very easy to weld so they lend themselves very well to the

additive process, which in the form that we are using is a melting process. As time goes

on, the materials we are going to start looking at will be a little more difficult to process

and we are going to require more technology development. But they are still materials

that could be additively processed. Well also start looking at more of the hot section

type alloys, the Ren type alloys, anything that can take higher temperatures.

INTERVIEW WITH

Dave AbbottSr. Staff Engineer/Technologist, GE Aviation

Dave is a recognized expert in the fieldof Additive Manufacturing for metals. Hehas a BS and MS in Welding Engineering,specializing in laser welding, with over20 years laser additive experience foraerospace including gas turbine enginesand airframe structures.

He holds several patents related toadditive technologies and has authoredseveral publications and given severalpresentations specifically on additivemanufacturing for the aerospace industry.

Dave has worked for GE Aviation for 8years focusing solely on additive processeshaving spent the past 5 years transitioningpowder-bed additive technology from thelaboratory to the factory floor.


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GE Capital

Fall 2013

Michael Zimm: What can you tell us about the relative cost of AM parts compared to

their conventionally manufactured equivalents?

Dave Abbott: Compared to conventionally processed parts and parts that are designed

with conventional processes in mind, the additive technologies are very competitiveif you are doing a one-time build, a one-off or something you want to do in a test. Its

when you go into production that the cost benefit of additive manufacturing tends to

diminish. So, where we see the real benefit is when we take advantage of the enabling

capabilities of the process. With additive technology we can not only improve the

performance of a part but also build parts that were not possible using conventional

processes. For example, we are looking at light weight structures with topology

optimization so we can actually reduce the weight of the part by 30% and then with the

technology and the direction that additive is going, we should be able to improve the

performance of that part without adding to the cost.

Michael Zimm: And by performance, you mentioned weight as a characteristic, but are

there are other mechanical properties such as durability, heat tolerance etc. that can be

improved?

Dave Abbott: Right. Christine talked about being able to build a mechanical property

of a part. So, we can improve the performance of a part by being able to tailor the

properties of the material as we build layer by layer. So if a certain portion of the part

requires higher temperatures, we can look to higher temperature alloys for that portion

while still making that part as a single piece rather than having to come up with a

complex geometry or having to have additional steps where were brazing or welding

different pieces of the part together. So we can improve the performance of the part in a

one step process while tailoring different sections of the part. We can actually come up

with very complex parts in the way they are tailored to perform.

Michael Zimm: What would you say would be the trajectory of the content of AM parts

(powder bed process) as a percentage of the overall content in a typical GE engine? How

pervasive will AM parts be say ten years from now in a typical GE engine?

Dave Abbott: We are going to start off with a few parts that go into production and as

the technology develops and we develop our material properties database, AM parts will

definitely become more pervasive. And we will go beyond just metals. We are looking at

polymers, ceramics and polymer composites. So, AM will start off as a small percentage

but it is definitely going to increase and become a significant portion of the engine. It

really depends on the complexity and requirements of the part.

ADDITIVE MANUFACTURING USE BYGE AVIATION

To see a brief video overview of GEAviations use of Additive Manufacturing,please click on the link below:

Video: AM within GE Aviation
http://www.youtube.com/watch?v=l0SXlkrmzyw#t=215http://www.youtube.com/watch?v=l0SXlkrmzyw#t=215http://www.youtube.com/watch?v=l0SXlkrmzyw#t=215


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GE Capital

Fall 2013

Michael Zimm: Lets talk about the Morris acquisition - maybe you could give us an idea

about the rationale in making that acquisition. What capabilities does Morris bring to GE

that GE thought it would be best to bring in-house?

Dave Abbott: Morris has been in the additive business for a while and is recognizedas a world leader in the technology. Bringing them in house really gives us instant

capacity in terms of technology knowledge, development capacity and capability. We

are very familiar with our requirements and what we want to do with the technology and

they are very familiar with the technology and how to implement it since theyve been

working with it for quite a while now. So the marriage of the two and bringing them

in-house allows us to focus Morris on our applications and gives us direct access to the

technology and technology developments.

