04-25-2016: MakerBot shut down its factory in New York
The production was moved to Jabil
On April 25, 2016, MakerBot announced the closure of its New York assembly facility and the relocation of all manufacturing to contract manufacturer – Jabil. The Brooklyn-based factory had produced the MakerBot Replicator 5th Generation, Mini, and Z18. Earlier models – Replicator 2 and 2X – had already been outsourced to an external manufacturer.
This was both a drastic and historic decision. On one hand, it involved laying off a significant number of employees, and on the other, it marked the end of an era for the company and the beginning of a long transformation toward its current state.
Since Jonathan Jaglom took over leadership of MakerBot in 2015, the company underwent a comprehensive restructuring that touched virtually every aspect of its operations. Nearly half of the staff who had worked under the leadership of Bre Pettis were let go, all three MakerBot retail stores were closed, and the company ended its partnership with Alexander Hafner, who had led the European division. Eventually, MakerBot was fully integrated operationally into its parent company, Stratasys.
From a business perspective, outsourcing production was a smart move. From a PR standpoint – much less so. MakerBot had always been closely associated with New York, and its Brooklyn-based factory in the Industrial City was one of the most recognized symbols of 3D printing worldwide. This decision solidified a new reality – things returned to their place. The myth of a young and rapidly growing startup burst like a soap bubble.
There would have been nothing wrong with this transformation if it had been accompanied by increasing sales. Unfortunately, since 2015, MakerBot had been steadily losing market share to much cheaper competitors. By 2015, new players like XYZ Printing and M3D – the maker of the popular Micro – had taken the lead in the low-budget sector. 3D Systems had entirely exited the low-cost 3D printer market, and in the fourth quarter of 2015, for the first time in its history, MakerBot fell out of the top five manufacturers.
In my interview with Jonathan Jaglom, he detailed the background of this decision, as well as the broader context of the MakerBot situation. I encourage you to listen to it.
Source: www.3dprint.com
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