Rising U.S. tariffs on products made in China could give the 3D printing industry a big boost. American companies can use 3D printing as an alternative of making products in China.
3D printing is a revolution that has transformed two important economic equations - the insourcing/outsourcing, and the globalization/localization equation.
It presents a balance between the outsourcing and the insourcing of manufacturing, favoring the insourcing.It elevates the balance between overseas and domestic manufacturing in favor of domestic manufacturing.
And rising US tariffs on China manufacture products could tip this balance even more for manufacturing products in the U.S. rather than China.
That’s good news for the 3D printing industry, which has been waiting for a second chance after suffering a setback in the last five years.
How can investors go along with this trend?These are two strategies.
First, be selective - take a closer look at the stocks of two market leaders: Stratasys and 3D Systems.Both the size and scope of these companies have benefited from the growth in demand for 3D printing.
Wall Street seems to have taken notice, sending the stocks of the two companies sharply higher in the last three months.
The second strategy, advocated by Jack Alvin (Reading Minds and Markets) is to buy all major players. Rising growth, he argues, will lift all boats.
In doing so, investors must monitor developments that drive industry growth, not financial metrics for different companies.
By buying shares in all four companies, the only trend investors have to monitor is the growth in sales of 3D printers, which could soar as the us controls tariffs on Chinese products.