In terms of Morris plans for the future, right now they are working primarily for

GE Aviation. But, they will also work with the rest of the corporation on other GE

applications. Additionally, as Christine talked about developing an AM ecosystem, theres

the possibility of transferring the technology out to our supply chain and our strategicpartners. So there is a really good opportunity for us to focus Morris and utilize them

near-term for aviation applications and then we can broaden that to include the whole

corporation and then from there help to develop that ecosystem.

There are still a lot of things that need to be developed for this technology to move

forward. But, if you look back at where we were five years ago in terms of additive

manufacturing there was nothing. We started working with the technology in 2005

(from a powder bed standpoint) and there was no supply chain, no standards and no

equipment manufacturers. There was a rapid prototyping business that started making

machines that use metal but they really werent being used to make production parts.

So in less than 10 years we have come a long way. Now we have specifications, we

have parts that are being designed specifically for this process and we have designsto take advantage of the unique capabilities of the process. As Christine alluded to, we

can take an assembly that was previously made out of maybe twenty parts with 4 or 5

braze cycles and reduce that down to one part and no braze cycles. That reduces cost

in terms of touch labor, scrap and even the braze alloys themselves are very expensive.

So, weve come a long way and the rate that were developing the technology is

accelerating.

Michael Zimm: Dave, we really appreciate your very informative insights into the

real worldapplication of AM. Thank you.

GE9X: THE WORLDS NEXTGREAT ENGINE

To see a brief video preview of the GE9Xengine, please click on the link below:

Video Intro to the GE9X Engine

DID YOU KNOW?

The GE90-115B engine reigns in theGuinness Book of World Records as theworlds most powerful jet engine. Theengine generated 127,900 pounds ofthrust at a GE test stand in Peebles,Ohioin 2002. Thats more than the combinedtotal horsepower of the Titanic (46,000

pounds) and the Redstone rocket (76,000pounds) that took the first American, AlaShepard, to space.

The GE9X will be the most fuel-efficientengine GE has ever produced on a per-pounds-of-thrust basis, designed toachieve a 10% improved aircraft fuel burversus the GE90-115B-powered 777-300ER and a 5% improved specific fuelconsumption versus any twin-aisle enginat service entry.
http://www.youtube.com/watch?v=qVVj2ddb-eQhttp://www.gereports.com/sphere-of-turbulence/http://www.gereports.com/sphere-of-turbulence/http://www.youtube.com/watch?v=qVVj2ddb-eQhttp://www.youtube.com/watch?v=qVVj2ddb-eQhttp://www.gereports.com/sphere-of-turbulence/


14/18




GE Capital

Fall 2013

Recent M&A/FinancingsGiven the tremendous growth outlook coupled with a fragmented competitive landscape, its not surprising to see an active pattern of

consolidation in the Additive Manufacturing space. Clearly, 3D Systems has been the most active industry consolidator.

Additive Manufacturing has also attracted a significant amount of interest from both private and public investors willing to provide growtcapital. But its not just the traditional (private equity/VC) avenues of capital thats taken notice of the industrys profit potential. The popu

crowd-sourced funding website Kickstarter, which has helped raise $810 million from nearly 5 million people to fund nearly 50,000 projec

of all varieties, recently said that six of the top thirteen most funded projects on its website are somehow related to 3D printing.

Recent Notable M&A Transactions

Date Buyer Target Value ($M) Description

Sep-13 Pexco Spectrum Plastics Group Rapid prototyping services

Sep-13 3D Systems The Sugar Lab 3D printed edible confections

Aug-13 3D Systems CRDM UK provider of rapid prototyping services

Aug-13 3D Systems TeamPlatform Collaborative design and project mgt platform

Jul-13 3D Systems Phenix Systems $24 Manufacturer of powder bed equipment

Jun-13 Stratasys MakerBot $615 Leading provider of consumer desktop printers

May-13 3D Systems RPDG Service bureau specializing in on demand parts

Mar-13 Massive Dynamics PrintForge 3D 3D printer manufacturer

Jan-13 3D Systems COWEB $1 Content hosting and publishing platform for 3D goods

Jan-13 3D Systems Geomagic $55 3D design and authoring software

Nov-12 General Electric Morris Technologies & Rapid Quality Mfg. 3D printing services for high value components

