A Most Strategic 3D Print Merger: The First of Many?

Two Canadian firms join in what could be a style soon to be seen everywhere. 

Readers of this publication are spread across the globe, with around 4-5% originating in Canada, so you may think this report is entirely not applicable to you. But I propose it is not. 

The background first: the two Canadian firms are Javelin, a reseller of Solidworks and other 3D-related products, joined with Cimetrix, a major reseller of Stratasys equipment and materials. 

But let’s look a bit deeper: Javelin is the largest reseller of Solidworks in that country, just as Cimetrix is the largest reseller of Stratasys equipment in Canada. Javelin also sells Stratasys gear, but at a lower level. Nevertheless, the combination of these two should pose a formidable force in the Canadian market. 

But there’s some interesting lessons here, lessons that may be of significant interest to resellers and buyers in other regions. 

In my experience resellers typically focus on a single product zone. Thus you very often find resellers who provide 3D printers and associated materials and services, and separately resellers who provide 3D software and related services. 

I suspect the reason for this disassociation is that in order to provide quality service to  clients – which is the primary benefit of using resellers – you must have appropriate expertise on hand in the disciplines of the sold products. 3D design and 3D printing, while related, require differently skilled people to provide that high quality service. If you don’t have access to those people, well, we can guess what happens: single zone sales. 

But that is the view from the reseller. What about the customer? 

Customers view the situation quite differently. In fact, these days many companies doing 3D design now operate their own 3D printers, and correspondingly, many companies who operate 3D printers, particularly larger-scale ventures, have their own 3D design staff. 

In other words BOTH of these disciplines are increasingly found in the same customer locations. 

Then the question must be asked, why have two different organizations selling products to them? Why not have ONE organization interact instead? 

This could save resellers considerably as only one set of clients would require management. Crossover of information would also be of huge interest to the reseller, as issues on one side of the equation could perhaps be solved by the other. For example, if new 3D design challenges in software were being encountered and resolved, it may also mean a requirement to change the 3D printing technology. See the synergy there? 

While this particular corporate event has taken place in Canada, it may set a bit of a precedent for the creation of “all in one 3D resellers” that could spread world wide. 

If you’re a reseller of 3D software or 3D printers in your region, you might want to begin discussions with your counterparts. It could make a huge difference to your businesses. 

Via Javelin