The Past, Present, And Uncertain Future Of LulzBot

November 12, 2019 by Tom Nardi 45 Comments

Considering that it’s only existed for around a decade, the commercial desktop 3D printing market has seen an exceptional amount of turnover. But then, who could resist investing in an industry that just might change the world? It certainly didn’t hurt that the MakerBot Cupcake, arguably the first “mass market” desktop 3D printer, was released the same month that Kickstarter went live. We’ve long since lost count of the failed 3D printer companies that have popped up in the intervening years. This is an industry with only a handful of remaining veterans.

One of the few that have been with us since those heady early days is LulzBot, founded in 2011 by parent company Aleph Objects. Their fully open source workhorses are renowned for their robust design and reliability, though their high prices have largely kept them off the individual hacker’s bench. LulzBot was never interested in the race to the bottom that gave birth to the current generation of sub-$200 printers. Their hardware was always positioned as a competitor to the likes of Ultimaker and MakerBot, products where quality and support are paramount above all else.

While LulzBot printers never made an impact on the entry-level market, there are institutions willing to purchase a highly dependable American-made 3D printer regardless of cost. The United States Marines used LulzBot printers to produce replacement Humvee door handles in the field, and some of the modifications that were necessary to meet their stringent requirements eventually resulted in updates to the consumer version of the printer. NASA used a highly modified LulzBot TAZ 4 to print PEI at temperatures as high as 500°C, producing parts far stronger than anything that had previously been made on a desktop 3D printer.

Yet despite such auspicious customers, LulzBot has fallen on difficult times. Consumers have made it abundantly clear they aren’t willing to pay more than $1,000 for a desktop printer, and competition above that price point is particularly fierce. Last month we started hearing rumblings in the Tip Line that the vast majority of LulzBot staff were slated to be let go, and we soon got confirmation and hard numbers from local media. Of the company’s 113 employees, only 22 would remain onboard to maintain day-to-day operations. Production on their flagship models would continue, albeit at a reduced pace, and all existing warranties would be honored. But the reduction in staff and limited cash flow meant that the development of future products, such as the LulzBot Bio tissue printer, would be put on hold.

LulzBot wasn’t quite dead, but it was hard to see this as anything but a step on the road to insolvency. A number of insiders we spoke to said they had heard a buyout was expected, and today we can report that the sale of Aleph Objects to Fargo Additive Manufacturing Equipment 3D (FAME 3D) is official. Production of the current LulzBot models is expected to continue, and some of the 91 laid off employees are likely to be hired back, but continuing Aleph Objects CEO Grant Flaharty says the details are still being finalized.

This new financial backing, provided by a venture capitalist, is certainly good news. But it would be naive to think this is the end of LulzBot’s troubles. The market has spoken, and unless the company is willing to introduce a vastly cheaper version of their printer to entice the entry-level customer as Prusa Research has recently done, it’s unclear how an infusion of cash will do anything but delay the inevitable.

For what it’s worth, we hope LulzBot finds some way to thrive. The ideal of building fully open source printers is something near and dear to the heart of Hackaday, but after the loss of PrintrBot, we’re all keenly aware of how difficult it is for small American companies to compete in the modern 3D printing market.

More Layoffs At MakerBot

February 16, 2017 by Brian Benchoff 43 Comments

MakerBot CEO [Nadav Goshen] announced that changes are needed to ensure product innovation and support long-term goals in a blog post published yesterday. To that end, MakerBot will reduce its staff by 30%. This follows a series of layoffs over a year ago that reduced the MakerBot workforce by 36%. With this latest series of layoffs, MakerBot has cut its workforce by over 50% in the span of two years.

In addition to these layoffs, the hardware and software teams will be combined. Interestingly, the current Director of Digital Products, [Lucas Levin], will be promoted to VP of Product. Many in the 3D printer community have speculated MakerBot is pivoting from a hardware company to a software company. [Levin]’s promotion could be the first sign of this transition.

When discussing MakerBot, many will cite the documentary Print the Legend. While it is a good introduction to the beginnings of the desktop 3D printer industry, it is by no means complete. The documentary came out too early, it really doesn’t mention the un-open sourceness of MakerBot, the lawsuit with Form Labs wasn’t covered, and there wasn’t a word on how literally every other 3D printer manufacturer is selling more printers than MakerBot right now.

Is this the end of MakerBot? No, but SYSS is back to the pre-3D-printer-hype levels. Stratasys’ yearly financial report should be out in a month or so. Last year, that report was the inspiration for the MakerBot obituary. It’s still relevant, and proving to be more and more correct, at least from where MakerBot’s Hardware business stands.

Makerbot Has Now Cut 36% Of Staff In Last 6 Months

October 9, 2015 by Brian Benchoff 53 Comments

The CEO of Makerbot, [Jonathan Jaglom] announced this week a massive reorganization. Twenty percent of the staff will be laid off, management will be changed, an office will be closed, and perhaps most interestingly, the production of 4th generation of Makerbots will be outsourced to contract manufacturers.

This news comes just months after Makerbot announced its first 20% reduction in staff, and follows on the heels of a class action suit from investors. These are troubling times for Makerbot.

So Goes Makerbot, So Goes The Industry

In the last six months, Makerbot has closed all three of its retail locations in Manhattan, Boston, and Greenwich, CT. It has moved out of one of its office buildings in Industry City, Brooklyn as the company faces a class action suit from investors for possible securities violations. These are by any measure troubling times for anyone at Makerbot.

The 3D printing industry has been forced through the rollercoaster of the hype cycle in the last few years, and where Makerbot goes, media coverage and public perception of 3D printing goes with it. According to pundits, we are now deep in the doldrums of the trough of disillusionment. No one wants to make their own parts for their washing machine, it is said, and 3D printers are finicky devices with limited utility.

Despite these pundits’ projections, the 3D printing industry doubled in 2015. Multiple manufacturers of sub $5000 machines are going gangbusters, and seeing the biggest revenues in the history of their respective companies. By any measure except the one provided by Makerbot, we are still in an era of a vast proliferation of 3D printing.

Makerbot, for better or worse, is a bellweather, and public perception and media attention is highly dependant on the success of Makerbot. The Verge writes – incorrectly – “…The consumer 3D-printing market’s rise has slowed”, and Business Insider writes ‘consumers are beginning to lose interest.’ These are not statements backed up by facts or statistics or even hearsay; they are merely a reflection of the consumer’s disinterest in Makerbot and not of the 3D printing industry of the whole.

Unfortunately, we will not know the extent of how bad it is at Makerbot until Stratasys releases its 2015 financial report sometime in early March next year. Wohlers Report 2016, the definitive guide to the 3D printing industry, will be released sometime around May of next year. Keep one thing in mind: Makerbot did not build the 3D printing industry, and the public perception of Makerbot does not necessarily translate to the public perception of 3D printing.