Oct-12 3D Systems Rapidform $35 3D scan-to-CAD software

Oct-12 3D Systems The Innovative Modelmakers Netherlands-based service bureau

Sep-12 In Tech Industries Vista Technologies 3D printer manufacturer

Jul-12 SPEX Services Cognity Ltd 3D printing and rapid prototyping services

Jul-12 3D Systems Viztu Technologies $1 Online platform to turn photos/videos into 3D creations

May-12 3D Systems Bespoke Innovations Provider of custom designed prostetics and orthotics

May-12 3D Systems Fresh Fiber $1 3D printed consumer goods

Apr-12 Stratasys Objet $665 Leading polyjet 3D printer manufacturer

Apr-12 3D Systems Paramount Industries $7.4 Services specializing in Aerospace and Medical Devices

Apr-12 3D Systems Resolutex 50

Apr-12 3D Systems My Robot Nation Consumer oriented 3D platform

Nov-11 3D Systems Z Corp & VIDAR Systems $136 Multijet 3D printer manufacturer

Recent Notable Financing Transactions

Date Company Amount Type Investor

Sep-13 Stratasys $463 million Follow-on Equity Public

Sep-13 VoxelJet $100 million (Filed) IPO Public

Sep-13 ExOne $65 million Follow-on Equity Public

Jun-13 Arcam $8.75 million Private Undisclosed

May-13 Arcam $9 million Private Undisclosed

May-13 3D Systems $250 million Common Stock Public

Apr-13 Shapeways $30 million Private Andreessen Horowitz

Feb-13 ExOne $95 million IPO Public

Dec-12 Sculpteo $2.5 million Private Xange

Jun-12 Shapeways $6 million Private Lux Capital, Index Ventures

Aug-11 MakerBot $10 million Private Foundry Group

Sources: S&P Capital IQ, Company Press Releases


15/18


16/18




GE Capital

Fall 2013

50BILLIONIN INVESTMENTS

ACROSS THE

VALUE CHAIN

4.2BILLIONOF DIRECTAEROSPACE & DEFENSE

CORPORATE FINANCINGS

GE CAPITAL HAS

2SECONDSA GE-POWERED

AIRCRAFT

TAKES OFF

EVERY

$$

Our capital is already at workbuilding the business you know

AEROSPACE

& DEFENSE

Resources/Links

GE Global Research Center Manufacturing & Materials Technologies

GE Additive Manufacturing Website

Webinar - Additive Manufacturing at GE

Webinar The Future of Additive Manufacturing

Christine Furstoss White Paper Adding the Next Layer to Additive Manufacturing

Access GE Bringing the full breadth of GE to our customers

GE Capital Corporate Finance Aviation Supplier Financing Solutions
http://ge.geglobalresearch.com/technologies/manufacturing-materials-technologies/http://www.ge.com/stories/additive-manufacturinghttp://www.gecapital.com/en/insights-trends/webinars/previous-webinars.htmlhttp://www.ge.com/research/live/http://www.digitalmanufacturingreport.com/dmr/2013-07-17/adding_the_next_layer_to_additive_manufacturing.htmlhttp://www.americas.gecapital.com/working-with-us/access-gehttp://www.americas.gecapital.com/aviation-suppliers?cf-cid=2013004http://www.americas.gecapital.com/aviation-suppliers?cf-cid=2013004http://www.americas.gecapital.com/working-with-us/access-gehttp://www.digitalmanufacturingreport.com/dmr/2013-07-17/adding_the_next_layer_to_additive_manufacturing.htmlhttp://www.ge.com/research/live/http://www.gecapital.com/en/insights-trends/webinars/previous-webinars.htmlhttp://www.ge.com/stories/additive-manufacturinghttp://ge.geglobalresearch.com/technologies/manufacturing-materials-technologies/


17/18




GE Capital

Fall 2013

FINANCING AND KNOW-HOW.

DESIGNED TO HELP AVIATION PARTS

MANUFACTURERS UPGRADE AND GROW.

