So much for "Made in Brooklyn." Less than a year after opening a 170,000-square foot factory in New York, MakerBot on Monday said contract manufacturer Jabil will now produce all of its 3D printers. Jabil is headquartered in the US but has production facilities overseas.
MakerBot, known for its desktop 3D printers, said it will transition production to Jabil "over the coming months," and lay off an undisclosed number of factory employees. CEO Jonathan Jaglom wrote in a blog post that the change is needed to "navigate the volatility of an emerging market."
"We expect that adopting a flexible manufacturing model will allow us to quickly scale production up or down based on market demands," Jaglom wrote, "without the fixed costs associated with maintaining a factory in New York City."
The 3D printing market is expected to reach $20.2 billion in 2019, according to analysts at Canalys, but MakerBot has struggled to reach everyday consumers, resulting in multiple rounds of layoffs last year.