Changing the World with a Glue Gun

In 1989, Scott Crump wanted to make a toy frog for his two-year-old daughter. As he worked in the kitchen shaping the frog with a glue gun, he was also inventing the 3D printing process that would transform manufacturing in the 21st century. Crump formed Stratasys to commercialize the process he named Fused Deposition Modeling (FDM) and the company is now the largest manufacturer of 3D printers with a 44% market share.

FDM works by depositing droplets of melted thermoplastic in a computer controlled pattern much like a regular desktop printer jets ink.. The plastic solidifies after it is deposited to form one layer of a 3D object. When each layer is finished, the print head or print table are moved to allow the next layer to be added. This process is repeated layer after layer until the 3D item is completed.

The raw material for an FDM printer is typically a coil of plastic filament which is fed into a heating block to heat the end of the filament to the melting temperature. Stepper motors or servo motors move the print head to the precise x, y and z position to extrude each droplet.

Diagram from RepRap Wiki

Stratasys manufactures a wide range of FDM machines from desktop models for designers to large industrial models for manufacturing plants.  Stratasys has a trademark on the term Fused Deposition Modeling and the abbreviation FDM so the RepRap, Makerbot and most other small 3D printers which use the same process refer to it as Fused Filament Fabrication or FFF.

The FDM process works with several types of thermoplastics including acrylonitrile butadiene styrene (ABS) polymer, polycarbonates, polycaprolactone, polyphenylsulfones and waxes making it suitable for a wide variety of prototyping and manufacturing applications.

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The Thrill of Ownership

Desktop 3D Printers from Stratasys

For me, it started with Stratasys, the 3D printer company. I had been researching additive manufacturing tools for building a new product and had even visited the Stratasys headquarters to see the machines in operation. Ultimately, we selected an Objet printer for the project and our new product was not successful.

Statasys remained intriguing however.  This was a mostly unknown technology that seemed like it could change the world.  So after carefully research and consideration, I took some of our savings out of some slow growing mutual funds and purchased a portion of the company.

Since that purchase, the company has grown, added new printers, introduced new modeling materials and made several acquisitions.  As an owner, it has been thrilling to watch.

There is an important psychological difference between buying stock and purchasing part of a company, even if the actual financial transaction is exactly the same. Often, buying stocks is similar to a poker game; you try to guess what the other stock buyers are thinking and whether investor sentiment will push the stock price up. In purchasing a company, the focus is on the intrinsic value of the company, the suitability of the products for the marketplace and the skill the management team has in operating the company.

As an owner, I have a responsibility to understand the marketplace and know the strengths and weaknesses of our products compared to those of our competitors. I need to pay attention to revenues and margins.  I need to watch cash flows just like any other business owner. For me, this is both exciting and good practice for the assessments that I have to make regularly for my employer.

Since that initial investment, I have purchased a few other companies. Ownership is a lot more challenging and rewarding than following the daily fluctuations in an index fund. Instead of watching the game, you are in the game.


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