At GE Capital, Corporate Finance, were not just bankers. Were builders. Especially when it comes toaviation. As one of the worlds leading producers of jet engineswe built Americas rstwe have a deepunderstanding of what it takes for aviation parts manufacturers and suppliers to succeed. Thats why,

in addition to being one of the largest providers of commercial aviation equipment nance, we oersomething unique. Access to GE tools and insights that can help you take advantage of the innovationsrevitalizing our industry. So your business can take o and grow. Stop just banking. And start building.To learn more, contact Gib Bosworth at 949-838-3014 or email [email protected].

GECapital.com/aviationsuppliers

GE CapitalCorporate Finance


18/18


GE Capital

Fall 2013

GE Capital is an extension of GEs rich

heritage of building and supporting growthInvesting in the sectors we know best, we

can provide more than just financing: We

bring insight, knowledge and expertise to

every loan. And as a result, businesses that

finance with GE Capital benefit from the

global know-how and expertise of GE.

gecapital.com

Michael Zimm, CFA 646-428-7015Aerospace & Defense [email protected]

Technology & Business Services

Truck Transportation

Special thanks to contributing editor:Frances Spencer

Richard Aldrich, CFA 646-428-7365Chemicals & Plastics [email protected]

Metals & Mining

Auto & Auto Parts

Ben Abramovitz, CFA 646-428-7129

Media & Telecom [email protected]

Jeffrey Englander, CFA 646-428-7135Healthcare [email protected]

Construction

Industrial Products & Services

Loren Trotta 203-229-1877Food, Beverage & Agribusiness [email protected]

Financial Services

GE CAPITAL AMERICASINDUSTRY RESEARCH TEAM

GE Capital Spotlight Transaction

In October 2013, GE Capital, Corporate Finance - Aerospace & Defense provided

equipment financing to Morton Manufacturing for manufacturing equipment needed

to help meet the demands of commercial aviation customers.

Morton Manufacturing is a small, minority, woman-owned business located in Santa

Clarita, California. Founded in 1967, Morton is the leading supplier of nickel-alloy bolts

for gas-turbine aircraft engines, as well as aero-derivative gas-turbine engines for

industrial use worldwide.

GE Idea Works www.geideaworks.com

GE Idea Works connects GEs internal intellectual property, technology and resources

with the external world to help meet the demands of commercial aviation customers.

Copyright 2013 GE Capital Corporation. All rights reserved. GE, General Electric Company, General Electric, the GE Logo, and various other marks and logos used in this publication are

registered trademarks, trade names and service marks of General Electric Company. You may reprint or forward this presentation to others provided that it is reproduced or distributed in its

entirety, including this disclaimer.

IMPORTANT DISCLAIMER: This presentation provides general information and should not be used or taken as legal, regulatory, business, financial, tax, accounting or other advice, or relied upon

in substitution for the exercise of your independent judgment. For your specific situation or where otherwise required, expert advice should be sought. Although GE believes that the information

contained in this presentation has been obtained from and is based upon sources GE believes to be reliable, GE does not guarantee its accuracy and it may be incomplete or condensed. GE make

no representation or warranties of any kind whatsoever in respect of such information. GE accepts no liability of any kind for loss arising from the use of the material presented in this presentatio

Although General Electric Capital Corporation (GE) believes that the information contained in this newsletter has been obtained from and is based upon sources GE believes to be reliable, we do

not guarantee its accuracy and it may be incomplete or condensed. GE makes no representation or warranties of any kind whatsoever in respect of such information. GE accepts no liability of an

kind for loss arising from the use of the material presented in this newsletter. This newsletter is not to be relied upon in substitution for the exercise of your independent judgment or legal advice.
http://users/craig/Desktop/GE.IRM.Add.Manu./sh%20HD/Users/craig/Library/Caches/Adobe%20InDesign/Version%207.5/en_US/InDesign%20ClipboardScrap1.pdfhttp://www.geideaworks.com/http://www.geideaworks.com/http://users/craig/Desktop/GE.IRM.Add.Manu./sh%20HD/Users/craig/Library/Caches/Adobe%20InDesign/Version%207.5/en_US/InDesign%20ClipboardScrap1.pdf

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2013 - GE Capital - Additive_Manufacturing_Fall_2013